Pharmaceutical companies still keen to grow in S'pore: DPM Gan

But investment climate will get more competitive due to US tariff threats

- Annabelle Liang Correspondent

Pharmaceutical companies here with plans to invest in the US are committed to growing in Singapore, but tariff threats could raise competition for investment dollars in the long run, Deputy Prime Minister Gan Kim Yong said.

“Many of these plans (to invest in the US) are not directly in competition with Singapore because many of them are still building capacity in Singapore. That is encouraging and comforting,” Mr Gan told reporters at a press conference on Sept 27.

This comes after US President Donald Trump on Sept 25 announced sweeping new tariffs, including 100 per cent duties on branded drugs imported into the US, with effect from Oct 1.

Most pharmaceutical exports from Singapore are branded and patented products. Pharmaceutical exports account for around 13 per cent of Singapore’s exports to the US, amounting to about $4 billion, DPM Gan said.

However, he added that many pharma companies operating in the Republic already have plans to build factories in the US, which could exempt them from the levy.