Singapore’s technology sector has been thriving for a long time now, getting recognition not only in Asia but across the world as well. Its government made the country a haven for the latest technological developments, ventures, and business, making it an undeniable force in the field.
The development in Singapore’s technology has indeed been driven by government efforts as well. In fact, it recently earmarked 40 million Singaporean dollars—which is equivalent to 29.3 million US dollars—to fund research and development projects for 5G. Simultaneously, the government is implementing business-friendly regulation and policies for investments in Singapore’s technology sector.
The Singaporean government is also committed to allocate 1 percent of its gross domestic product—or spending—at 1 percent every year for research and development. It recently pledged to put in 19 billion Singaporean dollars to fund scientific and technological research under its Research Innovation and Enterprise Plan.
On top of these, Singapore’s technology sector has been flourishing because of the following:
- It is strategically located among Asia’s biggest markets.
- It has a low-tax regime for businesses.
- It has well-developed information technology (IT) infrastructure.
- It has many investment opportunities.
- It has a sound regulatory regime.
With these, it is no wonder why there are many IT companies Singapore is proud of.
Singapore’s Technology Sector Landscape
The IT ecosystem in Singapore is vast, with several key growth areas. Indeed, there are many areas where you can venture if you wish to enter Singapore’s technology sector. Remember, however, that you have to study carefully which one you are going to focus on. IT as a field has a lot to offer, so you have to choose wisely. Here are the four major IT segments you can participate in:
These are considered as the building blocks for the IT sector’s entirety. Semiconductors are being used to develop essential consumer electronic products such as personal computers, smartphones, and tablets. It should be noted, however, that it is a highly capital intensive venture.
Hardware and Equipment
This refers to the manufacturing of different hardware of technology products. Its growth is dictated by the trends in demand for consumer electronics.
It is a process of designing, programming, and testing applications, frameworks, or other software components to be used in a computing device. Basically, it is computer instruction or data that allows a personal computer to function.
Internet and Gaming
The global computer network can now provide a vast amount of information via different platforms and communication facilities. Internet penetration has been on the rise, thanks to increasing usage of smartphones and tablets.
Advancements in the Financial Industry
Singapore is also getting recognition for its booming financial technology, or the so-called fintech, industry. Fintech refers to a digital platform that allows users to do basic banking services, including fund savings, money transfer, and bills payment, among others.
There has been a further increase in demand for digital platforms in 2020 amid the lockdown restrictions due to the coronavirus pandemic. Basically, the people shifted to using digital platforms to accomplish their usual transactions. That way, they can safely transact at the comfort of their homes. This trend is seen to continue even after the pandemic is gone, experts say. So, it is only wise to invest in the fintech sector.
Singapore has over 490 fintech startups currently. In the first nine months of 2019, they raised 735 million US dollars, which is nearly 70 percent higher compared to the amount raised in the same period in 2018, according to a report by Accenture.
Some of the top fintech startups in Singapore include Validus Capital, Everex, Sherelt, BetterTradeOff, Toast, TranSwap, Quione, FundedHere, Hatcher+, PolicyPal, and Silent Eight.
Singapore’s technology sector for financial services is also greatly supported by the government. The Monetary Authority of Singapore allocated 225 million Singaporean dollars further to develop the industry in the next few years. At the same time, the government is highly interested in creating its own artificial intelligence hub, investing 150 million Singaporean dollars for industry research.
IT Services For Your Company
If you need IT services for your company, do not hesitate to reach out to IT Solution. We are an IT service provider in Singapore, ready to help you and your company. Contact us today.