Conflicting laws are increasing the operating costs of multinational companies.
An analyst said that investors and stakeholders in the life sciences and healthcare industries should promote the regulatory reform in the Asia -Pacific region, because inconsistent rules in the region may hinder innovation.
Persons with stakeholders should cooperate with regulatory agencies and participate in policy formulation to curb market uncertainty. Li ZekaiThe partner of Xi Mengsi Law Firm and the head of the Ministry of Health Care and Life Sciences, the Medical Care and Life Sciences of Greater China, told us Asian healthcare.
“Although markets such as Japan, South Korea and Singapore have been in line with international standards, other countries are far behind,” he said. “Cambodia, Laos, and Myanmar are facing regulatory transparency issues.”
According to the October 2024 report of Simmons & Simmons, the Asia -Pacific region is the third largest and most favorable medical care investment destination in European companies and investors. But the inconsistent rules crashed their enthusiasm.
Li said that conflict laws will bring doubts and increase operating costs to multinational companies and investors. “There are fewer foreign investment facing developed markets,” he said, and added that investors should consult legal consultants to help them cope with a complex environment.
LI has more than 15 years of experience in consulting the life science and medical care industry. He will lack the lack of transparency to weak legal and institutional framework.
“Among them, the laws include inaccurate law, imbalance of rules, and lack of accountability and public participation,” he said. “Regulatory decisions are sometimes affected by political or economic interests, not based on clear and objective standards.”
“In some countries, there may be opaque traditions in government and business practice, which may extend to the regulatory process,” he added.
Li said that countries in the region should also coordinate their data privacy rules. “At least it takes a certain degree of coordination.”
Li quoted the EU's “General Data Protection Regulations”, and governments in the region can borrow mirrors. “This may lead to the use of general standards to promote smoother cross -border data transmission while maintaining strong protection.”
He added: “In view of the sensitivity of health data, the introduction of specific guidelines for life sciences to solve the trend of challenges related to the industry is becoming increasingly obvious.”
Li said that, given that the region has a large population and diversification, the life sciences and healthcare industries have provided opportunities. “In addition, clinical trial costs are usually lower than North America and Europe.”
A report from McKinsey said that a noteworthy example is China's global life sciences and healthcare license transactions, and its global share rose from 4% in 2019 to 12% in 2024.
“The report also predicts that by 2028, the value of China's innovative pharmaceutical market will reach $ 50 billion, becoming one of the three major markets in the world,” Li said.
He said that investors are also keen on the diagnosis and biotechnology of artificial intelligence. He pointed out that, for example, the medical system of the National University of Singapore and the National University is undergoing artificial intelligence projects to improve the accuracy of cancer diagnosis.
“Another important factor is population changes, especially the aging population of Japan and China,” Li said. “This trend will promote the increase in demand for medical care services, innovative drugs, and chronic disease treatment and management.”
