SINGAPORE – July 31, 2025 – Markets in Asia-Pacific are rapidly gaining ground as credible innovation hubs amid the reshaping of global biotech strategies, driven by geopolitical tensions and significant U.S. research funding cuts. This is according to a new report from Bain & Company, developed in partnership with the Agency for Science, Technology and Research (A*STAR), the Singapore Economic Development Board (EDB), J.P. Morgan and SG Growth Capital.

The report also revealed that several Asia-Pacific (APAC) governments have implemented targeted programs that provide critical capital and infrastructure that support early-stage research and development (R&D), to attract more private capital investments to flow into their markets. Singapore, in particular, backed by political neutrality, strong intellectual property (IP) protection, legal transparency, and regulatory alignment, along with its commitment to innovation, is also rising in appeal to major pharmaceutical companies, top-tier scientific talent, and biotech firms adopting geographic diversification and IP-splitting strategies for investment resilience and to manage international risk.

A Global Rethink of Innovation Geography

Budget cuts at the U.S. National Institutes of Health (NIH), along with rising geopolitical tensions, could impact the development of early-stage research, reduce grant availability, and slow U.S.-led innovation. This presents an opportunity for biotech hubs in other regions such as APAC, as the potential migration of US-based scientific talent would pave the way for APAC governments and institutions to bolster their innovation bases. Such developments are prompting global pharmaceutical companies to reconfigure their R&D capabilities and pivot towards APAC, with industry giants like Pfizer and AstraZeneca committing (multi)billion-dollar investments to building R&D facilities in China.

China continues to dominate investment flows, accounting for over 75% of regional biotech venture capital and private equity flows since 2019. It has also seen high-value licensing deals exceeding US$50 million surge nearly sixfold since 2020. While China continues to offer significant advantages in cost efficiency and scale, persistent geopolitical tensions and mounting policy uncertainty are diversifying capital flows into emerging hubs like Singapore and South Korea.

“We are looking at an exciting era for APAC’s biotech sector, with the opportunity for true innovation to emerge from a geography that historically has been primarily a commercialization hub,” said Fabio La Mola, Partner at Bain & Company. “Biotech companies must rethink how and where they secure capital, demonstrate late-stage readiness, and build cross-border operating models that anticipate regulatory, geopolitical, and talent-related challenges. Similarly, western companies need to look more systematically at APAC to source innovation in high-impact areas like AI-enabled drug discovery, cell and gene therapies, and antibody-drug conjugates, as these modalities are gaining momentum.”

Strong Public Sector Support in APAC Closes Funding Gap for Early-Stage R&D

From 2019 to 2024, late-stage biotech deal volumes in the region grew 1.5x, while early-stage funding declined at a compound annual growth rate (CAGR) of 11%, reflecting rising investor risk aversion and preference for more mature, clinically validated projects with clear commercialization pathways. In response, public institutions across the region are playing a critical role in closing early-stage R&D funding gaps:

• South Korea’s Korea Drug Development Fund (KDDF) has committed US$1.6 billion to over 1,200 projects by 2030
• Japan’s Bioventure Support Program is deploying US$366 million to nurture biotech start-ups
• India’s Biotechnology Industry Research Assistance Council (BIRAC) is fueling early innovation through targeted grants and low-interest loans.

“The groundbreaking innovation and advancements in biotechnology in Asia Pacific have reshaped the way companies, investors, and the scientific community are looking at high impact investments. These are truly exciting times as the region plays a significant role with early-stage breakthroughs helping to take the industry to a new level of cutting-edge research and strategic collaborations further ensuring the continued transformation of global healthcare,” said Amy Tan, Asia Pacific Head of Innovation Economy at J.P. Morgan.

Singapore’s Strategic Biotech Edge

Singapore offers a world-class biotech innovation ecosystem built on nearly three decades of strategic investment, supportive government policies, and robust infrastructure. The government’s ongoing S$28 billion Research, Innovation, and Enterprise (RIE) 2025 plan has laid the foundation for deep tech and biomedical advancement, while the forthcoming RIE2030 strategy (2026–2030) will sustain this momentum with a strong emphasis on applied AI across key sectors. A core pillar of RIE2030 is the development of research talent with both AI and domain-specific expertise, with infrastructure upgrades to accelerate innovation.

Complementing this vision are risk-sharing schemes like the expanded Startup SG Equity program which exceeds S$1 billion in co-investment capital. In addition, there are collaborations such as with Flagship Pioneering, the venture creation firm behind Moderna, which launched its regional hub in Singapore with A*STAR, jointly committing up to S$100 million to advance biotech and healthtech innovation in APAC. These partnerships aim to nurture entrepreneurial talent and explore new and innovative approaches to venture building in the biotech sector. Anchored by advanced infrastructure developments like the Biopolis cluster and Tuas Biomedical Park, Singapore is well-positioned as a launchpad for next-generation therapies and a regional R&D hub for biotech growth. Singapore’s pro-innovation environment also sets the stage for early scientific discoveries to translate into clinically and commercially viable assets, such as breakthrough developments like an anti-dengue virus antibody between A*STAR, Chugai Pharmabody Research (CPR), and the National University of Singapore (NUS).

Singapore has built a robust biomedical ecosystem over three decades that is stable and innovation ready, positioning us well to capitalise on the global shift towards Asia-Pacific as an innovation hub. At A*STAR, we’re translating deep science into globally investible deep tech spin-offs, and driving innovation through co-development with companies. We invite companies looking to grow and scale in Asia to anchor their next phase of growth in Singapore,” said Ms Irene Cheong, Assistant Chief Executive (Innovation & Enterprise), A*STAR.

“Singapore is a trusted innovation hub where global biopharmaceutical companies and biotech firms have access to a thriving ecosystem of partners, strong talent pool, world-class infrastructure, and robust Government support. Leading and emerging players continue to anchor product, process and clinical development activities here, creating good research and job opportunities for Singapore,” said Goh Wan Yee, Senior Vice President for Healthcare at Economic Development Board (EDB).

“EDBI, the investment arm of SG Growth Capital, has partnered with global companies and funds to develop Singapore’s biomedical science ecosystem since 2000s. We remain dedicated to advancing the biotech industry in the APAC region from Singapore, where a vibrant ecosystem, world-class research, and strong public-private partnerships come together to accelerate innovation. A key priority for us is supporting the next generation of innovators and entrepreneurs leveraging Singapore as a launchpad for advancing drug development and addressing unmet clinical needs. Our collaboration with EDB, A*STAR, J.P. Morgan and Bain reinforces our shared vision of making APAC a leading hub for biotech excellence,” said Jolene Ooi, Partner, Healthcare, EDBI (Investment arm of SG Growth Capital).

APAC’s Appeal for Biotech Talent

APAC markets, backed by regulatory agility and policy environments that protect IP and support innovation, are rising in profile as future-facing global biotech hubs. Initiatives are also in place to boost domestic research capacity and draw world-class talent. For example, Singapore has launched Tech.Pass, a talent visa program to attract founders and technical experts from around the world, and Tech@SG, targeted at fast-growing companies securing work passes for critical talent to scale the business. South Korea’s “Top-Tier Talent Visa” also offers expedited residency, tax exemptions, and family benefits.

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