Why Singapore is the World’s New Pharma Powerhouse: Unpacking the Secrets Behind Its Manufacturing Boom

22 October 2024 | Tuesday | Opinion | By Venkatesh Arunachalam, General Manager of the Life Science Manufacturing group at Cognizant


Once known for its financial prowess, Singapore is emerging as a global pharmaceutical manufacturing hub, leveraging data-driven insights and digital innovation to attract billions in investment from industry giants like AstraZeneca and AbbVie.

 

 

Singapore’s pharmaceutical revolution: How data and digital transformation are fueling a global hub

Once primarily recognized for its prosperous financial sector, Singapore has rapidly evolved into a global powerhouse for manufacturing, and for pharmaceutical manufacturing in particular. This transformation is evident in the billions of dollars invested by major players who have established state-of-the-art facilities in the city-state. Recently, AstraZeneca announced a USD 1.5 billion investment to build its first end-to-end manufacturing facility for antibody-drug conjugates (ADCs) in Singapore. AbbVie also announced a USD 223 million expansion of its Singapore manufacturing facility, adding 24,000 liters of biologics drug-substance capacity [1, 2].

In today’s complex and interconnected manufacturing landscape, data-driven insights are essential for optimizing production, ensuring regulatory compliance and promoting innovation. As the pharma industry continues to evolve in Singapore, these insights will be critical for sustained growth. However, utilizing data-driven insights is easier said than done when issues like the need to integrate diverse systems not just within new facilities, but between the new sites in Singapore and existing hubs elsewhere in the world, pose significant challenges.

In this article, Venkatesh Arunachalam, General Manager in Life Science Manufacturing at Cognizant, answers the key question: How are pharmaceutical companies overcoming these challenges, and how are they leveraging data and digital technology to drive ongoing expansion in Singapore?

A rapidly transforming pharmaceutical manufacturing center

Singapore’s strategic emergence as a pharmaceutical manufacturing powerhouse is evident in its impressive growth trajectory, fueled by substantial investments from global leaders and innovative local enterprises. The market is projected to reach SGD 2.2 billion (USD 1.7 billion) by 2026, a testament to the success of government initiatives such as the establishment of the Biopolis research hub and the Experimental Drug Development Centre (EDDC) [3].

Several key factors contribute to Singapore’s attractiveness as a pharmaceutical manufacturing hub, including: 

  • A stable political climate
  • A pro-business environment with streamlined regulations and low corporate tax rates
  • Robust intellectual property protection
  • Strategic location in the APAC region. 

The government’s active support through financial incentives, research grants and industry partnerships has also fostered a collaborative ecosystem that nurtures innovation [4, 5]. Additionally, Singapore’s investment in developing a skilled workforce and cutting-edge research capabilities, coupled with strong industry-academia collaborations, has solidified its position as a global innovation leader in the pharmaceutical sector.  

These combined factors have propelled Singapore to the forefront of the pharmaceutical industry, positioning it as a prime destination for both established companies and emerging innovators.

IT/OT convergence: The key to seamless manufacturing in new markets

Connecting information technology (IT) and operational technology (OT) systems is essential for modern pharma manufacturing, merging two traditionally separate worlds: one that manages data, and another that controls and monitors physical operations and devices. This integration allows for seamless data flow and communication between different parts of the manufacturing process.

When entering new markets like Singapore, IT/OT convergence empowers life science companies to improve efficiency and enhance strategic decision-making in a number of ways:

 

  • Data aggregation and interpretation: Every step of the manufacturing journey, from R&D to quality control and distribution, relies on accurate, real-time data to achieve efficiency, agility and, ultimately, better patient outcomes. Integrating data from various sources across the manufacturing process can provide a holistic view of operations and enable real-time visibility into operations, as well as allowing the alignment of global production with local manufacturing data, ensuring consistency and compliance with regional regulations.
  • Process optimization and efficiency: IT/OT convergence can automate many manufacturing processes to optimize efficiency. It can also allow companies to learn from what is happening in one part of their operations to enhance processes in another, further improving the way they manufacture. 
  • Quality control and compliance: Data flowing from one system to another must be of high quality, in terms of accuracy and usefulness. IT/OT convergence can enable real-time monitoring of data to ensure it meets the organization’s needs. 
  • Supply chain optimization: IT/OT convergence can support companies in ensuring the traceability of their raw materials, and their finished products after they leave the line for regulatory compliance. Analysis of data can also enable better demand forecasting, reducing waste during production. 

 

Technology partners as catalysts for growth

For pharma manufacturers expanding into Singapore, ensuring connectivity relies on embracing digital transformation to enhance quality and compliance, accelerate innovation and foster collaboration across the entire value chain. In life science manufacturing, digital transformation goes beyond digitizing existing processes; it requires leveraging technologies like automation, AI, cloud computing and advanced analytics to achieve operational excellence.

In the pursuit of digital transformation, life science companies expanding into Singapore are finding invaluable allies in digital transformation partners. These partners, equipped with deep domain expertise and comprehensive solutions serve as strategic collaborators, guiding companies through the complexities of digital transformation.

By working hand-in-hand with these partners, pharmaceutical manufacturers can navigate the intricate challenges of data integration, system harmonization and technology adoption. This collaborative approach fosters innovation, accelerates time-to-value and empowers Singapore’s life science industry to lead the charge in harnessing the productivity benefits of connectivity and automation.

A prime example of this collaborative model is the Automation Engineering Office (AEO), where engineering firms specializing in physical infrastructure join forces with digital transformation partners. By combining their respective strengths, these partners ensure that digital capabilities are seamlessly integrated into the very fabric of a facility from the outset. This holistic approach maximizes efficiency, minimizes risk and accelerates time-to-value for pharmaceutical companies.

At the heart of this transformation lies a suite of cutting-edge technologies that are reshaping the manufacturing landscape:

  • Level 2 (L2) automation: By centralizing control systems and coordinating multiple devices, L2 automation enhances process control and efficiency, reducing manual intervention and human error. This shift toward automation not only boosts productivity but also lays the groundwork for a more agile and responsive manufacturing environment.
  • Distributed Control Systems (DCS) and Manufacturing Execution Systems (MES): These integrated networks provide real-time monitoring and data-driven insights across the entire production process. This empowers informed decision-making, optimizes resource allocation and ensures adherence to stringent quality and regulatory standards.
  • Cloud platforms: Offering scalable and flexible solutions for data storage, processing and analysis, cloud platforms break down data silos, enable seamless collaboration across global sites and accelerate the pace of innovation.
  • AI: By harnessing the power of machine learning algorithms, AI is revolutionizing pharmaceutical manufacturing. From predictive maintenance and anomaly detection to process optimization and even the development of personalized therapies, AI is unlocking new levels of efficiency, quality and patient-centric innovation.

However, harnessing the full potential of these technologies requires careful planning and execution. Data integrity, cybersecurity and the successful convergence of IT and OT are critical considerations that demand specialized expertise. Digital transformation specialists can guide companies through the complexities of implementation, ensuring a smooth transition to a data-driven, digitally empowered manufacturing environment. This strategic collaboration not only mitigates risks but also accelerates the realization of the transformative benefits that these technologies offer, positioning companies for sustained success in Singapore’s dynamic life science market.

A data-driven vision for the future of Singapore

Looking forward, Singapore is proactively positioning itself for continued growth by investing heavily in cutting-edge technologies like AI, machine learning and automation. These investments, coupled with ongoing efforts to foster a collaborative ecosystem between industry, academia and government, are creating a fertile environment for innovation and ensuring Singapore remains a global leader in pharmaceutical manufacturing.

Technology partners will continue to play a pivotal role in this journey. By providing comprehensive digital transformation solutions and deep industry expertise, these partners empower pharmaceutical companies to navigate complex challenges, optimize operations and drive innovation.

 

References:

  1. https://www.fitchsolutions.com/bmi/pharmaceuticals/drugmaker-investments-will-boost-singapores-pharmaceutical-sector-reflecting-robust-investor-confidence-23-05-2024 
  2. https://www.edb.gov.sg/en/business-insights/insights/why-singapore-is-a-top-choice-for-biopharma-firms-seeking-global-expansion.html 
  3. https://www.statista.com/outlook/hmo/pharmaceuticals/singapore
  4. SINGAPORE IN 2000 Continuing Stability and Renewed Prosperity amid Regional Disarray, Tim Huxley. Accessed: https://library.fes.de/libalt/journals/swetsfulltext/14218779.PDF
  5. https://govinsider.asia/intl-en/article/singapore-to-be-an-end-to-end-manufacturing-hub-for-healthcare-solutions-edb

 

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