According to Statista, Singapore’s GDP by the end of 2022 is projected to be US$424.43 billion and is forecasted to reach US$543.84 billion by 2027. The consistently rising ecosystem and the increasing presence of active investors are reasons why the country is a vibrant business gateway, making it hospitable to startup companies.
Updates on the top 5 best industries for startups in Singapore
Singapore ranks 18th globally on Startup Genome’s list of top startup ecosystems in 2022. As Singapore is on its way to returning to pre-pandemic times, local and international regions and markets continue to develop economically. Here are some updates on the top 5 best industries for startups in Singapore:
Travel and tourism
As the COVID-19 positivity rate in Singapore continues to fall, the government began to ease restrictions until the country fully returned to pre-pandemic conditions. After a 2-year closure, the country reopened its borders to all vaccinated tourists and travelers on any flight without requiring PCR tests upon arrival.
The government has also taken steps toward economic recovery and growth by announcing a support package of S$500 million for the country’s tourism industry. The Singapore Minister of State for Culture, Community, and Youth, Mr. Alvin Tan, announced the news shortly after the border controls were eased in the country.
Included in the program are the following:
- Business Improvement Fund that aims to support tourism companies in the adoption of technology and sustainable solutions
- Local Enterprise and Association Development Program that drives industry initiatives focusing on technology, infrastructure, business collaboration, intelligence, and research
- Kickstart Fund that supports the creation of technological and innovative consumer-focused events and concepts
- Tourism Product Development Fund that supports the creation of new tourism products and the development of existing ones
As Singapore eases many of its COVID-19 restrictions, further opening the borders and increasing its tourist inflow, travel and tourism startups will become more beneficial and in demand moving forward. An example of a leading travel and tourism company in the country is the online hotel and venue reservation platform,
GameFi
For Singapore, supporting the growth GameFi is helping attract foreign investment. Just this March 2022, the Monetary Authority of Singapore (MAS) approved several digital payment tokens (DPT) services for a Major Payment Institution License under the Payment Services Act including some blockchain exchange and digital wallet platforms.
Singapore’s current cryptocurrency regulations ensure that all DPT providers meet anti-money laundering requirements. This is good news for all the current and potential users and players of GameFi projects. Moreover, according to DappRadar, blockchain or NFT games are least affected by the crypto winter. This resilience is interpreted as a bullish signal for investors to keep investing in blockchain games.
One of the leading GameFi startups in Singapore is the free-to-play P2E game, Ethlas. The platform has a library of arcade-inspired games similar to Candy Crush and Tetris, which may require NFTs for the players to be able to play and earn. The P2E game is listed under the crypto gaming guild offered by Play It Forward, where gamers can play and earn from the game without paying for the required NFTs.
Healthcare and biomedical sciences
COVID-19 has put healthcare and biomedical companies in the spotlight, making them more relevant post-pandemic. Biofourmis, a health tech startup based in Singapore, announced on April 26, 2022, that it reached unicorn status after raising
$300 million in a funding round.
The pandemic fast-tracked the adoption of health services in Southeast Asia, presenting unprecedented opportunities in the healthcare industry. Singapore is now seeing an increase in the number of investors willing to support startups in the healthcare sector.
Tech
During the India-Singapore Technology Summit 2022, which took place on February 23, 2022, the two countries signed an agreement to work together and deepen their connection in science, technology, and innovation. The agreement will allow Singapore and India to launch joint support funding proposals for innovative projects of Singapore and Indian companies.
Here are more reasons why tech entrepreneurs would do well in Singapore:
● Tech.Pass launched by Singapore’s Economic Development Board
Singapore has created initiatives to support tech businesses with the Tech.Pass as one of the most notable. Tech.Pass is a visa that allows business leaders and tech experts to travel to Singapore to work, teach, or establish their companies in the country.
● Tech-savvy population and easy access to mobile technology
The lion city has a smartphone penetration rate of about 90.73%, as per Statista. This indicates that Singapore is leading in the use and engagement of smartphones. People in Singapore are tech-savvy and have easy access to mobile technology, which makes it a good place for many tech businesses to thrive.
● A pool of local talent
Singapore’s schools and universities are focused on academic excellence and scientific research. These local institutions also go out of their way to help and train new talents.
For instance, the National University of Singapore (NUS) encourages its graduate students, research staff, and post-doctoral fellows to create tech startups and allocated S$1.5 million in funding to those interested. Among the selected tech teams that will receive funding from NUS are BeeX, a versatile autonomous surface and underwater vehicle for maritime applications.
E-commerce
When the pandemic put Singapore on lockdown, many businesses had to close. But businesses switched to e-commerce platforms to continue their operations. Even mom-and-pop shops and traditional brick-and-mortar retail stores offer e-payment options and actively increase their online presence.
Singapore’s thriving e-commerce market is forecasted to rise to US$10 billion by 2026. Here are some reasons why the country is one of the greatest e‑commerce gateways to Southeast Asia:
- High internet penetration: Singapore is a world leader in technology and innovation. They have approximately 5 million internet The country is a good market for e-commerce because it has an excellent digital infrastructure and high internet penetration.
- Ease of payments: Small and medium-sized businesses (SMEs) need to be paid accurately and on time. Singapore’s well-developed payment infrastructure helps make this possible for international sellers. The efficient payment systems, such as interest-free installments and e-payment options, led to a deeper adoption of e-commerce.
- Easily accessible global shipping hub: Singapore is an international shipping hub that is accessible by both air and It has the second largest container port in the world and more flights to China and SEA markets than any other country in Southeast Asia.
In April 2022, the Singapore-based startup Cocoart raised US$4.2 million during its seed funding. The company, established in 2020, aims to help businesses set up online stores quickly without expert technical knowledge.
