THE precision engineering skills built up in Singapore's disk drive industry did not go to waste when the industry which once dominated world markets declined.
The skills have been put to good use in Singapore's growing medical technology (medtech) sector - a business that's shown to be more resilient than disk drive.
The disk drive industry demanded precision engineering skills to machine to tight tolerances and to assemble complex products to meet rigorous quality standards and customer service requirements.
'This skill set transfers well to the medtech industry,' says Thian Tai Chew, director of technology business and infocomm technology division at International Enterprise Singapore.
Singapore's precision engineering industry today provides support for the medtech's needs in clean-room moulding and assembly, precision machining and stamping.
'Supplier capabilities range from custom components through complete unit manufacturing,' Mr Thian says. 'In some cases, suppliers provide turnkey solutions. In others, they team up with complementary suppliers to address complex project needs.'
Vibrant industry
Such partnerships provide medtech clients a one-stop manufacturing service in Singapore.
According to Mr Thian, Singapore boasts a pool of about 30 electronics and precision engineering companies with ISO 13485 certification.
'These companies possess the requirements for a comprehensive management system for the design and manufacture of medical devices - and thus support the vibrant and growing medtech industry,' he says.
This pool of skills and talent is also in the right place. Singapore is well-connected to key growth markets such as China and India. It is also a trusted and competitive hub for leading medtech companies to develop and make innovative products for Asia and beyond.
More than 10 of the leading global medtech companies have set up regional headquarters in Singapore. Among them: Alcon, Boston Scientific, Edwards Lifesciences, Johnson & Johnson, Roche Diagnostics and Siemens Medical Instruments.
Currently, Singapore's precision engineering industry produces medical devices such as optical lenses, endoscopy video systems, electrocardiography and neurology electrodes and infant respiration monitors.
The medtech sector in the United States and Europe saw revenues jump 11 per cent to US$289 billion in 2008, when the global recession started, according to a report by consultancy firm Ernst & Young.
Revenues dipped less than one per cent in the first half of 2009 as the recession deepened.
'The medtech sector has proven to be one of the more resilient industries during economic downturns,' Mr Thian says.
Most of the medtech companies - 70 per cent according to one poll - are upbeat about the prospects for 2010 - and they are eyeing the expanding Asia-Pacific market.
'Asia presents new growth opportunities with a growing base of ageing population and rising affluence,' Mr Thian says. 'Alongside this development, Asians' growing purchasing power will fuel the demand for better quality healthcare systems and solutions.'
The growing Asian market offers a window of opportunity for medtech players to venture into new frontiers. Their presence in the region will, in turn, throws up opportunities for Singapore's medtech suppliers.
Extensive experience
'Many Singapore electronic and precision engineering companies have extensive experience in supporting complex, highly regulated manufacturing projects,' Mr Thian says. 'As regional experts with an extensive network of business relationships, they often have a better understanding of the best areas to locate facilities in terms of labour availability and associated support supply base.'
He says Singapore-based suppliers can often help medtech manufacturers negotiate the cost of running facilities in the region.
'Besides their regional footprint, Singapore's suppliers are also able to ensure consistent high quality for their customers,' Mr Thian says. 'The adoption of ISO standards and other quality checks are an integral part of Singapore's manufacturing culture.'
Singapore suppliers do not just provide manufacturing service, he says. They can be partners to clients, involving also in the design and development of a product.
'Singapore's supply base is focused on minimising the surprise factor that can increase total product cost,' Mr Thian says. 'Factors such as workforce education and stability, IP (intellectual property) protection and rigid adherence to regulatory requirements contribute to overall value for price by eliminating variables that can drive up accountability costs.'