Distinguished Guests

Ladies and Gentlemen

INTRODUCTION

1.          Good morning. I am delighted to join you today for the launch of the Action Community for Entrepreneurship’s International Centre (ACEIC), a dedicated centre to assist startups with their market access needs.

2.          This is an exciting time for the Singapore startup scene. The startup ecosystem here has grown in depth and diversity over the past decade. Each year, we see more startups, more venture activity and more success stories. The increasing vibrancy of our ecosystem has also captured interest from international investors and entrepreneurs to leverage Singapore as an Asian scale-up location and entry point into markets in the region. The establishment of the ACEIC is therefore timely, to enhance global connections for our entrepreneurs and provide a platform for startups to expand into regional markets.

SINGAPORE AS A LEADING STARTUP HUB AND LAUNCHPAD TO ASIA

3.          Singapore has developed a vibrant startup ecosystem that encourages the formation of technology startups. From just 2,800 tech startups in 2003, Singapore is now home to more than 4,300 tech startups. We are considered to be one of the leading startup hubs globally and have witnessed an eight-fold increase in venture capital activity over the past five years. In 2016 alone, a record high of $3.5 billion dollars in venture capital was invested into Singapore startups.  

4.          As an established business hub with close links to fast-growing Asian markets, Singapore is well-positioned to serve as a Launchpad for overseas startups looking to expand into new markets in the region. Take as an example Singapore-based e-marketplace service provider Shopmatic that offers a DIY online platform which enables both companies and individuals to set up e-commerce businesses, by developing a unique web store and listing their products on other marketplaces such as eBay on their behalf. Within six months of launching its e-commerce service platform in January 2016, it had established its operations in three countries in Asia – Singapore, India and Hongkong. This year, it raised a new round of funding – $5.7 million in Series A – that will be used to expand into Indonesia, Philippines, and the Middle East. Another example is data analytics and manufacturing software startup Arcstone, which is led by an American founder and based in Singapore. The startup raised its first round of funding here in late 2015. Leveraging the networks and expertise of its investors, Arcstone was able to rapidly deploy and grow within Southeast Asia. Today, it has an international team with a market presence in Singapore, China, Vietnam and Indonesia.

ONGOING GOVERNMENT EFFORTS TO ENABLE STARTUPS TO SEIZE GROWTH OPPORTUNITIES

5.          The Government is committed to supporting our startups to enable them to access opportunities, talent and innovative technologies to grow and scale.

6.          At MTI’s Committee of Supply debate in March this year, I announced the launch of Startup SG, a brand identity to connect players of the startup ecosystem in Singapore and an umbrella framework for unifying all local startup initiatives and available Government support schemes. This includes initiatives that offer assistance to startups and other players in the ecosystem on various fronts – from mentorship for first-time entrepreneurs, grant support for commercialisation of technology solutions, and co-investment to catalyse private equity, to name a few.

7.          One of the key enhancements that the Government made recently was to the EntrePass work pass scheme for promising global startup talent under the Startup SG Talent pillar. In the face of stiffer global competition for talent and increasing international interest in Singapore as a startup destination, we broadened the evaluation criteria for promising global startup founders. Consideration will be given to founders’ entrepreneurial and investment track record, business networks and achievements in their areas of expertise. They will also have up to a year to explore opportunities in Singapore before taking the plunge to make Singapore their new home for business. This allows us to attract a larger pool of skilled talent to our ecosystem at an early stage of idea exploration, and encourage global startup talent to bring their experience and skills here, complementing Singapore startups through the cross-fertilisation of ideas.

8.          Startups will also benefit from the establishment of Enterprise Singapore announced yesterday. With Enterprise Singapore, startups will receive advice on both capability development and internationalisation fronts at the same time. Correspondingly, the various schemes under SPRING Singapore and IE Singapore can be more easily pulled together to support startups. For example, in addition to the Startup SG schemes, startups can tap on the Market Readiness Assistance (MRA) Grant which supports market entry, business matching and market promotion activities, and the International Marketing Activities Programme (iMAP) which supports participation in overseas business missions and international trade fairs. Additionally, startups can look to the Singapore Government’s global network of overseas offices for advice on how to navigate the local regulatory frameworks and position their products to appeal to local consumers’ needs and preferences.

ACEIC AND OTHER PRIVATE SECTOR EFFORTS ARE AN IMPORTANT PRONG OF OUR STARTUP STRATEGY

9.          To complement our efforts, the Government partners with private sector players in the ecosystem to enable more startups to scale through tapping on global growth opportunities. In this regard, I am heartened by the initiatives undertaken by stakeholders such as ACE, to build up the startup ecosystem here and contribute to enhancing Singapore’s value proposition as a strategic startup hub.  

10.      The launch of the ACEIC by ACE, with the support of SPRING Singapore and IE Singapore, is testament to the good work that ACE has been doing. The centre, which is situated in the heart of Singapore’s startup ecosystem at JTC LaunchPad @ one-north, will serve as a landing pad and resource centre to facilitate the outbound and inbound flow of startups and multipliers. The ACEIC will help Singapore startups to expand overseas by providing resources, advice and access to new networks and markets through leveraging global in-market partners such as incubators and investors. Global startups and multipliers can also use the ACEIC’s co-working space and local connections to find investment, technology and business opportunities with partners in Singapore.

11.      I am pleased to witness the signing of the Memorandum of Understanding (MOU) between ACE and KPMG today, to support and drive co-innovation between startups and enterprises across the region. Under the MOU, both parties will explore the setting up of a Regional Co-Innovation Hub centered in Singapore, to provide a shared co-innovation space for enterprises and startups, and catalyse more opportunities for collaborations between corporates and startups, especially in deep technologies.

CONCLUSION

12.      Let me close by congratulating ACE again on the launch of the ACEIC. The centre will enhance ACE’s role as a key stakeholder in the Singapore startup scene. I am confident that it will continue to build on the good work that ACE and its partners have done to develop Singapore as a global startup hub. I strongly encourage our startups and multipliers to tap on the resources and networks that ACEIC has to offer. Together we can continue to enhance the positioning of the Singapore startup scene as a globally connected ecosystem, catalysing new opportunities for everyone.

13.      Thank you.