This blog has written a lot about Singapore in the past, this speech by the country’s Prime Minister sums it up.
For other nations, particularly Australia, it’s time to stay paying attention to how the global economy is changing.
Singapore may not have all the answers and its government’s authoritarian tendencies may work against its ambitions to be a global tech and creative centre, but at least the government is staking a position in the new economy.
Today Aussie incumbent telco Muru-D opening in Singapore.
Muru-D is loosely based on Telefonica’s Wayra incubators that the Spanish telco has set up across Europe and Latin America.
Wayra’s fortunes have been mixed recently with the incubators coming off badly in the company’s restructure last year and it’s interesting that Telstra are copying the model of opening in strategic neighbouring markets.
Complicating matters is Telstra’s Singapore based rival Singtel has its own chain of incubators Singtel Innov8. Singtel’s model is different in that they sponsor incubators, Sydney’s Fishburners for example, rather than set up their own Wayra or Muru-D style operations.
So Telstra’s moving into Singapore could be seen as another move by the Aussie incumbent to take on Singtel on it’s own home ground, something that will be assisted by the recent acquisition of PacNet.
Also notable is the Singaporean government’s support for Telstra’s with Kiren Kumar, Director of Infocomms & Media at the Singapore Economic Development Board, welcoming the launch as enhancing the city’s repuation as “the innovation capital of Asia”.
Telstra’s move is another showing how telcos are trying to move out of being utilities along with Telstra’s need to grow out of the domestic Australian market it now dominates.
For Telstra both moves are well outside the company’s historical expertise, it will be interesting to see how successful they are.
“What if we were to wire up every corner of Singapore?” Asked Steve Leonard, the Executive Deputy Chairman of Singapore’s Infocomm Development Authority, at the CommunicAsia 2013 Summit.
Two years later that question has been answered as the island state has covered the entire island with a fibre network, putting the country on course to create what Leonard describes as a ‘sensor fabric network.’
Speaking to Leonard ahead of his visit to Australia for the AIIA Internet of Things conference in Canberra later this month, it’s impressive what the IDA looks to do in building Singapore as a connected nation.
“We think we have an opportunity to use some of the natural advantages Singapore has,” Leonard says. “In this case being relatively small and an island. The idea that constraints mean creativity.”
One of the areas Leonard sees as an opportunity with the IoT is in the health care industry where chronic care care can be moved back into the community while hospitals and clinics can be used for acute patients.
One of the challenges for every city rolling out an IoT infrastructure is the plethora of standards, “we’re trying to think about IEEE standards and we’re trying to think about interoperable as possible with technology as it evolves.”
“Whether it’s East or West, Singapore wants to be a place where business can be done and people can be healthy,” says Leonard. “What we don’t want to do is develop a standard that might work for us but exclude us from something that originates in another part of the world. We want to be open to things that evolve.”
Becoming a connected city is key to being a leader in a connected world, “we’re always making sure we seek to have more wireless access points.” Leonard says, “we also have one gig ninety-five percent fibre coverage across the island. We also want to enhance our capabilities through 4G and Wi-Fi.”
“All of those things together in some sort of concert create that fabric that we’re working on.”
Historically Singapore’s place in the world has revolved around being a trading hub which has led it to being one of the world’s biggest cargo shipping ports.
With broadband internet access available pretty well throughout the island, it should open opportunities for entrepreneurs, businesses and government agencies to explore how ubiquitous internet creates opportunities.
As the world becomes moves from physical goods to bytes, Singapore is looking to becoming as much a technological centre as a goods hub. For Steve Leonard and the IDA the task is to make sure the city takes its place in the connected economy.
While Silicon Valley grabs most of the headlines about cool new businesses Singapore has been quietly building its own position in the global venture capital industry.
SingTel, the city state’s main telco operator, setup their own venture capital fund in 2010 with Singtel Innovate investing between S$100,000 and thirty million in various ventures.
The strategy from SingTel, which is closely aligned with Singapore’s government, is a very canny one – it allows the telco to move beyond being a “dumb pipe” just providing the phone network and fits into the nation state’s aim to be one of the centres in an increasingly Asian centred global finance system.
Yesterday SingTel launched a new Australian startup venture, the Optus Innov8 Seed fund which offers investments of up to A$250,000 in new start up businesses in return for equity or other stakes.
To identify the right investments SingTel are partnering with various start up groups and incubators in Sydney and Melbourne which is an interesting way to filter out unsuitable businesses.
Being funded by a telco, the Optus Innov8 program is naturally focused on the technologies that are going to help their business in an evolving market, the areas they are currently looking at are mobility solutions and digital convergence.
For Singtel and Optus this is a long term investment as equity stakes in new technologies will position the business well as their industry evolves and margins come under pressure in their core telco market.
To businesses looking for investments, the Innov8 program is a welcome addition to the funding landscape but Singtel also offer access to Asian markets with operations in India, Indonesia, the Philippines, Thailand, Pakistan and Bangladesh.
Edgar Hardless, the CEO of SingTel Innov8 says “if you’re looking at going into the Indian market, we can help with introductions. Same with any of our other markets”.
Those introductions are useful but probably more important is the market intelligence that a partner like SingTel can bring on board. Understanding foreign business conditions is a great advantage for a foreign venture.
Asian markets can be tough, particularly for Australians who have been bought up with a US centric view of the world, but there are plenty of success stories. There is a successful group of entrepreneurs catering to the massive Indonesian market while companies like Dealize have moved their head office to Hong Kong.
Dealize was part of the Pollenizer incubator which is one of Innov8’s partners. At the launch, Phil Morle of Pollenizer pointed out that his business has set up a Singapore office to take advantage of the favorable investment conditions there.
While Innov8’s program is relatively small, it’s a much needed addition to Australia’s start up and venture capital scene and will help some new businesses in the app and mobile space.
Hopefully a few other corporations are looking at SingTel’s lead and thinking how they can tap into these new industries that may disrupt their own.
For Singapore, the city state has always had a number of advantages for the finance industry. By expending into new financing new sectors they are securing their own future in the 21st Century.