Why Singapore Is Emerging as Biopharma’s China+1 Hub

At first glance, 2026 has not been kind to Singapore's biopharmaceutical sector. MSD and BioNTech have announced plans to scale back production and cut jobs here. Sector output fell by double digits year on year for two quarters running. For an industry long seen as one of Singapore's most dependable growth engines, that is a difficult run of news.

At Connexius, we think the headlines miss the bigger story. Look past the quarterly numbers and the structure of global drug development is shifting. That shift is making Singapore more relevant to companies that operate between China and the West, not less.

Pharmaceutical output statistics swing for a simple reason. A small number of very high-value products can move the numbers sharply, in either direction. Analysts quoted in recent coverage, including economists at OCBC and Bain & Company, cautioned against reading the dip as a direct result of US tariffs. Trade-policy effects take time to show up, and several tariff measures are still being challenged in US courts. Many large drugmakers are waiting for clarity before they redesign their supply chains.

The fundamentals remain substantial:

More than 60 biopharmaceutical plants operate in Singapore

Eight of the world's ten largest big pharma have manufacturing or R&D operations here

The sector employed about 9,300 people last year and produced more than S$15 billion in output

Contract manufacturers here typically earn healthy margins, reported in the mid-teens

Long-term capital commitments also tell a clear story. AstraZeneca is investing US$1.5 billion in a Tuas South plant for antibody-drug conjugates, due to open in 2029. Sanofi opened its S$800 million modular vaccine and biologics facility in 2024. Companies don't make decade-long bets like these on a market they expect to fade.

The more important shift is happening to the north. China has become a serious force in drug discovery and development. Industry estimates put Chinese development costs at roughly a third to a half of global benchmarks. Clinical trial recruitment can be several times faster. Some Chinese innovators move from target identification to clinical trial applications far faster than global peers.

For Western pharma, that makes China an increasingly important source of new drug candidates. It has also drawn political scrutiny. Some US lawmakers want to restrict partnerships with Chinese biotech firms, much as Washington has done with semiconductors.

This leaves both sides with a problem. Global drugmakers want access to Chinese innovation but need to manage policy risk. Chinese biotechs want access to Western markets but face growing barriers to operating there directly. Industry observers note that many Chinese firms now prefer to license their intellectual property to partners who can take products to market overseas, rather than setting up in the US themselves.

This is where Singapore's value becomes clear. It is rarely the cheapest place to make medicine, and it doesn't try to be. It competes on things that are harder to copy:

Trust and neutrality. In a divided geopolitical landscape, Singapore is seen as a credible, rules-based partner by both Western and Chinese companies.

An end-to-end ecosystem. Research, translational science, clinical development, advanced manufacturing and regional headquarters functions are all within one small, well-connected market.

Regulatory and IP strength. Its regulatory standards and IP protection carry weight with US, European and Japanese regulators and partners.

Proven execution. Companies such as Hilleman Laboratories have moved their global headquarters here within months, helped by strong government support.

Cytiva's 2025 Global Biopharma Index ranked Singapore sixth among the world's leading biopharma ecosystems, citing its talent, innovation readiness, manufacturing capability and supply chain resilience.

The emerging model is a hybrid one. A company is based in Singapore, partners with China for speed and cost in early R&D or trials, and works with multinationals for late-stage development and global commercialisation. Singapore becomes the trusted bridge between Asian innovation and Western markets.

For Chinese biotech and pharma companies, a Singapore base can provide a credible platform for licensing deals, regional headquarters and access to international capital and partners. It can also ease some of the scrutiny that comes with operating directly in the US.

For multinationals, Singapore offers a way to diversify supply chains and reduce policy risk while staying close to Asia's fastest-growing innovation centres.

For Singapore-based biotechs, cross-border partnerships, including with China, can speed up development. Government agencies such as EDB and Enterprise Singapore are actively working to connect local firms with global pharma.

We believe Singapore's biopharma story is entering a new phase. It is moving away from volume manufacturing towards high-value, high-trust activity that sits between East and West. The companies that benefit most will be the ones that set up their structure, partnerships and market-entry strategy early, before policy pressures force their hand.