AGUIDETHE INNOVATIONTOECOSYSTEMOFSINGAPORE

1This guide gives you a brief introduction to the Singaporeaninnovation ecosystem.
The guide presents the main business opportunities, the mostimportant leads, and most interesting stakeholders, as seenfrom a Danish perspective. We give you a realistic understanding of the local startup scene, based on first-hand experience,

PREFACEand on-the-spot dialogues.
This publication has been developed by Asia House andTechBBQ as part of a series of guides to innovation ecosystems in the China Bay Area and Taiwan, India, Japan, Korea,and Singapore.

This guide gives you a quick introduction to theSingaporean innovation ecosystem, presenting the main
business opportunities, the most important leads andmost interesting stakeholders, as seenfrom a Nordic perspective.

The series is published as part of the non-profit initiative
Innovation Lab Asia to improve and enhance cooperation between Danish and Asian innovation ecosystems. The project is
supported by the Danish Industry Foundation.
For further information and guidance, contact:
ASIA HOUSEPeter Johansen, Project Manager

TECHBBQ
Lisa Mallner, Lead ConsultantMAIL
hello@innovationlabasia.dk23WHY SINGAPORE?

Singapore seems to have it all. The city is cleanand safe, with breezy spots and good infrastructure.
People are generally well educated, the population
is diverse, and it is the 5th most popular destination for expats. Government agencies are transparent, policies are friendly to entrepreneurs, andthe official business language is English. It’s alsorich, with a GDP per capita twice the size of Denmark.

Singapore is situated at the very heart of Southeast Asia,
making it the ideal stepping-stone to neighboring markets
and a prime location for the headquarters of multinational
corporations and organizations.

45

SINGAPORE, KING OF RANKINGS•# 2 World Economic Forum global competitiveness index•# 2 World Bank ease of doing business index•# 2 Smart City Government index•# 3 Transparency International corruption
perceptions index•# 4 Global Financial Centre’s Index of mostefficient financial hubs•

# 5 Global Innovation Index for capacity andsuccess in innovation

From a startup point of view, Singapore has some obvious
attractions. Key to Singapore’s global success has been its
focus on innovation, and its ability to attract foreign directinvestment. Today Singapore has a strong talent base, and is a
global financial center, attracting startups far and wide to raise
capital. Singapore regularly sees upward of USD 3.5 billion in
VC investment in a single quarter.
On the downside, Singapore is one of the most expensive cities
to live in; not great for early stage startups. Also, due to its
strong ecosystem and favorable policies, startups from aroundthe world are trying to make a name in Singapore. Competition
is intense, and key-decision makers may be hard to reach,even sometimes blasé. Thus, early stage foreign startups
must temper their expectations and need to be patient andpersistent while knocking on doors.
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MAIN ECOSYSTEM OVERVIEWSINGAPORE•

8

The city-state of Singapore is consistently
ranked as one of the wealthiest and mostadvanced societies in the world. It has avibrant innovation ecosystem, with a strong
investor presence, transparent governance,
the world’s second largest port, and theentire ASEAN region at its doorstep.

9THE
ECOSYSTEM
AT A GLANCESINGAPORE

Singapore is one of the world’s most dynamic innovation
ecosystems, benefitting from good governance, pragmatic
policy, and a strong VC environment.

Unlike many other countries, Singapore allows foreigners toown 100% of their companies, meaning you don’t need local
partners to establish a company. In most cases, you can also
operate your business from your home country, avoiding thehigh cost of living in Singapore. That said, if you’re considering
using Singapore as a launch pad into Singapore or any of theneighboring countries, e.g. Malaysia, Indonesia, or Vietnam,
you still need to allocate considerable time and resources tolocal teams and partners.

1011

STARTUP GENOME ON SINGAPORE•

Ranks # 4 globally for availability of VC•

Ranks # 4 as the global ecosystem for
Blockchain•

Ranks # 5 as the global ecosystem forFintech•

Ranks # 14 on top global startup ecosystems

The Singaporean government has launched several highly
supportive schemes, including the Startup Tax Exemption
Scheme,theSlingshot@Switch

competition,andtheEntrepass visa scheme. Thus, if your startup is headquarteredin Singapore, the first USD 73,000 of income generated is taxfree, you may deduct R&D expenses, and there is no capitalgains tax. In addition, startups will find specific schemes forselect verticals, such as Deeptech and Greentech.
Another main attraction of the Singaporean ecosystem isthe prospect of funding. Recent unicorns like Grab (originallyfrom Malaysia), and Trax (Israeli founded), have establishedthemselves in Singapore due to the access to VC and regional
markets in Asia and Southeast Asia. In addition, Singapore has
several popular crowdfunding platforms, such as MoolahSenseand FundedHere.
However, these advantages have also created a distorted
picture of Singapore as a startup center. While many
entrepreneurs choose to have their HQ in Singapore inorder to raise venture capital and enjoy the benefits of goodSingaporean governance, it is common to find the bulk of theirteams and much of the actual innovation within the market
they are launching in.
1213

THE

SINGAPOREAN

MARITIME

MAIN LEADS
Copenhagen Fintech and the Danish Embassy inSingapore have created the most successful Danish casestory for startups looking to Asia, establishing astrong platform for Fintech collaboration. However,Singapore’s reputation as being the easiest accesspoint to Asia for international startups has paved
the way for several other strong Nordic platforms
that may have relevance for Danish startups, andnot just within Fintech.

•Copenhagen Fintech has been spearheading cooperation

SECTOR•

Singapore has the world’s second largest
container port•

There are around 1,000 vessels in theSingapore port - at any given time!

•A ship arrives or leaves Singapore every
2-3 minutes•

Singapore is connected to a total of 600
ports in more than 120 countries•The maritime sector contributes to around
7% of Singapore’s GDP

The Nordic Innovation House Singapore opened inAntler is an accelerator and VC for early-stage start-

between Denmark and Singapore for more than four years

September 2018, providing Nordic startups and scaleups

ups founded

entrepreneur

up program in Singapore focused on shipping and logistics

and offers services to Fintech companies looking to landwith a soft-landing pad in Southeast Asia. The Innovation

Magnus Grimeland in Singapore. Antler has since expand-in 2018. The first area to be addressed is AI within trans-in Singapore from Denmark and vice-versa. Copenhagen

House mainly accommodates startups during the first 6-12

ed to 8 locations, including Stockholm and Oslo. The Sin-port. Rainmaking has been in Singapore for around 5 years,

Fintech has partnerships with the main Fintech ecosystemmonths of their arrival in Singapore, but their services ex-gapore team includes many Nordic employees, making

in sectors such as Energy and Fintech working under theplayers in Singapore, including a cooperation agreement

tend beyond this period. The house can help companies

them particularly equipped to understand how to bridge

Startup Bootcamp accelerator program, and has built up an

between the Danish Financial Supervisory Authority andconnect with local partners and gain an understanding

Nordic startups into the local ecosystem. Entrepreneurs

understanding of how to build startup success in the region

the Monetary Authority of Singapore to help companiesof the market through their own extensive local network.

•in2018

by Norwegian•Rainmaking made the first efforts to establish a new start-and companies can apply to the accelerator through afrom the perspective of Nordic stronghold areas. Rainmak-

expand into each other’s markets and explore joint

simple process on Antler’s website. Antler additional-ing works primarily with mature startups with a validated

innovation projects. For any Fintech company looking toly shares office space with the Nordic Innovation House

POC, and can help companies connect with the top mari-expand into the Asian region, Copenhagen Fintech is aSingapore, and both organizations collaborate closely.

time and logistics firms globally.

one-stop shop.
1415

OTHER LEADS
Innovation Lab Asia has established contacts withseveral interesting organizations in Singapore thatmight prove relevant for Danish startups. We canfacilitate further contact if needed.

•SG Innovate is a program set up by the government ofcorporate partner already active in the ASEAN region.

Singapore to support Deeptech startups. Though publicly

Though Padang & Co often do their own startup scout-funded, it is run as a private company, so the management

ing, they host many startup community events and areteam can engage in experimental and flexible ways of sup-open to connecting with startups from all over the world.

porting startups. SG Innovate will help any Deeptech startup in Singapore with everything from investment to talent•The Singapore Economic Development Board (EDB)

development to recruitment, and additionally works to build

is one of Singapore’s leading public agencies promoting

the AI ecosystem in Singapore through activities such as

international investment and startups to Singapore. Whilepartnerships, events, and hackathons. SG Innovate collab-

they mainly collaborate with larger tech companies and theorates with the European AI Alliance and has experience

manufacturing sector, EDB will work directly with startups

helping European Deeptech companies land in the region.

if they are related to important business sectors like Digital tech, Cleantech, Biotech, and Healthcare. EDB works•Padang & Co is a company that helps corporations

closely with Enterprise Singapore to attract top entrepre-

co-create with startups. They are supported by Unile-neurs and startups to the region and can help startups learnver, and generally work with startups relevant to Unile-

about the right business and policy schemes to tap into.

ver’s core business. As access to the Singaporean market can be difficult due to intensive competition, Padang& Co can help startups enter the market with a strong
1617

OTHER GATEWAYS &ACCESS POINTS•The Singapore Week of Innovation and Technology•

Early Stage Venture Fund (ESVF) is a state-run fund(SWITCH) is the largest startup event in Singapore, withhelping small high-tech companies in Singapore grow12,000 attendees gathering for a weeklong event fo-through co-investments by the Singapore government

cused on innovation, especially within Deeptech. SWITCH

and local private-sector players. The fund brings in ven-merged with the Singapore Fintech Festival in 2019 toture capital firms to help grow the ecosystem by match-provide better networking opportunities for participants.

ing VC investments in early-stage tech startups on a

The Slingshot@Switch event, organized by Enterprise

1:1 basis. The fund has invested nearly USD 74 million

Singapore and Startup SG, is a competitive pitching com-

into Singapore-based startups. Success stories include

petition held at the event to help startups showcase to in-

HungryGoWhere, Ninja Van, Brandtology, and YFind.

vestors, with winners receiving grants and free workspace.

•Startup SG Equity is a scheme in which the Singaporean government will co-invest with independent, qualified 3rd party investors into eligible startups based in Singapore. The program is open tostartups in all sectors, but is especially focused on
Deeptech, Health, Smart cities, Advanced Manufacturing, and Greentech. Applications are on a rolling basis.

1819

STRONGHOLDS& OPPORTUNITIESThe Singaporean startup ecosystem mirrors Singapore’sstatus as a financial hub and is very focused on Fintech. The
Monetary Authority of Singapore (MAS) is a strong supporter ofinnovation within the financial sector and Blockchain is a major
focus point. Singapore ranks third in size of ICOs (Initial CoinOfferings).
Maritime Tech is another classic Danish stronghold and with
Singapore’s position as one of the busiest ports in the world,
this is a very attractive place for startups that work withmaritime technology.

2021

FINTECH•

As a major financial hub, it is no surprise that Sin-MARITIME TECH•Based on funds raised, Singapore is the fifth largest market

gapore’s startup ecosystem is strong within finan-

in the Asia-Pacific in 2018. The amount of funds raised wascial technology. The Fintech ecosystem is undoubt-

USD 365 million in 2018, more than double the previous year.

edly the most famous feature of the Singaporean•

economies and strong maritime sectors.

The government of Singapore has launched PIER71, anacceleration program that aims to support tech startups
and foster innovation in the maritime industry. PIER71 is•Singapore has the second busiest port in the world anda collaboration between the Maritime and Port Authority

one of the highest degrees of innovation. The Maritime

and NUS Enterprise, the startup arm of the National Uni-

launched a so-called “Fintech Fast Track” program

startup scene in Singapore is a place where one would

versity of Singapore.

that lets Fintech companies efficiently apply for pat-

expect to find some of the frontier solutions in maritime

The government is a strong supporter of the Fintech sector

ents. The purpose is to support the Fintech ecosys-technology.

and provides a range of initiatives and support programs. The

tem and foster new innovations by enabling startups

Monetary Authority of Singapore, the central bank and finan-to market and commercialize their solutions faster.

•tion labs in Singapore alone and 500+ Fintech startups.

The

IntellectualProperty Officeof Singaporethat provides attractive regulations and solid infrastructure.

••

The Danish VC and startup accelerator Rainmaking haslaunched a new Transport & Logistics program in Singa-•

The world shipping industry has pledged to be totally car-pore that connects startups with the largest companies

bon neutral by 2050, and Singapore’s maritime heavy-in the Maritime industry to work together toward reaching

Singapore is home to the biggest Fintech event in the world.

weights are actively seeking startups working on innova-

sustainability goals.

In 2018, the annual Fintech Festival attracted more thantions within decarbonization.

cial regulatory authority of Singapore, is a key stakeholder•Singapore and Denmark are both small nations with open

hasstartup ecosystem with more than 40 Fintech innova-••

According to Reuters global Fintech ecosystem ranking,

45,000 attendees from 130 countries, making it a natural

Singapore has surpassed Hong Kong as the main Fintech

platform for startups wanting to connect and understand

hotspot of Asia. A regulatory sandbox for Fintech innova-

what Singapore’s Fintech ecosystem has to offer.

•The Maritime and Port Authority (MPA) of Singapore is thenational government body in charge of the maritime busi-

tion provides an environment where startups can test theirness sector and has been very active in nurturing innova-

products safely before launching.

tion in the maritime sector. It has a great number of partners, MOUs, and collaborations locally as well as abroad
and is constantly expanding its international network.

2223

This report has beendeveloped by

In a collaboration
betweenWith support fromAsia House
24|

Indiakaj 16, Copenhagen|www.innovationlabasia.dk|

hello@innovationlabasia.dk