Despite belt-tightening in other sectors, analysts expect biomedical sciences research spending to increase.

'People may cut back on electronic goods in an economic downturn, but not on treatment if they are ill,' said Mr David Cohen, an economist from Action Economics.

Analysts have predicted that spending will swell to an estimated 10 per cent of manufacturing R&D spending in three years, up from 6 per cent.

The reason: Plants commissioned during the biomedical boom year of 2006 are ready to roll, attracting jobs and research dollars into areas such as drug development and medical technology.

None of the five major players interviewed by The Straits Times said they would cut back on R&D spending here, with three of them saying they had plans to expand research, including starting more trials for potential drugs, and hiring research staff here.

Director of R&D at environmental and human health technology company PerkinElmer, Mr Anthony Fernando, said that the company was still going ahead with plans to increase R&D efforts in its environmental health business by 5 per cent for next year.

However, Mr Fernando added that these plans could change. 'We hope the economy will hold as it is and not get any worse. Obviously, we will have to make adjustments depending on how things go in the coming months,' he said.

Life sciences research has been given priority over the last decade, with a few billion dollars being pumped into the sector. The idea is for the sector to create wealth, jobs and a buzz about Singapore over the long term - $25 billion in production and 15,000 jobs by 2015. Last year's output hit $24 billion.

Last year's figures for biomedical sciences research emerge from a research spending boom in 2007, when a record $6.33 billion was pumped into total R&D spending.

The Government has stressed that the research will remain a key focus here, despite belt-tightening in other areas during the current economic downturn.

'We must maintain a long-term view for R&D, which is essential for building underlying capabilities and will ensure we are in good position to take full advantage of the upturn when it comes,' said Ms Yena Lim, managing director of A*Star.

In 2006, the industry pumped a record $293 million into research, when four companies announced they would build five biologics plants here.

The latest figures, which come from A*Star's annual R&D survey, show that the private sector remains the key player in the industry, responsible for two-thirds of research spending.

While R&D spending in the electronics sector took the lion's share of $2 billion last year, future funding is shakier, said analysts.

Barclays Capital economist Leong Wai Ho, for example, expects its share of research spending to go down to about 65per cent by 2010, due to the cyclical nature of the sector with its fluctuating demand for products.

The bright spark in the long term is R&D in the biomed cluster, which includes newer ways of producing drugs.

'We have new plants which are opening up here in 2009 , in the field of biologics, which tends to be more R&D-intensive than traditional pharmaceutical plants and less tied to global business cycles,' said Mr Leong.

'As they materialise, these investments should continue to hold up private research budgets, despite the deepening economic crisis.'

Biologics are the next big thing in drug-making where biological components, such as genes, proteins and cells, are used to make drugs. The old-fashioned way uses chemicals.

The pioneer of biotechnology, Genentech, is the first of four global biologics companies here to start operations at its Tuas plant this month.

R&D as a percentage of Singapore's gross domestic product last year was a record high of 2.61 per cent, in line with its 2010 target of 3 per cent.

wycin@sph.com.sg