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＝Pricing and Reimbursement＝
Pricing and reimbursement systems in Singapore are transparent and straightforward. Drug pricing is leftto market forces in the private sector, while, in the public sector, drugs are divided into two categories:‘standard’ and ‘non-standard’ drugs. Only the former are subsidised by the government, as the latter arepredominantly used in the private sector. The obligation of public hospitals to use generics whereavailable restricts the market for original products to drugs without a generic equivalent and the privatesector, while tendering reflects negatively on pharmaceutical values. Although the pricing and reimbursement systems are generally looked upon favourably by theinternational drug industry, recent proposals for changes in the regimes have caused some concern. Thegovernment has revealed its intention to reduce price levels in the country in a bid to contain rising levelsof public expenditure on healthcare and pharmaceuticals, which has worsened with the progress ofpopulation ageing and higher patient demands. Methods currently under consideration include theexpansion of parallel trade, and greater collaboration between the public and private sectors. The above measures, especially the former, are likely to put considerable pressure on multinational profitmargins, as it facilitates the entry of a large number of cheap medicines on to the market. However, as thechanges have been under discussion for some time, multinational pressure and the government’s desire toattract foreign investment may have contributed to slower-than-expected progress in this area. Given thatthis situation is unlikely to change in the short term, it can be assumed that such alterations will remain atthe proposal stage, for the time being.