COMBAT METHAMPHETAMINE EPIDEMIC ACT - REPORTING

UNCLAS SECTION 01 OF 02 SINGAPORE 000086 SIPDIS STATE FOR INL JOHN LYLE JUSTICE FOR OIA AND ARMLS TREASURY FOR FINCEN DEA FOR OILS AND OFFICE OF DIVERSION CONTROL CIA FOR CNC SENSITIVE SIPDIS E.O. 12958: N/A TAGS: KCRM SNAR ECON ETRD PREL SN SUBJECT: COMBAT METHAMPHETAMINE EPIDEMIC ACT - REPORTING RESPONSES REFS: A) STATE 686 B) 07 SINGAPORE 1989 C) 06 SINGAPORE 3654 ¶1. (U) Per Ref A instructions, this message contains information needed by the Department as part of the Control Methamphetamine Epidemic Act (CMEA) reporting and certification process. Regulatory Environment -------------- ¶2. (SBU) The Singapore Central Narcotics Bureau (CNB) is responsible for the monitoring and control of pseudoephedrine and ephedrine, two precursor chemicals covered by the CMEA. Singapore is one of the signatory countries to the 1988 United Nations Convention Against Illicit Traffic in Narcotics and Psychotropic Substances. In compliance with the UN 1988 Convention, the Government of Singapore (GOS) amended the Misuse of Drugs Act (Chapter 185) in 1998 to control the manufacture, supply and possession of precursor chemicals and to provide regulations on the import, export and transshipment of these chemicals. Singapore participates in multilateral precursor chemical control programs, including Operation Purple, Operation Topaz, and Operation Prism. The CNB works closely with DEA to track the import of precursor chemicals used in the manufacture of controlled drugs (Ref B). ¶3. (SBU) To date, Singapore has reported no diversion of precursor chemicals used to manufacture methamphetamine. Nor has the CNB reported the seizure of any domestic clandestine methamphetamine laboratories in Singapore. The GOS is considered to be largely free of corruption and neither the government nor any senior government officials engage in, encourage or facilitate the production or distribution of narcotics or other controlled substances, the diversion of precursor chemicals or the laundering of proceeds from illegal drug transactions. Singapore's Corruption Practices Bureau (CPB) actively investigates all allegations of corruption at all levels of government. Pharmaceutical Growth Fuels Demand for Precursors -------------- -------------- ¶4. (U) Singapore's position as one of the world's largest importers of ephedrine and a significant importer of pseudoephedrine parallels rapid growth of the pharmaceuticals and biomedical sectors. In an effort to diversify its economy, the GOS has embarked on a strategy to make Singapore a regional hub for knowledge-intensive and innovative industries. In particular, the government actively promotes the life sciences and biotechnology sectors, including pharmaceuticals and fine chemicals. Statutory Board JTC Corporation (under the Ministry of Trade and Investment) spent approximately US$330 million to create Phase I of "Biopolis," a state-of-the-art biomedical research hub that opened in 2003. Similarly, JTC invested nearly US$53 million to develop Tuas Biomedical Park, which serves as a magnet for pharmaceutical companies. ¶5. (U) Singapore currently has more than 25 pharmaceuticals manufacturing plants and includes among its investors many of the world's leading pharmaceutical and biomedical firms, including: Abbot Manufacturing Singapore, Aventis, CIBA Vision Asian Manufacturing and Logistics, Eli Lilly, Genetech Singapore, GlaxoSmithKline Biologicals, Lonza Biologics, Merck Sharp & Dohme (Singapore), Novartis Singapore Pharmaceutical Manufacturing, Pfizer Asia Pacific, Schering-Plough, and Wyeth Nutritionals (Singapore). SINGAPORE 00000086 002 OF 002 None of the global industry leaders produced pharmaceuticals in Singapore seven years ago. On a combined basis, pharmaceutical and biomedical companies have invested approximately US$19 billion in Singapore. GlaxoSmithKline, for example, recently invested more than US$990 million to enhance its vaccines business. On a combined basis, the pharmaceuticals industry currently accounts for nearly eight percent of Singapore's GDP, up from less that one percent in ¶2000. ¶6. (U) Much of Singapore's pharmaceutical production is for export, particularly the United States and Europe. Exports from other Asian countries also flow into Singapore for re-export. Growth in U.S. imports from Singapore has been strongest for pharmaceuticals since the U.S.-Singapore Free Trade Agreement came into effect January 1, ¶2004. Imports of such products jumped from US$0.09 billion in 2003 to US$2.4 billion in 2006. During the first nine months of 2007, imports of pharmaceuticals from Singapore reached US$2.2 billion, an increase of 26.4 percent over the corresponding period in 2006. The majority (98 percent) of these imports were cardiovascular medicaments. ¶7. (SBU) We have asked CNB to provide updated data on Singapore's trade in ephedrine and pseudoephedrine (Ref C) and to confirm when Singapore will report its annual licit market requirements for the abovementioned precursors to the International Narcotics Control Board (INCB). We will report these findings septel. HERBOLD