More Than the New Silicon Valley
Founded in 1965, Singapore has quickly become a world-class city, creating an environment in which tech companies of all sizes and stripes can thrive. Today, 40 percent of Southeast Asia’s unicorns are based in Singapore. In addition, the world’s largest, most innovative multinational corporations have set up regional headquarters or tech centres in the country.
In 2016, for example, Google opened a new headquarters there. Home to over 2,000 employees, Google’s massive office has all the bells and whistles you’d expect, with open work spaces, game rooms, and a gym. In addition, the office serves as the centre for the online search giant’s Next Billion Users initiative—a programme designing products for emerging markets—and Skills Ignition SG, which provides jobs and training for up to 3,800 local workers.
Google isn’t the only tech giant exploring new frontiers in Singapore. In 2019, Cisco established its Singapore Co-Innovation Centre, which brings together business leaders, government organisations, and startups to develop blockchain-enabled, Internet of Things solutions for a range of industries, including transportation, utilities, smart cities, and manufacturing. Also, in 2016, PayPal opened its first innovation lab outside the US in the Southeast Asian nation, collaborating with government agencies and industry experts to create an incubator for developers, students, and startup leaders in financial tech. Early on, the lab helped pioneer some of the first cashless restaurants in Singapore.
All told, Singapore’s unique alliance of business, government, and research institutions is helping international tech companies achieve new success.
“Singapore’s Smart Nation ambition and keen focus on upskilling the workforce have positioned the city-state to thrive in the digital economy,” says Ricky Kapur, Head of Asia Pacific at Zoom. “Leveraging Singapore’s excellent connectivity, business-friendly environment, and openness to leading-edge technology, we look forward to strengthening our base and expanding our teams in the region.”
How Singapore Stands Out
Today, 80 of the world’s top 100 tech companies call Singapore home. Why? First, it’s located in Southeast Asia, one of the most dynamic regions in the world, comprising countries with growth potential like Indonesia, Thailand, and Vietnam.
In fact, according to a 2020 industry report, the region’s digital economy will triple from $100 billion in 2020 to $300 billion by 2025, driven by strong demand among its 650 million inhabitants for new digital products and services, along with large regional conglomerates building out their tech stacks.
Beyond location, Singapore’s business-friendly environment sets it apart. One of its greatest and most underrated strengths, for instance, may be its compact size. At 247 square miles, it has half the geographical footprint of Los Angeles, creating a concentration of tech-educated talent that spurs even more collaboration and productivity.
Another reason Singapore is becoming the go-to destination for multinational corporations is its ability to forge overseas partnerships, particularly in the tech world, where staying on the cutting edge is critical to long-term growth. Singapore has been aggressive in pursuing Digital Economy Agreements, which boost economies by supporting digital trade rules and collaboration between partnering countries.
In addition, the Singaporean government has created unique business and educational partnerships for local workers and companies. For example, BLOCK71 Singapore—essentially a tech incubator backed in part by the National University of Singapore—now boasts an ecosystem of over 1,000 startups, venture capitalists, and entrepreneurs.
Another novel partnership supported by the government is the TechSkills Accelerator (TeSA), which addresses the universal need among tech companies for quality talent by upgrading the skills of both fresh and mid-career professionals.
In collaboration with industry partners, the programme has trained and placed around 12,000 individuals in tech roles since 2016 and has helped 120,000 acquire industry-recognized certifications in areas such as cybersecurity, data analytics, and cloud software and applications.
Microsoft and Grab, the “super-app” company based in Singapore, recently collaborated with TeSA on a programme to help Grab professionals increase their IT skills.
“We actively partner with companies to offer training and opportunities in the tech sector,” Gomez says. “Furthermore, we continue to grow our base of young talent through local universities and specialised programmes like the NUS-FinTech Programme and the Asian Institute of Digital Finance’s courses.”
The Rising Opportunities in Asia—and Beyond
Singapore is known as a strategic hub for companies expanding into Asia—but that’s only the beginning. Going forward, the city-state’s unique blend of government support, skilled workers, and innovation infrastructure is spurring companies to think of it as a new centre for global growth—creating expansion that will only make it more appealing to new businesses in the future.
“Singapore is more than a base for regional or international sales activities,” says Gomez. “Companies are using Singapore as a launchpad to help them innovate and succeed in Southeast Asia and beyond.”
*This story was produced by WIRED Brand Lab for the Singapore Economic Development Board.*
