What lies ahead for Singapore’s medical device market?

The sector will benefit from rising healthcare expenditure driven by an ageing population.

Singapore’s medical device market is projected to rise at a compound annual growth rate of 7.5% in local currency terms and 8.9% in US dollar terms until 2028, with expenditure expected to reach $1.1b.

A BMI report said that the sector will benefit from rising healthcare expenditure, primarily driven by the country’s ageing population which will increase demand for services and products.

The market will also be supported by a stable macroeconomic environment, with steady GDP growth and moderating inflation, boosting healthcare spending and investments in advanced medical technologies.

However, downside risks to the forecast stem from Singapore’s trade-dependent economy, as economic slowdowns in key trading partners like the US, Japan, and Mainland China could impact the demand for imports.

Moreover, rising trade barriers by the US on China’s exports, including higher tariffs and stricter regulations, could further hinder market growth.

“These may lead to increased supply chain disruptions, which is significant given China is a key market to Singapore for both medical device imports and exports,” the report said.