Speech by MOS Teo Ser Luck at the opening of IoT Asia 2014 at Max Atria, Singapore Expo

His Excellency Iñigo de la Serna, Mayor of Santander, Spain,

Mr Oliver Tian, President of Singapore Industrial Automation Association,

Mr Aloysius Arlando, CEO of Singex,

Distinguished guests,

Ladies and gentlemen,

Introduction

1.            It gives me great pleasure to join you this morning for the official opening of Internet of Things, or IoT Asia 2014, a platform to enable the sharing of best practices in IoT.

2.            What is IoT? Exponential growth in IT applications, miniaturisation of devices, falling cost of sensors, and improved access to Internet connectivity via high-speed fibre and telecom networks such as 4G have led to higher demand for devices connected to the Internet. These connected devices are able to sense, communicate and share information, providing a wealth of possibilities in decision making, status monitoring and activity planning.

3.            The Singapore market for IoT is expected to increase threefold over the next four years. Our strong international and domestic network connections support the development and delivery of innovative interactive digital services to homes, schools and businesses, and serve as the enabling platform for IoT. For international connectivity, Singapore has an extensive network of submarine cables connecting us to the key global markets. On the domestic front, our Next Generation Nationwide Broadband Network offers ultra high speed fibre broadband connectivity of up to one Gigabits per second to 95 percent of homes and businesses in Singapore.

Importance of IoT to Businesses such as SMEs

4.            What does IoT offer to businesses, including the many local SMEs in the audience today? I would like to suggest that IoT offers two types of opportunities for business transformation: first, IoT can create a new market for new products and services that previously did not exist; and second, IoT as an enabler for productivity improvements. Let me elaborate on each of them.

5.            First, IoT as a new market. IoT has significantly changed the way consumers interact with their mobile devices, and this in turn creates new demand for new products and services. Take for example handphones. A decade ago, many of us were still carrying Nokia handsets with black-and-white displays. Then came the Apple iPhone, and the smart phone industry grew exponentially. As our phones have become more sophisticated, consumers have begun demanding a wide variety of applications – games, public transport and weather apps, productivity tools. This in turn has generated greater demand for different sensors, such as GPS, accelerometers and fingerprint readers, to allow an even wider range of applications to be supported. I understand that the Samsung S5 that was launched a couple of weeks ago even has a heart rate monitor!

6.            This rapid rise of IoT presents an entirely new platform for businesses to develop innovative products and services. Our SMEs in the precision engineer, electronics and even medical technology industries can serve the growing demand of for a wide range of sensors and IoT-enabled devices being demanded by consumers. Our SMEs in the healthcare and infocomm industries can create new apps to allow consumers to access and make fullest use of IoT-enabled devices.

7.            One example is local SME HutCabb Services, which launched a remote home healthcare tool for caregivers to assist and support post-stroke patients in therapy for upper limb rehabilitation. They ingeniously incorporated an efficiency damping algorithm and queuing technique developed by A*STAR’s Institute of Infocomm Research, or I2R, for the mobile and wireless body sensor technology. HutCabb Services has since signed an MoU with its Japanese counterpart, G Sport Incorporated, which specialises in lower limb rehabilitation, to further research and integrate both upper limb and lower limb remote rehabilitation for home care.

8.            Of course, the variation in business models across companies means that not all businesses are focused on serving this new market enabled by IoT. This brings me to my second point – IoT as an enabler to raise productivity. IoT can help businesses improve their work processes through using sensors for real-time monitoring, and technology to trigger systemic responses. Automation of functions allows for more efficient deployment of scarce resources, and enables better service delivery.

9.            IoT adoption need not be costly to be able to help raise worker productivity. Take for example the F&B industry, which is facing a tight labour market. More restaurants and cafes are taking advantage of online reservation systems such as Chope to help manage its reservations better. By setting the right rules, such a system will allow restaurants to better manage its flow of customers, especially during peak hours. Another technology that F&B outlets have adopted is the food pager – after ordering food, the server will hand a pager to the customer; when the food is ready, the pager will buzz and customers can collect the food from the counter. Today, this is adopted by cafes, food courts and even hawker stalls! 

10.         While these efforts have been a promising start, the full value of IoT can be unlocked by taking one step further, by integrating various sensors to create systemic responses. This can streamline business processes and give adopters an edge over their competitors. The Government is already leveraging IoT to provide more timely service delivery. The PUB has 163 water level sensors and 49 CCTVs around Singapore for monitoring of drainage systems. Updated at an interval of 10 minutes, these water level sensors provide data on water levels in the drains and canals, enhancing the monitoring of real-time site conditions during heavy storms and response time. Real-time SMS alerts on rising water levels are then sent to members of the public who subscribe to this free service, giving them access to more-timely updates on potential flash floods.

Government Support for Increasing Adoption of IoT

11.         The Government is committed to increase the SMEs’ adoption of IoT and Infocomm Technology, or ICT. At the recent Budget 2014, DPM Tharman announced that the Government is setting aside 500 million dollars for a three-year ICT for Productivity and Growth programme, or IPG, to accelerate the adoption of ICT solutions by SMEs to boost productivity and growth. The IPG has 3 components – scaling up proven ICT solutions; encouraging enterprising SMEs to pilot emerging technology solutions such as sensors and data analytics that can transform their business; and promoting high-speed connectivity for SMEs so that they are able to take full advantage of ICT-based productivity solutions.

12.         IDA is also doing more to help boost adoption of technology capabilities in Singapore companies. To this end, IDA has launched its IDA Labs to help foster a technological culture of creating and building. Along with IDA’s Accreditation initiative — which will be housed at the Labs — young and innovative ICT SMEs can look forward to being tested and assessed to be accredited. Accreditation can help these companies to raise their visibility while giving reassurance to potential buyers.

13.         Recognising that IoT adoption may offer synergies between MNCs and SMEs, SPRING Singapore’s Partnerships for Capability Transformation (PACT) initiative was also launched in 2013 to draw out such synergies. The PACT initiative serves to identify and implement collaborative projects between the large organisations and local SMEs. 

Industry Support for Increasing Adoption of IoT

14.         Besides government support, I am happy to see that there is a strong industry push to take advantage of IoT. The co-organiser, Singapore Industrial Automation Association, or SIAA, will work with I2R to host a series of Innovation and Productivity Clinics (IPC). The clinics will discuss how SMEs can harness proven technology and beneficial innovations to drive productivity, and address issues in the deployment of IoT solutions through the sharing of best practices.

IoT Asia

15.         I have briefly outlined what IoT is, how businesses can capitalise on IoT, and how government and industry alike are encouraging the adoption of IoT. This brings to me back to the event today. The organisers have laid out a very exciting programme where numerous case studies will be discussed and successful deployments of innovation will be shared. We are very happy to have in the audience and a specially invited guest, all the way from Spain – His Excellency Iñigo de la Serna, Mayor of Santander. He will be sharing his experiences on building a smarter city. SMEs can also learn from other speakers who bring with them a wealth of experience through IoT adoption in sectors such assmart buildings, healthcare, transport, retail, logistics, smart cities, and manufacturing.

Conclusion

16.         In closing, I would like to reiterate that harnessing the technologies of IoT is a promising investment. I am confident that we will continue to maintain our competitive advantage if we continue to adapt and innovate. The government and industry are both committed to help SMEs through our various schemes and initiatives.

17.         I would like to express my thanks to SIAA and Singex for co-organising IoT Asia 2014 to offer a platform for the sharing on best practices in IoT. I am confident that everyone present today will benefit from the sharing over these two days. Thank you.