Mr Reimar Friedrich, Chief Executive Asia of Siemens Medical Engineering Group,

Dr Roger Radke, Managing Director for Siemens

Audiologisgche Technik

His Excellency, Mr Volker Schlegel, the German Ambassador to

Singapore,

Distinguished guests,

Ladies and gentlemen,

I am delighted to join you this morning for the opening of Siemens Medical Instruments’ (SMI) new facility in Singapore.

As an industry, the Life Sciences will grow rapidly in the coming years, worldwide and in Singapore. We hope to make it the fourth pillar of Singapore’s manufacturing sector after electronics, chemicals and engineering. Recently, the Government has announced plans to expand this industry through investment in R&D and development of human resources. We are focusing on four main areas: medical devices, nutrition & healthcare, pharmaceuticals and biotechnology. The manufacture of medical devices started in the late 1970’s and has since evolved from the manufacturing of disposables, like intravenous sets, to high value electromedical systems. Today, there are 17 medical devices companies in Singapore employing close to 4,000 people. The manufacturing output reached S$1.3 billion in 1999, a growth of 16% from the previous year. SMI is a major contributor to the growth of our medical devices industry.

SMI is the world-leader in hearing aids. Since 1993, SMI has made Singapore its global hub for the manufacturing and logistical support of its hearing aids business. The hearing instruments manufactured here, such as the Behind-The-Ear and In-The-Canal models, require sophisticated process technology and well-trained manpower. The products are high in value. SMI holds the product charters for a range of products assembled in the region. This new plant we open today is part of SMI’s effort to streamline and strengthen its manufacturing and logistics in the region.

To facilitate the growth of the medical devices industry and help companies like SMI, the Government will promote private sector collaboration with our research institutes, encourage innovation and product development, and help build up a cluster of local companies to support the industry.

First, our research institutes will be happy to work with medical devices companies to create new and better technology, and help bring about greater technological transfer and sharing. The Institute of Materials Research and Engineering, GINTIC Institute of Manufacturing Technology, Kent Ridge Digital Lab and the Biomedical Engineering Research Centre are all potential partners for medical devices companies. These institutes offer a comprehensive range of capabilities including automation, robotics and biomaterials. They can help do research and process development. Singapore’s healthcare system is also an asset. Our hospitals and national specialty centres work closely with medical devices companies to carry out the clinical testing of new products. Together, our research institutes and healthcare facilities generate a reservoir of skilled manpower which the medical devices industry can tap on.

Second, in line with Singapore’s effort to develop a culture of innovation, we encourage medical devices companies to use Singapore as a testbed for innovation and product development. The Innovation Development Scheme supports such activities. Through its collaboration with GINTIC under this scheme, SMI has successfully developed thermosonic flip-chip process technology. This technology improves the manufacturing process significantly. In partnership with Temasek Polytechnic, SMI has also developed the world’s smallest pocket hearing aid powered by AA batteries. The device was developed based on the need of users in remote areas where special small batteries are difficult to find. In ways big and small, our facilities in Singapore support the development of products for world markets and the customisation of products for the Asian market.

Third, we will help to build up a base of local companies in precision engineering and electronics to support the manufacturing activities of medical devices companies. All over the world, manufacturers are outsourcing, consolidating and restructuring to concentrate on their core businesses. MNCs like SMI can make use of reliable local companies for mould-making, tooling, plastic injection moulding and PCB assembly. This enables medical devices companies to source locally, streamline their supply chain, reduce cost and lower risk. The Local Industry Upgrading Programme (LIUP) is available for such local partnerships. Through LIUP, medical devices companies work closely with local players to upgrade their technology and help them meet international manufacturing standards.

SMI’s growth in Singapore is partly the result of close collaboration between the private sector and various government agencies. We will find ways to improve this formula further so that the Life Sciences in general and the medical devices industry in particular will flourish in Singapore.

It is now my pleasure to open the new SMI facility here. I congratulate the owners, managers and staff on this happy day and wish you great success.

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