BUSINESSWEEK ONLINE : NOVEMBER 27, 2000 ISSUE
INTERNATIONAL -- ASIAN COVER STORY A Biotech Hub (int'l edition) The country is heating up as a genomics research incubator Singapore has a reputation for results. So some have wondered over the years why the government was lavishing millions of dollars on the Institute of Molecular & Cell Biology--a basic research organization that never seemed to generate a product. Over its 14 years of existence, however, the Institute has attracted some internationally renowned researchers. And in October, their work paid off. The Institute won a vote of confidence when it was invited to join a consortium with several prominent U.S. and British genetics labs to complete sequencing of the puffer fish genome--a project that may greatly advance human genome research. ''People, money, and technology are finally coming together to make Singapore a key player in the genomics era,'' says IMCB Director Chris Tan. ''The opportunities for the takeoff are immense.'' Such successes are critical if Singapore is to achieve its aim of becoming a new global hub for biotechnology. Already it is a manufacturing base for global drug companies. Now, the government plans to spend $4 billion over the next five years to develop a full-fledged biotech industry. The funds will be used to sharply boost the budget for basic research, seed new medical startups, and lure the world's biggest multinationals to make Singapore their regional base for bringing new drugs to market. ''What we're lacking is drug discovery and development,'' says Economic Development Board Chairman Philip Yeo. ''To be effective, we need the whole value chain.'' The government hopes to build pharmaceuticals and medical devices into a $7 billion industry in five years, ranking it alongside electronics, petrochemicals, and banking as a pillar of the economy. To nurture a critical mass of researchers, the government is expanding life-sciences programs at local universities and is sending 200 PhD candidates to the West on full scholarships. TOUGH COMPETITION. By 2010, Yeo hopes to lure 15 major life-sciences companies to build regional drug development centers. The approach is one that the city-state has employed to great success in sectors like semiconductors and chemicals: Singapore will help finance a multinational's research operations, build low-cost facilities, and even contribute equity in a new venture. It also will grant a 10-year tax holiday. ''They get to recover their investment and pay no taxes,'' says Yeo. ''I get jobs, exports, and economic activity.'' Considering Singapore's small size and the tough international competition for biotech talent, it will be an uphill climb. ''I question whether Singapore has the breadth and depth needed to build a world-class research culture,'' says Chandru Rajam, who teaches management at the National University of Singapore Business School. ''The only hope is to bring in a large number of foreigners.'' That's exactly what the government aims to do. Already, it's a regional manufacturing base for seven of the world's biggest drug companies. Among them they produce nearly $4 billion worth of medicines annually. Over the next three years, Schering-Plough ( SGP), Wyeth-Ayerst, and Merck Sharp & Dohme will pump nearly $1 billion into new plants. Some companies also are using Singapore as a base for coordinating other operations in Asia. Ultimately, Singapore wants to become a hotbed of homegrown biotech startups. But it will take years before new products start rolling out of labs such as IMCB. And there are no guarantees that Singapore will ever produce a blockbuster drug. But by generating international publicity through projects like the puffer fish genome--and many more years of patience--Singapore could well project itself onto the world biotech map. By Michael Shari, with Pete Engardio, in Singapore _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS Asia's Future (int'l edition) COVER IMAGE: Asia's Tech Future TABLE: The Tech Future Beyond the Lab (int'l edition) CHART: Startup Explosion The Chips Are Up (int'l edition) TABLE: Betting Big Chasing the Dream to Shanghai (int'l edition) Minds over Matter (int'l edition) CHART: Going, Going... A Biotech Hub (int'l edition) CHART: Genetic Express Rewriting the Rules (int'l edition) TABLE: Vietnam's IT Plan INTERACT E-Mail to Business Week Online

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