Lessons from a Singapore medtech leader

ABEL Ang, the chief executive of Temasek-owned Advanced MedTech, has experienced first-hand the breathless growth of Singapore’s medtech sector.

After graduating with a degree in communications, he joined Singapore’s Economic Development Board where he was guided by mentors including then-EDB chairman Philip Yeo.

He joined the private sector in 2006 and held various roles before helping to turn around a declining Advanced MedTech (formerly Accuron MedTech, a subsidiary of Accuron Technologies). Under his leadership, Advanced MedTech is now arguably South-east Asia’s largest medical devices business.

Its turnaround is part of the broader growth spurt in the sector here.

In those 15 years of Mr Ang’s medtech career, Singapore’s medtech manufacturing output rose from S$2.4 billion to over S$15 billion last year.

The number of employees in this sector soared to more than 16,000 people, from just about 6,600 previously.

In an interview with The Business Times, Mr Ang shares how he charted a turnaround for the business, tips on entrepreneurship, and some ways to push the medtech sector to new heights.

Take risks

The medtech industry grapples with risks associated with customer adoption, funding, potential product failure, and research and development. Those who want to do well must be able to stomach that, he said.

Cut out distractions

When Mr Ang became CEO of Accuron MedTech, the company was also in the veterinary and dental businesses. It even made products for horses.

“We were very distracted and focusing on too many activities,” he said.

The company spent the next 12 to 18 months killing off products to focus on the core business of urology.

“By the sheer focusing of the mind, we were able to get a better performance because people were more focused on what they were doing. We were doing less but doing it better.”

There’s a lesson here for startup founders, too.

"You don't have to build a massive platform for a whole therapy indication area. You need to make a decision on what aspect of healthcare you're going to make a change in. And when you do it well, and do it in a way that the customer gets it, then you will be successful," said Mr Ang.

Only the paranoid survive

The nature of disruption is such that the next device that could destroy a company’s product is probably already being created in the market now. Those in the medtech industry have to continuously learn and be curious about what might eat their lunch, Mr Ang said.

“One of our businesses is in the area of treating kidney stones. We have a product that’s already on the market today, but we have actually invested in a product that could potentially disrupt this market.”

At the same time, companies need to make sure that their products are continuously improving. Mr Ang often says that no manufacturing process is a 100 per cent sound – if you’re looking for a product that will not fail, you end up not shipping any products at all.

But having launched a product commercially, a company must relentlessly strive to make their products better while keeping an eye on disruption.

In the words of former Intel CEO Andrew Grove, “only the paranoid survive”, said Mr Ang.

Source: The Business Times © Singapore Press Holdings Limited. Permission required for reproduction.