Singapore bets on AI in healthcare, but success will depend on commercial sustainability

Artificial intelligence innovations in Singapore's healthcare sector are attracting growing interest from private players and investors, but translating them into commercially viable applications remains difficult, according to Associate Professor Daniel Ting, director of the SingHealth AI Office. Only a small minority of healthcare AI algorithms eventually make it into real-world clinical settings while remaining commercially sustainable, he said, despite strong government support through initiatives like the National AI Strategy 2.0 and the S$37 billion RIE 2030 research plan.

Singapore bets on AI in healthcare, but success will depend on commercial sustainability Private sector needs to translate AI productivity gains into cost savings for patients, experts say SINGAPORE Artificial intelligence innovations are attracting growing interest from private healthcare players and investors, but translating them into commercially viable applications within the sector can be more difficult. A deep talent pool and strong government support within the ecosystem has seen Singapore’s medtech https://www.businesstimes.com.sg/companies-markets/consumer-healthcare/singapores-medtech-sector-and-locally-made-medical-devices-punching-above-their-weight1 and biotech https://www.businesstimes.com.sg/opinion-features/forget-chasing-next-pfizer-singapores-biotech-future-lies-innovation-not-giants sectors grow considerably in recent years, with an increasing number of startups finding success developing AI tools for clinical use. For example, an AI-powered wound care scanner by local startup KroniKare has found its way into hospitals around the island, reducing wound assessment time by up to 70 per cent. Still, only a small minority of healthcare AI algorithms developed eventually make it into real-world clinical settings while remaining commercially sustainable, said Associate Professor Daniel Ting, director of the SingHealth AI Office in an interview with The Business Times . The biomedical sciences industry has seen its fair share of high-profile failures https://www.businesstimes.com.sg/startups-tech/startups/temasek-backed-tessa-therapeutics-cease-operations-after-failure-raise and funding winters https://www.businesstimes.com.sg/startups-tech/startups/singapore-biotech-startups-face-funding-drought-search-patient-capital over the years as investors turned towards lower-risk sectors. Singapore’s AI ambitions in healthcare For the Republic, fostering robust and competitive innovation https://www.businesstimes.com.sg/companies-markets/star-launches-s38-million-medtech-catapult-drive-medical-device-commercialisation within the healthcare industry is increasingly becoming a national priority. Singapore has keenly backed AI technology through strategic investments as part of its National AI Strategy 2.0, positioning the country as a prominent hotspot for private enterprises deploying AI across various sectors from software to manufacturing. The healthcare sector, Prof Ting believes, is among the most well-positioned to benefit from this national AI push. As part of the Research, Innovation and Enterprise RIE 2030 five-year strategy, the Ministry of Health will emphasise AI compute capabilities and health data to build the Republic’s medical research capacity. The latest tranche of RIE 2030 has earmarked S$37 billion https://www.businesstimes.com.sg/singapore/economy-policy/singapore-invests-s37-billion-rie2030-research-plan-semiconductors-ageing-among-focus-areas for research and innovation to address key national needs – including healthcare for a rapidly ageing population. In July, the Republic launched the Singapore Medical Foundation AI Model Simfoni , an initiative which will integrate AI models tailored specifically for Singaporean patients and medical practices into public healthcare systems. Private healthcare systems are distinct from public healthcare in their for-profit objectives, but Prof Ting noted that both have different yet complementary roles in driving the sector’s technological transformation as AI adoption accelerates. Private players are increasingly deploying AI tools across operational and medical processes. Fullerton Health has selectively implemented https://www.businesstimes.com.sg/startups-tech/technology/tapping-tech-and-ai-key-bringing-down-costs-fullerton-health-ceo AI into its operations, with use-cases from reading X-rays to writing code, while SGX-listed integrated healthcare group IHH Healthcare has introduced AI tools for nurse rostering and fee estimation processes. But industry leaders believe AI’s biggest commercial opportunities extend well beyond improving hospital operations. Drug discovery, for instance, could potentially see major transformation as AI augments the development process https://www.businesstimes.com.sg/events-awards/design-ai-tech-awards/design-ai-and-tech-awards/revolutionising-drug-discovery-ai-south-east-asia . Prof Ting explained that traditional timelines in drug development are often long, generally taking ten to 15 years from identifying a biological target to regulatory approval, while failure rates remain high. These development challenges are why drug prices remain high, as drugmakers often seek to recover costs from both the successful development process and other pipelines that failed to discover viable drugs. “The costs can be a few billion dollars,” Prof Ting added. He said AI could shorten the medical product life cycle by helping researchers identify promising molecules, recruit suitable patients for clinical trials and reduce costly failures. “With AI, you can potentially cut the cost by 50 per cent throughout the total medical product life cycle,” he said. Global pharmaceutical giants such as Pfizer and Elil Lilly are investing heavily in AI tools that could accelerate timelines rapidly, while local players like biotech startup Nanyang Biologics https://www.businesstimes.com.sg/singapore/singapore-biotech-startup-nanyang-biologics-bets-ai-drug-discovery-platform-unlock-revenue are betting on the technology to drive long-term growth. Meanwhile, the rapid development of agentic AI systems could transform how healthcare is provided. Within hospitals, such tools could drive efficiency in triage, medical screenings, diagnosis and prescription of care, he noted. The opportunities for deploying AI agents extend beyond hospitals. “If you look holistically at healthcare, medical care is just one of the big pillars – there is still nutrition, mental wellness, counselling and education,” Prof Ting added. But scientific breakthroughs alone are not enough to guarantee commercial success, he noted. Rather, what matters more is how these innovations can be applied to drive productivity and revenue within the private sector. “If the innovation is scientifically robust and clinically applicable, the technology will remain,” said Prof Ting. “Then it comes down to the business model, the go-to-market strategy, and how financially sustainable it is.” He acknowledged that profitability remains critical in sustaining private healthcare, as revenue-generating providers can attract better technology and purchase better equipment. Reducing patient cost For private healthcare providers, however, those investments must ultimately translate into lower costs and better outcomes for patients, said Dr Prem Kumar Nair, group chief executive of IHH Healthcare, at a panel discussion at FutureHealth.Now 2026 https://www.businesstimes.com.sg/companies-markets/preventive-health-offers-new-opportunities-private-healthcare-patient-needs-develop-ihh . Dr Nair acknowledged that rising costs have been an increasing concern for many of IHH’s patients, adding that medical inflation often rises faster than the consumer price index worldwide. “Payers and policyholders are getting very anxious,” he said. “I have patients who tell me they are more concerned about their insurance policies than the outcome of their surgery.” Investors share a similar view. Ganen Sarvananthan, managing partner at asset management firm TPG Asia, added that private capital is also closely watching the potential of AI to raise productivity and revenue, while lowering costs for the consumer. Also speaking at the conference, he said: “The payers, whether they are governments or insurers, want to see lower costs.” He added that investors are increasingly backing healthcare providers that can use technologies to increase the volume within their existing infrastructure. “If you can treat more patients in your hospital, that allows you to pass on cost savings to customers,” he said. But Sarvananthan cautioned that investments in technology may not always lead to immediate cost saving. Often, labour costs remain unchanged while hospitals incur additional spending on AI platforms and computing resources, meaning overall costs may initially rise. For example, AI could reduce the time specialists spend interpreting routine scans, allowing them to devote more time to complex interventional procedures. The long-term return, he said, lies in enabling hospitals to make better use of expensive clinical infrastructure while improving productivity, rather than simply reducing headcount. 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