Singapore: Taiwan's pharmaceutical market will expand in value from USD5.4 billion in 2013 to reach approximately USD8.4 billion by 2020, predicts research and consulting firm GlobalData.

According to the analysis, foremost challenges faced by Taiwan include diplomatic isolation, high expenditure and inefficient distribution of healthcare facilities.

According to Mr Joshua Owide, director of healthcare industry dynamics, GlobalData, remarked that the diplomatic situation with China came further under the spotlight following the results of local elections in November 2014.

Mr Owide further explains, "The trade agreement with China in June 2013 has had a negative effect on President Ma Ying-Jeou's popularity, as many people in Taiwan fear it is a step towards reunification with China, and some believe that the free trade pacts will destroy local small businesses."

"Taiwan has signed a free trade agreement with the US, which is expected to positively impact the market, while government incentives, such as low taxation, make Taiwan a lucrative place for foreign investment. Biotechnology and pharmaceutical companies receive deductions from income tax liability for undertaking R&D into new drugs and high-risk medical devices, among other tax incentives, further boosting market growth."