Singapore is fast becoming a leading logistics hub for Asia's clinical trials sector - a market worth some US$400 million today.

According to Channel News Asia, third-party logistics players say the city will play an increasing important role as drug companies worldwide look to Asia's ethnic diversity and large populations for drugs and medical devices testing.

But they say there is a need to improve Singapore's cold-chain expertise, as well as information technology and telecommunications infrastructure.

Global drug-makers are increasingly looking to test their drugs and medical devices in Asia.

That is partly because the population in this region - in particular China and India - has never been treated with advanced drugs.

And Singapore is seen as a good hub to send and receive test kits, samples and other medical products.

Humberto Florez, CEO, DHL Exel Supply Chain, Asia Pacific, said, "The pharmaceutical industry is one of the ones that's going to grow fastest around the world, especially in Asia Pacific. Our population is ageing, there's development in new products coming into the market...South East Asia, in particular in Singapore, is very well-located to be one of the centers of distribution for the pharmaceutical industries."