Mr Lim Hng Kiang at the “Science and Technology and Innovative City” Forum, 30 Oct 2010

From Third World to First: Singapore’s Journey in Science and Technology Speech at the “Science and Technology and Innovative City” Forum by Singapore’s Minister for Trade & Industry, Mr. Lim Hng Kiang, at the Shanghai World Expo Summit Forum 2010 on 31st Oct 2010, Sunday, at 1.30pm

Distinguished Guests

Ladies and Gentlemen

Introduction

Good afternoon. I am delighted to join you today at the Summit Forum of the Shanghai World Expo. My presentation will elaborate on “Science, Technology and Innovation” from the perspective of Singapore.

Science and Technology in Singapore’s Economic Transformation

Let me begin with a snapshot of where Singapore is today in terms of Science and Technology. This is a picture of Singapore’s hub for research and development, One North. Just a decade ago, this site was an army camp.Today, this 200-hectare area has been transformed to house a high concentration of world-class scientific research facilities. Our Biomedical Sciences research institutes are clustered at the Biopolis, whilst our Science and Engineering research institutes are clustered at the Fusionopolis, a short distance away.These research institutes are co-located with several corporate laboratories, and in close proximity to the National University of Singapore. Scientists of diverse disciplines and nationalities, from both the public and private scientific community are collaborating in Singapore to produce cutting-edge research.

Our journey in Science and Technology has always been closely linked to our economic progress. Many years ago, we were just a fishing village and an entrepot port of the British Empire. After independence in 1965, our main economic priority was job creation. Given our small domestic market, we embarked on export-led industrialisation, driven by foreign investments. We emphasised the teaching of Mathematics and Science in our schools, and fostered the technical and engineering skills that would secure our people good jobs. In 1967, we created a Science Council to advise Government on matters related to Science and Technology. However, we only had a small budget in the tens of thousands of dollars each year. These were modest beginnings.

It was in the mid-80s that the Government first identified the need for a national technology policy. This was articulated by the Economic Committee, formed to pull Singapore out of a deep recession that had hit the economy in 1985. There was an impetus to re-invent Singapore’s economy in the face of stiff regional competition in traditional manufacturing sectors. It was also recognised that Singapore had a relatively low technology base. In 1991, we developed our first five-year National Technology Plan and established the National Science and Technology Board to catalyse the development of technology. Thereafter, over a number of successive Science and Technology Plans, Singapore’s R&D system began to grow at a rapid pace.

Today, Science and Technology is the cornerstone of Singapore’s socio-economic development. Singapore’s R&D capability has grown from a ratio of just 31 research scientists and engineers per 10’000 workers in 1991 to 88 in 2008. Our public and private sector R&D expenditure has also grown from 1% of GDP in 1991 to nearly 3% of GDP in 2008.

Science and Technology for a Better Economy, Better City and Better Life

How were we able to grow our R&D capabilities so quickly, and in a way that benefits Singaporeans?First, the Government believes in a long term commitment of resources to Science and Technology. At a time when many countries have decided to cut their R&D budgets, we have increased our R&D budget for the next five years by 20%. We are doing this because of a deep conviction that Science and Technology can upgrade our industries, catalyse growth areas, and transform the economy.

Second, we channel our R&D resources to areas that will benefit our economy.In particular, we have maintained our export-intensive manufacturing sector at 20-25% of GDP, through a focus on Science and Technology-intensive activities.

For example, we have applied R&D very strategically to enable our electronics industry to continually shift to higher value added activities. From our modest beginnings as the only television assembly plant in Southeast Asia in the 1960s, we have moved up the value chain to more sophisticated, high value semiconductors and components. Today, the electronics industry makes up 30% of our manufacturing sector today.

Ten years ago, we decided to intensify our focus on Biomedical Sciences R&D to diversify our economy. Today, we have 4,300 researchers conducting Biomedical Sciences R&D in more than 50 companies and 30 public-sector institutes, with more than S$1 billion dedicated to R&D annually. As a result, Biomedical Sciences manufacturing output quadrupled and employment doubled. Today, Biomedical Sciences contributes about 20% of our manufacturing sector.

Another strategic growth sector that we have identified is Clean Technology. In 2007, we set aside some S$700 million to grow the sector, based on a comprehensive blueprint with R&D as a key pillar. We have made good progress and attracted a number of leading companies. The sector is on track to achieve its 2015 target to contribute S$3.4 billion to Singapore's GDP and employ around 18,000 people.

Third, even as we grew our R&D capabilities, we were cognizant of the need to ensure this benefitted Singaporeans. R&D was a key component in our objective to not only drive Singapore’s economic growth but also to develop Singapore into a vibrant global city with a high quality of life. To this end, we continually seek to create a ‘Better City and Better Life’ through innovation. This requires a willingness to experiment, take risks and change mindsets. Policy innovation must accompany Science and Technology to make an impact on society.

The development of ultra-pure, high-grade reclaimed water which we call “NEWater” is an example of how Singapore applies technology and innovation to overcome our constraints and achieve greater water sustainability.

Water is a strategic resource for Singapore. We are a water-scarce country with no natural aquifers or groundwater, and limited land for water catchment. To overcome our constraints, Singapore pioneered NEWater.NEWater was enabled by breakthroughs in membrane technology, which Singapore was the first to implement on a commercial scale. All our used water is channelled via deep tunnels to water reclamation plants, where it will be treated and purified into NEWater, thereby ‘closing the water loop’.

Today, NEWater contributes to 30% of Singapore’s water supply. By 2020, its contribution will increase to 40%. In addition to addressing our water needs, the success of NEWater and other water projects has generated significant international interest and catalysed a vibrant water industry of more than 70 companies. As part of our vision to be the “Global Hydrohub”, we have opened up our advanced water infrastructure as a “Living Laboratory” for companies to test-bed cutting-edge water management technologies.

We have also extended this approach of using Singapore as a “Living Laboratory” to other urban solutions. We have several dedicated test-bedding platforms where companies can create, demonstrate and commercialise cutting-edge solutions before scaling up for the rest of the world.

In the Western part of our island just next to the Nanyang Technological University, we have a 50-hectare CleanTech Park for businesses to work with academia to develop, test-bed and demonstrate clean technology solutions on a large scale.

In the Northeast, we have the Punggol Eco-town, a waterfront housing estate. This is a platform to develop and test-bed cost-effective solutions for energy, waste and water management for a green living environment.

We have launched an electric vehicle test-bedding programme to trial different prototypes and recharging technologies.As a small island, Singapore provides the ideal environment for electric vehicle test-bedding. Our driving distances are short – the average passenger vehicle mileage is less than 60km per day, well within the electric-driving range of 90-160km per full charge.

We welcome companies to leverage on Singapore’s pro-business policies, good infrastructure, and strong intellectual property protection to develop, test-bed and bring leading-edge urban solutions to market.

Singapore’s Commitment to Furthering Science and Technology

In our next phase of development, we will place more emphasis on harnessing Science and Technology for greater impact on industry and society. A larger portion of funding will be awarded on a competitive basis, to support the best proposals. We will promote closer collaboration between industry and research institutions, and commercialisation of R&D results.

We will seek to galvanise diverse R&D expertise to develop solutions to large, complex challenge facing Singapore as a city-state. In September, we launched the “National Innovation Challenge” and endorsed “Energy resilience for sustainable growth” as the first theme to start with. The aim is to develop cost-competitive energy solutions for deployment within 20 years to help Singapore improve energy efficiency, reduce carbon emissions and increase energy options.

Conclusion

And so, our journey continues as we seek to become one of the world’s most research-intensive, innovative and entrepreneurial economies. Research and innovation will be key factors as we continue to boost the competitiveness of our industries, catalyse new growth areas, and transform our economy. This in turn will create more high value investments, good jobs and a better life for our people. I hope this presentation has provided a useful overview of Singapore’s journey in Science & Technology.

Thank you.