Singapore offers infrastructure for innovation, constructive regulation that tech firms need to thrive: DPM Heng

Tech companies looking to manifest ideas to tackle major challenges will need an environment where innovation flows across borders, backed by constructive regulation. Subsequently, scaling up to impact and profitability will require going international and exploring new markets.

And Singapore is one destination that offers the infrastructure and access required across this process, said Deputy Prime Minister Heng Swee Keat on Tuesday (June 14).

Speaking at the hybrid London Tech Week event running till Friday, he outlined the potential for technology to improve lives in a time of risks posed by the climate crisis, ageing populations and pandemics, among other issues.

Coming up with solutions will require a sharper competitive edge, and "key to this is getting onto the innovation flywheel and being part of the flow of innovation", he said.

To that end, Singapore welcomes diverse talent through schemes such as Tech.Pass, a visa for top-tier foreign tech entrepreneurs and leaders; and aims to build up a community with initiatives such as Startup SG, which provides mentorship and grants.

"In Singapore, you will also be able to tap into one of the largest VC (venture capitalist) markets in South-east Asia. Last year alone, Singapore-based start-ups raised US$11 billion (S$15 billion) - almost triple that raised in 2020 - and 11 unicorns were minted here," Mr Heng added.

He pointed to Singapore's Global Innovation Alliance network, which connects start-ups to more than 15 major hubs around the world, including London.

Singapore also hosts an annual Week of Innovation and Technology - taking place in October this year - to facilitate the exchange and flow of ideas.

Mr Heng noted that for innovation to thrive, a constructive regulatory approach is also critical.

"Emerging tech receives a mix of sceptical criticism and passionate enthusiasm. Understandably so," he said.

"Take crypto assets as an example. Cryptocurrencies are risky for retail investors and subject to speculation. But there is great potential in the underlying blockchain technology - for example, in wholesale cross-border currency settlements."

Mr Heng, who is also Coordinating Minister for Economic Policies, urged regulators to not simply curtail such technologies, and cited Singapore's approach of working collaboratively with the industry to minimise risks while encouraging innovation.

Last month, he announced a blockchain project by Singapore's central bank to study the economic potential of decentralised finance and how to establish regulatory guard rails if needed.

On Tuesday, he also called on companies seeking to scale up globally to look beyond the usual Asian markets such as China, India, Japan and South Korea.

"There is a lot more to Asia, including South-east Asia," said Mr Heng, noting the region as "brimming with possibilities" with its 660 million population, rapidly growing middle class, young and digitally savvy people, and a digital economy projected to double to over US$360 billion by 2025.

"Singapore can be a useful node for you into the region," he told the tech leaders and start-ups in attendance both in-person in the British capital and virtually.

"Despite being geographically separated by thousands of miles, we are building new bridges that can pull our regions closer together. So I hope that you will venture to explore our region, and scale your growth to many times."

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.