Chinese MedTech Companies Expand into Southeast Asia, with Singapore as the First Stop

Published on July 11, 2024 | Lianhe Zaobao

From left: Fang Li, Assistant General Manager of Suzhou Iron Technology Co., Ltd.; Tan Chai Jiak, Managing Director and Head of International Business, Global Enterprise Banking at OCBC Bank; Zhao Jingwei, Chairman of Suzhou Industrial Park Health Industry Co., Ltd.; Chen Qing, Head of Overseas Marketing at Esseniot Medical Technology Development (Suzhou) Co., Ltd.; and Yao Yi, Chairman and Chief Technology Officer of Suzhou LinaTech Co., Ltd.(Photo courtesy of OCBC Bank)

In recent years, amid growing geopolitical tensions, an increasing number of Chinese medical technology companies have looked to Singapore as a strategic base to explore business expansion and penetrate the Southeast Asian market.

According to a Deloitte report published in February 2024, leading Chinese medical device manufacturers derive only 20% to 30% of their revenue from exports—significantly lower than the global average of 50% to 60%. Meanwhile, Singapore’s medical device market is projected to grow at a compound annual growth rate of 8.8% from 2021 to 2026. Despite this growth, Chinese imports currently account for only 2% of Singapore’s medical device imports.

Recently, three Chinese medical technology companies from Suzhou Industrial Park visited Singapore and other ASEAN countries to explore market opportunities. In interviews with Lianhe Zaobao, they shared insights on their strategic plans for Southeast Asia.

Singapore as a Strategic Gateway

Yao Yi, Chairman and Chief Technology Officer of cutting-edge medical equipment manufacturer LinaTech LLC, expressed interest in leveraging Singapore’s technology infrastructure and talent pool to collaborate with local hospitals and enhance brand credibility before expanding into neighboring ASEAN countries.

He noted that many ASEAN nations face a shortage of healthcare professionals capable of operating advanced equipment—an issue that can be addressed through artificial intelligence (AI) and automation. These technologies can assist doctors in equipment operation and help lower healthcare service costs. Singapore, with its robust technological ecosystem, is well-positioned to provide these resources. Companies like LinaTech are considering setting up AI training centers in Singapore.

Fang Li, Assistant General Manager of Suzhou Iron Technologies, acknowledged that while Singapore is a relatively small market, a successful project implemented here could serve as a powerful demonstration for other Southeast Asian countries—accelerating broader regional development.

Chen Qing, Head of Overseas Marketing at Esseniot, revealed that the company has already established a Southeast Asia marketing and R&D center in Singapore this year. This move aims to maintain close engagement with local business channels and identify new partnership opportunities.

Vast Potential in Southeast Asia’s Medical Sector

Yao Yi pointed out that countries like Indonesia have an acute shortage of high-end medical equipment when benchmarked against World Health Organization (WHO) standards, indicating significant unmet demand.

Chen Qing observed that Western brands currently dominate the Southeast Asian medical equipment market, nearing monopoly levels. However, Chinese products offer superior cost-effectiveness, making them attractive alternatives.

Zhao Jingwei, Chairman of Suzhou Industrial Park Health Industry Co., Ltd., emphasized that while Chinese companies are now on par with or even surpassing Western counterparts in technological capabilities, they also bring stronger emergency response capabilities, customization services, and cost efficiency—enhancing their competitive edge.

Considering Supply Chain Relocation

Currently, most Chinese medical tech companies are expanding into Southeast Asia through brand collaborations, IP licensing, and technology-sharing partnerships.

However, Fang Li noted that if demand scales sufficiently and cost structures prove favorable, companies would consider relocating portions of their supply chains to Southeast Asia.

Zhao Jingwei added that while challenges are inevitable in the development journey, the opportunities outweigh the risks. He highlighted that multiple platforms exist to facilitate China-Singapore government collaboration, which actively supports the introduction of Chinese innovation into the Southeast Asian region.

He also stressed that Singapore’s stable political and economic environment, its regional influence across ASEAN, and collaborative frameworks such as the Singapore Economic Development Board’s “Singapore+1” strategy, make it an ideal gateway and first stop for Chinese companies looking to expand into Southeast Asia.

Support from Financial Institutions

To support these efforts, OCBC Bank recently hosted the Singapore edition of its “OCBC Easy Access” series, facilitating engagement between over 10 Chinese medical technology companies and local organizations. The event enabled these companies to better understand the opportunities and resources available for establishing a presence in Singapore and expanding across the region.

Tan Chai Jiak, Managing Director of Global Enterprise Banking, International Business at OCBC Bank, remarked that every company is unique, and thus, the bank offers tailored services. These go beyond financing to include market connectivity, payment solutions, institutional matchmaking, and access to local networks.