Life Sciences
Sections: Overview Project activity Key considerations
Life Sciences
Sections: Overview Project activity Key considerations
We are seeing a considerable rise in Life Sciences projects in the APAC and GCC regions as investment initiatives encourage strategic hubs that host crucial advanced manufacturing and construction capability.
Stephanie Ledwidge Associate - Life Sciences Southeast Asia
Overview
APAC and GCC are strengthening their position as a global biopharmaceutical hub, supported by cutting-edge R&D, strategic investments, and evolving healthcare demands
The region’s R&D and manufacturing landscape is accelerating, fuelled by government initiatives and shifting regulatory dynamics. Sustainability remains a priority, with renewable energy playing a key role in reducing GHG emissions and meeting Environmental, Social and Governance (ESG) targets. Reliable power and ample utilities are critical site selection factors, ensuring operational efficiency and productivity. Advanced manufacturing and construction technologies are helping to optimising efficiency. Skilled labour shortages and supply chain uncertainty remain ongoing challenges across the region amid a rapidly evolving geopolitical landscape.¹
Evolving R&D landscape
The APAC region is emerging as a key player in mRNA vaccine development, driven by a mix of high population density, rising biotech investments, and proactive government policies. The expansion of mRNA technology is transforming treatments for diseases like cancer, while the rise of decentralised clinical trials (DCTs) is making research more accessible across diverse markets, reshaping the sector’s R&D landscape.
Breakthroughs in cell and gene therapies are driving advancements in rare disease treatments, while the rise of biosimilars is making biologics more affordable. Meanwhile, the integration of genomics and AI is accelerating personalised medicine, offering more precise and targeted treatments.
Out of 6,823 R&D firms globally in 2025, Asia-Pacific (excluding China) currently accounts for 16% of R&D companies with headquarters in the region. Within this, South Korea leads, hosting 413 companies and also has the highest percentage of pharmaceuticals under development. At 14.2%.² Australia, Japan, and Taiwan are also key hubs, driving significant pharmaceutical development activity across the region.
Advanced manufacturing and construction trends
The adoption of offsite fabrication and Design for Manufacture and Assembly (DfMA) is accelerating, with Singapore spearheading initiatives under its construction Industry Transformation Map (ITM) to improve efficiency in the industry.
Government Support
- Governments in the Middle East are making significant investments in life sciences, with national healthcare programs, research funding, and incentives designed to support pharmaceutical and biotech companies. The KSA’s Vision 2030 and the UAE's National Strategy for Advanced Innovation both aim to enhance healthcare infrastructure and promote biomedical research. In the 2025 federal budget, the UAE earmarked AED5.51bn or US$1.5bn for healthcare and community wellbeing.³ Abu Dhabi has introduced the Health, Endurance, Longevity, and Medicine (HELM) cluster, a new life sciences initiative focused on biotechnology, medtech, and digital health. The cluster aims to support healthcare innovation, attract global investment, and contribute to improved health outcomes.
- In January 2025, Japan’s Ministry of Health, Labour, and Welfare launched a decade-long funding program to boost the development of new medicines, reinvigorating the country’s focus on healthcare innovation. This initiative is one piece of a broader effort to strengthen Japan’s pharmaceutical sector, a process that has been underway since the creation of the Japan Agency for Medical Research and Development (AMED) in 2016.⁴
- Taiwan is actively strengthening its life sciences sector through strategic collaborations and partnerships with global healthcare leaders. These efforts focus on advancing medical innovations, including mRNA vaccine technologies, and enhancing the country’s ability to address public health challenges.
Sustainability and green manufacturing
- Sustainability is at the forefront, with green biomanufacturing practices shaping the future of environmentally conscious healthcare.
- ESG factors are becoming central to investment strategies. As regulatory pressures and sustainability demands grow, life sciences companies are aligning with ESG principles to mitigate risks and secure long-term growth, gaining a competitive edge in an increasingly complex market.
Project activity
The region’s life sciences project landscape indicates a strong pipeline of activity.
India leads the way in biopharma projects, with the most planned initiatives, followed by Japan and South Korea. Australia maintains moderate activity, concentrating on the design and planning stages.⁴
India's pharmaceutical sector is likely to benefit from the BIOSECURE Act, as US companies look for alternative locations for Contract Development and Manufacturing Organisations (CDMO) in the APAC region. With cost advantages and government incentives like the Production-Linked Incentive (PLI) scheme, India is well-placed for growth, particularly in specialized biologics and therapies. Meanwhile, Japan is revitalizing its pharmaceutical sector through the JPMA Industry Vision 2025, which includes launching clinical trials for previously unavailable drugs.
The Masdar City Free Zone in Abu Dhabi is emerging as a centre for biotechnology innovation, with state-of-the-art research facilities, leading CROs, and strong government support from the Abu Dhabi Department of Health (DoH) and the Abu Dhabi Investment Office.
Several R&D facilities are also planned or underway across the APAC region, but most notably in Australia and India.
Key considerations
01
Diverse regulatory frameworks
Across the APAC region, regulatory systems differ significantly, with each country maintaining its own distinct standards and procedures. For Instance, Japan's Pharmaceuticals and Medical Devices Agency (PMDA) closely aligns with the US’s FDA, and India’s Central Drugs Standard Control Organization (CDSCO) are reforming their processes to improve market access. Understanding local regulations, engaging early with regulatory authorities, and collaborating with local experts are crucial for navigating regulatory challenges.
However, significant progress is being made toward harmonization through initiatives like ICH (The International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use), ASEAN ( Association of Southeast Asian Nations) and Project Orbis. These efforts are reducing approval timelines and fostering local biotech innovation especially in countries like South Korea and Singapore that align with international standards.
02
Labour shortages
Skilled labour shortages are a growing concern across the construction and life sciences industries. According to a report by Manpower Group, the life sciences sector in APAC faces a 77% talent scarcity.⁵ Developed economies like Australia, Japan, and Singapore are already grappling with construction workforce shortages, and recent policy changes in Singapore, such as the reduction of the Dependency Ratio Ceiling (DRC) and the removal of the Man-Year Entitlement (MYE) framework, are further tightening labour supply, adding pressure to an already strained talent market.
03
Supply chain uncertainties
In response to supply chain vulnerabilities, biopharmaceutical companies are investing in reshoring and nearshoring efforts. Geopolitical tensions could lead US pharmaceutical companies to move their operations. The APAC region with its improving infrastructure, and supportive policies, is well-positioned to attract these companies looking to diversify their supply chains.
Sources
- Decarbonizing API manufacturing: Unpacking the cost and regulatory requirements, McKinsey & Company, July 26, 2024
- Pharma R&D Annual Review 2025, Citeline
- Federal General Budget Annual Report 2025, Ministry of Finance, UAE
- Global data
- 2025 Global Talent Shortage, Manpower Group
Disclaimer
This report contains information, data, and analysis related to the construction industry. While we strive to provide accurate and up-to-date information, it is important to note that the market is subject to various factors, uncertainties, and changes that may impact the accuracy or reliability of the report's contents. By using the report, you acknowledge and agree that Linesight assumes no responsibility or liability for any inaccuracies, errors, omissions, or losses that may arise from your reliance on the information presented in the report.
It is essential that users exercise their independent judgment, conduct their own research, and seek professional advice before making any decisions based on the information contained within the report.
Any user of this report, by their acceptance or use of this report, releases Linesight, its parent corporation, and its and their affiliates from any liability for direct, indirect, consequential or special loss or damage whether arising in contract, warranty, express or implied, tort or otherwise, and irrespective of fault, negligence and strict liability.
No section or element of this document produced by Linesight may be removed from this document, reproduced, electronically stored or transmitted in any form by parties other than those for whom the document has been prepared without the written permission of Linesight.
© Linesight
© Linesight