Singapore is the most competitive economy in the world (IMD, 2019), as well as the most advanced and stable country both in political and financial terms in the Southeast Asia. It ranks second in the world for investment potential, and third in openness to international trade.
On top, the proactiveness of its government to attract FDI, its commercial aperture, tax incentives, stability, fierce legal protection of intellectual property rights, intelligent design, lack of corruption and being the only Asian country with AAA credit rate; has made of Singapore one of the most attractive destinations for traders and investors globally, as well as the main business Hub in Southeast Asia for finance, oil and gas, construction, shipping, medical services, and technology.
|ECONOMIC INDICATORS||2015||2016||2017||2018||2019 (forecast)|
|GDP (USD billion)||$304.10||$309.80||$323.90||$361.00||–|
|GDP per capita (USD)||$55,647||$56,724||$60,306||$64,048||–|
|GDP growth rate||2.20%||2.40%||3.70%||3.10%||0.00 – 1.00%|
|Consumer Price Index||-0.60%||0.20%||0.60%||1.70%||1.13%|
The local business culture reflects a steep trend towards ecology, green building, functionality and connectiveness; being necessary to obtain all the pertinent Green Labels, licences and local partners established by its legislation before being able to operate in the country.
The commercial mindset is deeply rooted in the win-win-win approach, with personal networking and proven track records being of great importance to enter the market.
|1||World competitiveness 2019|
|1||Global Smart City Performance Index 2017|
|2||Ease of Doing business 2019|
|2||Index of Economic Freedom|
|3||GDP (PPP) per capita 2018|
|3||Densely populated countries in the world 2019|
|7||E-Government Development Index|
|7||Human Development index 2018|
PUBLIC INVESTMENT IN THE SMART CITY
Singapore’s public investment and legislation reflects its long term plan to become the first Smart Nation in the world, and the World’s Greenest City, allocating 19 billion dollars to R&D in its 2020 Plan, mandatory green building legislation for all developments in 2008, more than 700 km of lanes for personal mobility devices by 2025, and investing strategically to keep on building an “intelligent infrastructure” with interconnected sensors and innovative analysis technologies.
To manage its growth and achieve its goals, the Government has established a closely interconnected net of branches such as the Urban Redevelopment Authority (URA), which designs the purpose of the entire land, the House Development Board (HDB), which develops over 80% of all housing in the country, the National Environmental Agency (NEA), or the Smart Nation Platform, among others.
For all the above, together with its commitment to innovation and life quality standards, Singapore is considered a “Living Lab” for innovation, where key companies can implement their solutions and ideas and test their potential global use for the smart city in data-driven public safety, intelligent transportation, resilient energy and infrastructure, civic engagement, and sustainable planning and administration.
|Singapore named Smart City of 2018|
|From 2005 to 2014 the number of start-ups in Singapore more than doubled from 24,000 to 55,000|
|Singapore targets to have 80% of its buildings certified as sustainable under its Green Mark scheme by 2030|
|Public investment in R&D has grown from SGD 2,000 million in 1995 to SGD 19,000 million in the 2020 Plan|
|Smart Mobility 2030 Plan target: 75% of Journeys Made on Public Transport During Peak Period|
Singapore is a mature market with a pool of very well established players controlling the main import and distribution channels. Thus, penetration through direct sales is unlikely to happen. Local companies require strong commitment and direct investment from suppliers in order to include them in their portfolio.
For all this, the most used penetration formula is through distribution or agency contracts where suppliers commit actively to participate closely with their local partner in both the marketing and commercialisation of their products.
If Singapore is your dream Smart City, drop us an email with a brief explanation of your product or project, including questions, objectives etc. so we can study whether we are the right partner for you and come back with a customised proposal.