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LEADING SECTORS FOR U.S. EXPORTS IN SINGAPORE

The best prospects sectors for Singapore include electronic components, aircraft and parts, electronics industry production/testing equipment, laboratory and scientific instruments, pollution control equipment, electric power systems, construction equipment and building products, pumps and valves, medical devices, telecommunication equipment and computer hardware and software, university education services and franchising. CLICK on the links below for market information on some of the sectors.

Semiconductors

Singapore-based electronics manufacturers account for 11% global market share for semiconductor wafer foundry output and 25% global market share for printers. The world’s top three wafer foundry companies, top three sub-contract assembly-and-test companies, and top four fabless IC design companies all have facilities in Singapore. Electronic components for these plants are imported and integrated into products such as mobile phones, digital cameras, hand-held tablets, music players, game consoles, and televisions, which are then mainly exported. According to news articles, the electronics semiconductor sector has been a driving force of the overall manufacturing sector in the first quarter of 2017.

Singapore’s manufacturing sector has emerged as a regional economic powerhouse, contributing at least 20% to the Gross Domestic Product (GDP). A large component of this sector – electronics semiconductors – has attracted substantial foreign investments as well as value-added output and employment, contributing more than 25% of the manufacturing output. Despite the global economic uncertainty, cost pressures and regional competition, the fall in global oil prices, coupled with local structural shifts towards higher-value production and services, Singapore continues to be a world-class semiconductor hub. It is still the location of choice for multi-national corporations (MNC) to enter new markets, launch products, processes, applications, and technology.

» LEADING SUB-SECTORS

There are increasing opportunities for Electronics Manufacturing Services (EMS) companies to pursue in various areas such as medical devices and aerospace. Many of the world’s top EMS companies such as Flextronics, Solectron, and Venture are located in Singapore, which is becoming an attractive base of high value-added production activities. Another electronic component technology that is being developed is the Organic Light Emitting Diode (OLED), which is gradually replacing LCD panels.

Leading the growth will be new technology products such as 3D printers, Ultra-High Definition televisions, connected thermostats, unmanned systems (unmanned aerial vehicles, unmanned vehicles, and home robots), internet protocol cameras and wearables such as health and fitness devices and smartwatches. Smart phones, which are driving social media usage in Asia, are also on the increase. These products are expected to double, growing more than 100% year-over- year in recent years.

The wearable device revolution is a key category to watch in the coming years. It is projected that overall wearable unit sales will reach 30 million units and generate in excess of US$5 billion in annual revenue over the next few years. Health and fitness devices are expected to lead unit sales among all wearables with a projected 20 million units. The revenue is expected to surpass US$1.8 billion.

» OPPORTUNITIES

The precision engineering industry, which supports the EMS companies, is an important sector of the Singapore economy. Through the supply of components, tooling, and equipment, this industry provides integral support to the manufacturing sector. Emerging global trends such as rapid urbanization, energy conservation, and ageing populations poses new problems for the Singapore market, which in turn allows for new opportunities for the electronics industry in Singapore. There are four new growth areas that have been identified; they are namely green electronics, bio-electronics, plastic electronics and security. By 2020, the contribution to electronics output from these new growth areas is expected to triple to 30% of the electronics output.

The Government of Singapore still expects to greatly expand manufacturing output by 2020 and is aiming to reach a total manufacturing output of US$200 billion and total manufacturing value-added of US$50 billion. More than 20,000 jobs are expected to be created in the manufacturing and the service sectors in the coming years as a result. Hewlett Packard and Texas Instruments which have extensive electronics expertise, have invested nearly US$10 billion combined. Singapore is also a leading manufacturer of enterprise hard disk drives with companies such as Seagate and Hitachi. Over the past few years, the country accounted for half of the world’s enterprise hard disk drives

Web Resources

Trade Shows

Semicon Southeast Asia April 2018
http://www.semiconsea.org/

Singapore Government Offices Singapore Economic Development Board
https://www.edb.gov.sg

Industry Organizations Singapore Semiconductor Industry Association
http://www.ssia.org.sg/

Association of Electronic Industries in Singapore
http://www.aeis.org.sg/

U.S. Commercial Service, Singapore Contact:
Mr. CHAN Y K, Commercial Specialist
Email: Yiukei.Chan@trade.gov




OIL & GAS

Overview

Singapore has become one of the most important shipping centers in Asia and is one of the world’s top five oil trading and refining hubs. In addition, Singapore is one of the market leaders for floating production, storage and offloading (FPSOs) conversions and offshore jack-up rigs. Underground caverns for oil storage and a liquid natural gas (LNG) terminal are also being expanded in phases to enhance Singapore’s position as the premier regional center for the oil and gas industry. In view of the significant decrease in oil prices, the growth and imports are expected to be much less promising over the next 6-12 months due to a decrease in oil and gas exploration. However, as the regional hub for Southeast Asia and its friendly business environment, there will be opportunities for U.S. exporters in Singapore especially when the oil and gas industry improves globally.

» LEADING SUB-SECTORS

Singapore offers many opportunities for American companies including:

  • Supply of equipment such as boring or sinking machinery for upstream and downstream oil and gas, shipbuilding, marine, mechanical and electrical construction, oxidation additives, and various control systems
  • Oilfield equipment that includes instrume tation such as drilling information systems, drilling monitors, mud logging units, mud monitoring systems, torque gauges, pressure gauges, weight indicators, deadline anchors, valves/actuators, performance testing, and design control systems
  • Supply of tubular products such as casings, tubing, carbon steel line pipes, drill pipes, heavy wall pipes, drill collars, drill stem accessories, and mechanical alloy steel tubes used on derricks

» OPPORTUNITIES

Singapore is often listed as the leading oil trading hub in Asia (third in the world after New York and London) and amongst the world’s top five oil refining centers. It has a refining capacity of nearly double its rate of petroleum products consumption. It is also a world leader in the construction of exploration and production platforms and FPSOs conversions as well as for jack-up rigs. Engineering, procurement, and construction of the US$700 million LNG terminal was awarded in late 2009 to a Korean consortium led by Samsung. The first phase was completed in 2013 with the arrival of the first shipment of LNG from Qatar. Future expansion work (including a second LNG terminal which has been proposed), costing more than US$500 million, is already being planned as Singapore aims to be a future hub for natural gas trading and transshipment in Asia. Once all phases are completed by 2017, the first terminal will be able to handle nine million metric tons per year.

The construction of Very Large Floating Structures (VLFS) for storage of oil and petroleum products is also being explored since land is scarce. Feasibility studies are underway to determine the impact of sea currents and met-ocean conditions according to recent press reports. To be economical, the minimum storage capacity of a VLFS would be 300,000 cubic meters or equivalent to that of a very large crude carrier. It is estimated that it would cost US$150 million or more – the decision to move forward with the issue of a tender (engineering, procurement, and construction) has been postponed till 2018 due to the downturn in the oil & gas sector, but actual construction will commence in 2019-20 at the earliest.

» WEB RESOURCES

Trade Shows
OSEA 2018
December 4-6, 2018
http://www.osea-asia.com/

Singapore Government Offices
Singapore Economic Development Board (SEDB)
https://www.edb.gov.sg

International Enterprise Singapore (IE Singapore)
https://www.spring.gov.sg

Spring Singapore
https://www.iesingapore.gov.sg/

U.S. Commercial Service, Singapore Contact
Contact: Mr. CHAN Y K, Commercial Specialist
Email: Yiukei.Chan@trade.gov

AIRCRAFT & PARTS

» OVERVIEW

Singapore ranks second in our list of top markets for U.S. aircraft parts exports due to the country’s status as a major aircraft maintenance hub. Singapore’s favorable customs regime and its location in a rapidly growing regional aviation market have attracted many firms from the United States and Europe to set up subsidiaries in Singapore. Singaporean maintenance firms such as ST Aerospace and SIA Engineering Company are major global players in their own right. While the growth of aircraft fleets in other Asian countries (like China) and the high cost of doing business in Singapore may challenge Singapore’s dominance in the future, today it remains a solid means of entry to the Southeast Asia market.

» LEADING SUB-SECTORS

Singapore’s Maintenance, Repair and Overhaul (MRO) industry is robust. Backed by a large pool of over 100 aerospace companies, Singapore has garnered a quarter of the Asian MRO market. Singapore has become the leading aviation hub in Asia- Pacific today, contributing over a quarter of the region’s Maintenance, Repair and Overhaul (MRO) output. Leading players such as ST Aerospace and Goodrich carry out comprehensive nose-to-tail MRO services from airframe maintenance to engine overhaul to aircraft modifications and conversion. Singapore is also a center for regional parts distribution and warehousing. The boom in low-cost travel and a growing web of open-skies agreements are expected to power long-term growth for Asian airlines in the years ahead. As an aerospace hub in the Asia Pacific, Singapore is most definitely going to reap the benefits of this upturn.

In addition to supplying to all aspects of the MRO business, Singapore will see new growth opportunities in the areas of business aviation, regional training, and asset management.

» OPPORTUNITIES

Demand for commercial and business aviation is expected to grow, fueled by Singapore’s growth as a global city and the exponential travel trends in the Asia Pacific region. With Terminal 4 due for operation in early 2018 and Terminal 5 in the 2020s, Changi Airport will be expanded to a capacity of 135 million passengers per year by around 2025. A third runway will also be built to handle larger passenger aircraft and is slated to be operational by the early 2020s.

To support the long-term growth of the logistics and aerospace industries, an industrial zone will also be developed, for airfreight and air express operators as well as MRO activities. These developments will offer great opportunities for U.S. businesses to supply the aerospace sector in Singapore.

» WEB RESOURCES

Trade Shows
Singapore Air Show 2018 February 6-11, 2018
http://www.singaporeairshow.com/trade/

Singapore Government Offices
Singapore Economic Development Board
https://www.edb.gov.sg

Civil Aviation Authority of Singapore
https://www.caas.gov.sg

Defense Science and Technology Agency
https://www.dsta.gov.sg/

Changi Airport Group
http://www.changiairport.com/corporate.html

U.S. Commercial Service, Singapore Contact:
Mr. NG Haw Cheng, Commercial Specialist
Email: Hawcheng.Ng@trade.gov




MEDICAL DEVICES

» OVERVIEW

A 2016 report published by Lancet medical journal places Singapore in the top ranks for global healthcare, along with Iceland and Sweden. According to the World Health Organization (WHO), Singapore’s healthcare system ranks sixth globally and offers the fourth best healthcare infrastructure in the world. It spends 4% of GDP on healthcare and provides universal coverage for Singaporeans with multiple layers of care. In 2014, a Bloomberg report ranked Singapore first for most efficient healthcare system out of 51 countries while the Economist Intelligence Unit (EIU) ranked Singapore second in the world for best healthcare outcomes. Among its ASEAN peers, Singapore spends the most annually in healthcare on a per capita basis. It also serves as the healthcare and medical hub of the region and offers Asia’s best healthcare system. The Joint Commission International (JCI) has accredited 22 Singapore hospitals and healthcare facilities. Each year, Singapore draws over 350,000 patients with its high-quality healthcare. According to the International Healthcare Research Centre (IHRC)’s latest study in 2014, Singapore ranked fourth out of 25 countries worldwide in the medical tourism rankings.

Prominent international healthcare and research organizations such as the American Association for Cancer Research, Duke University, Healthcare Information and Management Systems Society, and Joint Commission International have established a presence in Singapore. The research institutes work with scientists here to accelerate drug discovery and develop therapies for unmet healthcare needs.

The government is very committed to Singapore’s healthcare needs and the longterm plan is to raise GDP spending on healthcare to 8%, up from 4% currently. The Health Ministry’s 2017 budget is $7.4 billion and the government’s projected healthcare spending is expected to rise to $9.6 billion per year by 2020. Singapore has strong fundamentals in healthcare excellence, providing strong infrastructure and universal health coverage. This emphasis on quality care has enabled the country to achieve high life expectancies, fourth in the world, and the lowest infant mortality in the world. Its challenge is that it has one of the fastest aging populations in Asia, which will translate to a greater demand for specialized elderly care amid rising costs.

In 2016, imports of medical equipment and supplies to Singapore increased by 10% over the previous two years. This augurs well for the healthcare sector with the increased spending associated with the establishment of new hospitals and healthcare facilities. U.S. imports of medical equipment and supplies accounted for 30% of market share in 2016 and registered an increase of 8% over the previous year.

Based on available trade figures for 2016 and 2017 to date, U.S. exports of medical equipment to Singapore are expected to increase in 2017. This reflects the continued focus the Singapore government has to grow and enhance the healthcare delivery sector and the positive perceptions associated with American brands in the medical devices and healthcare sector. As regional economies start to enjoy higher economic growth and improvements in healthcare standards and delivery, transshipments through Singapore are expected to rise. A continued increase in exports after 2017 is anticipated. At present, more than 60% of products imported into Singapore are subsequently re-exported.

Medical devices are regulated under the Health Products Act and Health Products (Medical Devices) regulations. Singapore’s Health Sciences Authority (HSA) oversees the system of statutory control aimed to safeguard the quality, safety and efficacy of medical devices available in Singapore. Almost all medical devices are regulated. Class A medical devices supplied in a non-sterile state are exempted, however, Class A sterile, Class B, C, and D medical devices are subject to product registration requirements. Classification rules are adopted from the guidance developed by the Global Harmonization Task Force (GHTF).

ASEAN has been developing a uniform system for registering and assessing medical devices across the ten member countries. Various ASEAN economies have started adoption of the ASEAN Medical Device Directive (AMDD). This requires ASEAN countries to adopt uniform classification criteria for medical devices. This bodes well for U.S. medical device manufacturers as they will be able to easily access a common medical device market with a market size of more than 600 million people. Adherence to the basic principles of the AMDD in ASEAN will likely only take place in late 2017 or in the next few years.

» LEADING SUB-SECTORS

The Singapore government is very committed to Singapore’s healthcare needs and has committed a budget of US$7.4 billion. There will be three shifts in the Health Ministry and these are: Beyond Healthcare to Health; Beyond Hospital to Community; Beyond Quality to Value.

Statistics have shown a rise in the incidence of diabetes in Singapore where approximately 8% of the population is diabetic. The Ministry of Health is looking to arrest this and will dedicate resources to combat it. There are currently more than 400,000 diabetics, costing Singapore over US$740 million yearly. This is expected to rise to US$1.8 billion if the trend is not arrested. A holistic approach encompassing regular health screenings, lifestyle changes, and exercise will be adopted. Opportunities therefore exist for U.S. suppliers of health and wellness products.

The mandate of the Health Ministry is to deliver affordable healthcare, ensuring good medical outcomes, reducing illness and promoting good health and ensuring that the country is resilient against communicable disease threats and civil emergencies. Five years ago, the government announced a US$5.6 billion budget that addressed infrastructure concerns in the short and long term as well as healthcare provision and subsidies for the poor. The three key areas of focus are healthcare infrastructure, healthcare delivery, and managing the associated costs and issues related to an aging population. This budget also includes larger subsidies for surgical implants, the treatment and management of chronic diseases, as well as funding programs to promote healthy lifestyle and active-aging programs. As a result, U.S. exporters of medical devices, preventive and health screening products, and disease management solutions would be able to benefit.

The Singapore government also remains committed to ensuring that the national healthcare system keeps pace with global medical advancements. To keep up with advances in biomedical science and encourage the development of new clinical treatments for Singaporeans, the Ministry of Health, in partnership with A*STAR (Agency for Science, Technology and Research), and several other governmental bodies, will invest US$53 million in clinical and translational research. Another US$10.6 million has been set aside for the development of new clinical services. The aim is to augment Singapore’s medical capabilities in the public healthcare system and position Singapore as the premier regional medical services hub. U.S. exporters who are able to provide cutting-edge technology, laboratory and testing equipment, and services for the healthcare and research communities, will find Singapore a lucrative market.

The elderly, categorized as those over 65 years, currently represents 10.7% of the total population, higher than all the other ASEAN countries. Within the next twenty years, Singapore will experience what is known as ‘hyper-aging.’ Over a quarter of the population will be 65 years and older by 2030. As such, more facilities for the elderly, such as nursing homes and rehabilitation centers, need to be built. The demand for services such as geriatric medicine and rehabilitation medicine are expected to rise as is demand for homecare services. U.S. firms specializing in elder-care products and services will find a robust and growing market in Singapore.

» OPPORTUNITIES

Broadly speaking, the opportunities are in personal health management, health screening, disease management, preventive care products, access to homecare resources and support, health IT solutions, data sharing, and advanced technologies that would enable seamless and integrated healthcare. Innovative solutions that offer relative value are sought.

According to Frost and Sullivan, Asia Pacific’s healthcare market is estimated to contribute close to 33% of the global healthcare market and estimated to be valued at $521 billion, with trends in the medical device industry in Asia mainly centered on imaging, cardiovascular, and healthcare IT. A key driver for the Southeast Asian region is the impending liberalization of the services sector this year under the ASEAN agreement. A 2012 study by Deloitte Centre for Health Solutions indicates that Southeast Asia has the highest private health expenditure of any region in the world, at 63.1% of total health expenditures. This has led to increased private-public sector collaboration in Singapore, Malaysia, and Thailand.

Singapore is renowned for its role as a healthcare hub for the region, treating patients from neighboring Malaysia, Brunei, Indonesia, Thailand, Philippines, and more recently, from the Americas, Europe, and the Asia Pacific.

Government hospitals account for 80% of all hospital beds in Singapore while the private sector accounts for 20%. Under Healthcare 2020, over 4,000 new public hospital and community hospital beds will be added by 2020. Currently, there were an estimated 12,000 hospital beds, equal to a rate of 2.2 beds per thousand people. Three quarters or 9,700 will come from the public sector with the private sector accounting for the rest.

Demand for medical equipment comes from public and private hospitals and clinics. The Health Ministry is the largest consumer, accounting for nearly 70% of local demand. All public and the majority of private sector hospitals are Joint Commission International (JCI) accredited. Parkway Healthcare, the largest private sector healthcare provider in Singapore, is also a significant buyer of medical equipment. More than 80% of local demand is met through imports and there is a premium placed on American-made products will find Singapore a good market place.

Singapore will invest in primary care infrastructure such as polyclinics and community health centers. Digital technologies that support the healthcare sector are another area of investment. Singapore’s Ng Teng Fong Hospital, a public tertiary hospital, obtained the coveted HIMSS EMRAM Stage 7 in late 2016, the highest EMRAM level, barely a year after its opening. The National Electronic Health Record (NEHR) project, launched eight years ago, valued at US$144 million is close to becoming a reality with each citizen having his or her own electronic medical record.

Between now and 2025, parts of the Singapore General Hospital, to be renamed the Outram Campus and Community Hospital, will expand with major redevelopment of Singapore’s oldest and largest hospital set to take place from 2025 to 2035. Over the medium term, five new public hospitals and up to twelve more polyclinics will be built by 2030 to ensure that Singapore has adequate healthcare coverage. There are also plans to build new and replacement nursing homes to bring the total to 25 by 2020. Given that the world is facing infectious disease threats due to more global travel and increased connectivity, a new 300-bed hospital for infectious disease is expected to be built by 2018. In addition, a new 12-story, US$135 million National Heart Center building, three times larger than the size of the existing one, is currently being built at the Singapore General Hospital and is scheduled for completion in 2020. Other infrastructure projects include the Woodlands General Hospital and the existing Tan Tock Seng Hospital. These are scheduled to progressively come on stream between 2020 and 2036.

» WEB RESOURCES

Trade Shows
APACMed Asia Pacific Medtech Forum 2017 November 7-8, 2017 https://medtechforum.asia/web/teaser

Asia Health 2018
April 3-5, 2018
http://www.asiahealthexhibition.com/

MEDLAB Asia Pacific 2018
April 3-5, 2018
http://www.medlabasia.com/

International Dental Exhibition and Meeting 2018 (IDEM)
April 13-15, 2018
http://www.idem-singapore.com/

Medical Fair Asia 2018
April 3-5, 2018
http://www.asiahealthexhibition.com/

MEDLAB Asia Pacific 2018
April 3-5, 2018
http://www.medlabasia.com/

International Dental Exhibition and Meeting 2018 (IDEM)
April 13-15, 2018
http://www.idem-singapore.com/

Medical Fair Asia 2018
August 29-31, 2018
http://www.medicalfair-asia.com/

Singapore Government Offices Singapore Ministry of Health (MOH) https://www.moh.gov.sg

MOH Holdings (MOHH)
http://www.mohh.com.sg/

Integrated Health Information System (IHiS)
https://www.ihis.com.sg

August 29-31, 2018
http://www.medicalfair-asia.com/

Singapore Government Offices Singapore Ministry of Health (MOH)
https://www.moh.gov.sg

MOH Holdings (MOHH)
http://www.mohh.com.sg/

Integrated Health Information System (IHiS)
https://www.ihis.com.sg

Health Sciences Authority (HSA)
http://www.hsa.gov.sg

Health Promotion Board (HPB)
https://www.hpb.gov.sg/

Agency for Integrated Care (AIC)
https://www.aic.sg/

Singapore Economic Development Board (SEDB)
https://www.edb.gov.sg

Phar-East 2018
March 1-2, 2018
http://www.terrapinn.com/exhibition/phar-east/index.stm

Asia Health 2018
Health Sciences Authority (HSA)
http://www.hsa.gov.sg

Health Promotion Board (HPB)
https://www.hpb.gov.sg/

Agency for Integrated Care (AIC)
https://www.aic.sg/

Singapore Economic Development Board (SEDB)
https://www.edb.gov.sg

U.S. Commercial Service, Singapore Contact:
Ms. Luanne Theseira, Commercial Specialist
Email: Luanne.Theseira@trade.gov

TELECOMMUNICATION

» OVERVIEW

Singapore remains one of the world’s most technologically advanced telecommunications markets, according to BMI. In January 2017, the Singapore wireless population broadband penetration rate was 198.2% while the household residential wired broadband penetration rate was 97.6%. Mobile penetration reached 149.8% and the mobile operators have closed their 2G networks effective April 1, 2017. Telecom statistics can be found at: https://www.imda.gov.sg/industry-development/facts-and-figures/telecommunications/statistics-on-telecom-services

Telecommunications and Internet facilities in Singapore are state-of-the-art, providing high-quality communications with the rest of the world. 3G services were rolled out in 2005, 4G in 2011, and mobile operators introduced 4G+ and LTE-A in 2014. Singapore currently has three main mobile telephony operators, 17 mobile virtual network operators (MVNOs), and 82 Internet Services Providers in Singapore. However, Australian TPG Telecom won the fourth national mobile operator license last year and is expected to roll out its services nationwide in 2018. The U.S. and Singapore have a Mutual Recognition Arrangement (MRA) on telecom equipment certification, and a list of the recognized U.S. testing and certification agencies can be found at: https://www.imda.gov.sg/regulations-licensing-and-consultations/international-roles/testing-laboratories-and-certification-bodies-recognised-by-imda

Besides a nationwide broadband network infrastructure, Singapore is well connected by multiple satellite and submarine cable systems with more than 498 terabits per second (Tbps) of potential capacity supporting international and regional telecoms connectivity. It has more than 10.5 terabits per second (Tbps) of international Internet bandwidth connectivity to economies such as the U.S., China, Japan, India, as well as some countries in Europe and ASEAN.

» LEADING SUB-SECTORS

Singapore is a major entrepôt and serves as a major distribution center for companies interested in selling to the region. In 2016, over 96% of telecommunications products imported into Singapore were re-exported for third country consumption. Best prospects for the Singapore market are next generation solutions for broadband, 4G, IPTV, VoIP, Internet of Things (IoT), and Smart Nation Initiatives.

>>OPPORTUNITIES

In December 2016, TPG Telecom Pte Ltd made the winning bid in the New Entrant Spectrum Auction, and was allocated 60 MHz of spectrum. This comprised 20 MHz in the 900 MHz spectrum band and 40 MHz in the 2.3 GHz spectrum for the provision of 4G and International Mobile Telecommunications Advanced services. The new operator is expected to roll out its services in 2018 and this presents U.S. companies a good opportunity to supply their equipment and solutions. In addition, current operators are also seeking new technology as they seek to offer advanced services to their customers, including IoT products such as smart home and telecare applications to the mass market. Singapore is implementing some of the ideas articulated in its Infocomm and Media 2025 Master Plan, e.g., it is developing a Smart Nation Platform and Heterogeneous Network that will form the infrastructural foundation for Smart Nation, delivering connectivity to Everyone, Everything, Everywhere, All the Time.” More information on the Master Plan can be found at https://www.imda.gov.sg/

The Singapore government seeks to partner ICT companies to develop innovative services and solutions to achieve their vision of a smart and connected nation. U.S. companies interested in participating in Singapore’s ICT projects should review the following websites: https://www.tech.gov.sg/Programmes-Partnerships

» WEB RESOURCES

Trade Shows CommunicAsia/BroadcastAsia
June 26-28, 2018
http://www.communicasia.com
/ http://www.broadcast-asia.com/

Key Websites
https://www.imda.gov.sg/

https://www.tech.gov.sg/

http://www.sitf.org.sg/

http://www.atis.org.sg/

https://www.export.gov/Market-Intelligence

U.S. Commercial Service, Singapore Contact:
Ms. CHIA Swee Hoon, Commercial Specialist
Email: SweeHoon.Chia@trade.gov

COMPUTERS

» OVERVIEW

Singapore is one the most wired country in the world connected by a network of fiber optics. The 2016 World Economic Forum Global Information Technology Report ranked Singapore as the most network- ready country in the world to leverage ICT for increased competitiveness and well-being. According to latest available government statistics, computer usage amongst all businesses in Singapore is 90% and broadband adoption rate increased to 95% for those companies with 10 or more employees. More than 97% of Singapore homes have broadband access and households showed trends of switching to using Internet-enabled mobile phones and other Internet-enabled devices such as Smart TVs to access the Internet. More information can be found at https://www.imda.gov.sg/industry-development/facts-andfigures/

Singapore has developed a 10-year Infocomm and Media 2025 Master Plan that charts the directions the country will take to stay at the forefront of innovation and achieve its vision of becoming a Smart Nation. To unify and speed up the roll out of its smart nation initiatives, the Singapore government has made a series of organizational restructurings, and formed the Smart Nation and Digital Government Group (SNDGG) under the Prime Minister’s Office on May 1, 2017. It is an executive agency comprising staff from the Digital Government Directorate of the Ministry of Finance (MOF), the Government Technology Policy Department in the Ministry of Communications and Information (MCI), and the Smart Nation Program Office (SNPO) and the Government Technology Agency (GovTech).

» LEADING SUB-SECTORS

Best prospects include government projects, cyber security, business analytics, data centers, cloud computing, internet of things, artificial intelligence, and other smart nation solutions in mobility, health, education, and fintech.

According to the 2016 Top Markets Report Health IT Country Case Study by USDOC ITA, Singapore was ranked the 5th market for Health IT exports. Singapore continues to be a solid Health IT market, particularly among Asian countries. The city-state recently announced plans to expand its National Electronic Health Record system, first developed in 2010 and in existence since 2011. It is expected to procure an estimated US$200 million in ICT projects in the healthcare sector in FY 2017. Over the next five years, the Ministry of Health (MOH) expects to increase its procurement of IT services and technologies by at least 25%.

The Integrated Health Information Systems (IHiS), the technology arm for MOH plans to invest in co-creating disease prevention and management programs, home diagnostic toolsets, and assistive robots.

Singapore is expected to have a sharp increase in its over-60 population over the next 15years. Besides high expected growth in the over-60 population, Singapore’s compact geography, highly urbanized society, high per-capita income and widespread use of mobile phones and Internet are other factors that support strong Health IT usage. More information can be found at: http://trade.govtopmarkets/health-it.asp

» OPPORTUNITIES

According to BMI, Singapore is an advanced and high-value enterprise market where software and services spending are expected to drive continued growth in total IT spending over the medium term. Singapore also benefits from its regional hub status. BMI forecasts 2017 sales of computer hardware in Singapore to amount to US$1.45 billion and software to reach US$2.14 billion.

The Singapore government announced that it will be spending more than US$1.7 billion on ICT tenders in addition to the US$200 million on ICT projects in the healthcare sector. U.S. companies interested in doing business with the Singapore government should register with GeBIZ http://www.gebiz.gov.sg the Singapore government’s one-stop e-procurement portal where public sector invitations for quotations and tenders are posted. Both local and foreign suppliers are able to search for government procurement opportunities, download tender documents, and submit their bids online. U.S. companies interested in partnering with the government should also review the website: https://www.tech.gov.sg/Programmes-Partnerships

» WEB RESOURCES

Trade Shows
RSA Conference 2017
July 26-28, 2017
http://www.rsaconference.com/events/ap17

Cloud Expo Asia October 11-12, 2017
October 10-11, 2018
http://www.cloudexpoasia.com/

Cloud Security Expo October 11-12, 2017
October 10-11, 2018
http://www.cloudsecurityexpo.com/

Smart IoT
October 10-11, 2018
http://www.smartiotsingapore.com/

Data Centre World
October 10-11, 2018
http://www.datacentreworldasia.com/

Seamless 2018
May 3-4, 2018
http://www.terrapinn.com/exhibition/seam- less/

IOT Show Asia 2018
April 1-2, 2018
http://www.internetofthingsasia.com/

Enterprise IT
June 26-28, 2018
http://www.enterpriseit-asia.com/

Key Websites
https://www.imda.gov.sg

https://www.tech.gov.sg

http://www.sitf.org.sg

https://www.export.gov/Market-Intelligence

U.S. Commercial Service, Singapore Contact:
Ms. CHIA Swee Hoon, Commercial Specialist
Email: SweeHoon.Chia@trade.gov

ENVIRONMENTAL TECHNOLOGIES (POL)

» OVERVIEW

Singapore enjoys one of the cleanest urban environments in Asia, including clean air for much of the year. During the summer months, however, slash-and-burn agriculture in Indonesia typically blankets Singapore in thick smog known as “transboundary haze”. The resultant hazardous levels of air pollution have caused notable economic losses in the form of medical expenses, employment absences, and business closures each year. The matter is addressed by the ASEAN Agreement on Transboundary Haze Pollution.

One key focus of air pollution mitigation efforts in the country has been on emissions from the transportation sector. Singapore has adopted Euro 5 standards for new diesel vehicles and will move to Euro 6 for all new gasoline vehicles on January 1, 2018.

In its Nationally Determined Contribution under the December 2015 Paris Climate Agreement, Singapore committed to reduce its emissions intensity by 36% from 2005 levels by 2030 and to peak its emissions around 2030. Singapore has had success in reducing its carbon emissions by switching most of its energy production to natural gas. As of 2014, over 95% of the country’s power was generated by natural gas fired plants.

» LEADING SUB-SECTORS

Singapore has invested heavily in research and technology over the last four decades and has become a center of excellence in water resource management. The result is a thriving industry with more than 180 international and local companies active in the market. The water technologies market has been, and will continue to be, large and highly sophisticated as the country aims for water independence. Areas of particular interest include filtering and purifying machinery and apparatus, technologies involving wastewater recycling and treatment, and desalination technologies.

» OPPORTUNITIES

In addition to the environment control equipment, demand for advanced water technology and infrastructure in Singapore also presents commercial opportunities for U.S water technology providers. According to the Public Utilities Board, the agency has plans to increase the country’s desalination and NEWater capacities enough to meet up to 50% of freshwater demand by 2060.

» WEB RESOURCES

Trade Shows
BEX Asia
September 12-14, 2017
http://www.bex-asia.com/

Singapore International Energy Week
October 23-27, 2017
http://www.siew.sg/

Singapore International Water Week
July 8-12, 2018
http://www.siww.com.sg/

Singapore Government Offices
Ministry of the Environment and Water Resources
https://www.mewr.gov.sg/

National Environment Agency
https://www.nea.gov.sg/

Public Utilities Board
https://www.pub.gov.sg/

Energy Market Authority
https://www.ema.gov.sg

LABORATORY & SCIENTIFIC EQUIPMENT

» OVERVIEW

Singapore will sustain R and D spending at about 1% of GDP. The Research Innovation Enterprise (RIE) 2020 Plan aims to support and translate research into solutions that address national challenges, build up innovation and technology adoption in companies, and drive economic growth. Under the RIE plan over the next four years to 2020, the Singapore government will invest US$13 billion in RandD and innovation activities. This represents an increase of 18% over the previous five-year plan, and signals a strong commitment to R and D and the RIE ecosystem. The four areas of focus are Advanced Manufacturing and Engineering, Health and Biomedical Sciences, Services and the Digital Economy, and Urban Solutions and Sustainability.

These seek to deepen Singapore’s technological capabilities and competitiveness in manufacturing and engineering, advance human health and wellness, leverage the country’s digital capabilities and more. Under RIE2020, there will be an additional US$1.8 billion for “white space” which refers to emerging research, innovation, and enterprise activities. Developing deep R and D capabilities continues to remain a key priority.

In 2000, when Singapore began its push into the biomedical sciences, the medical technology industry was worth US$1.2 billion. Since then, Singapore’s biomedical sciences sector has grown into a sizeable stable of almost 300 companies and businesses. This includes over 30 global medical technology companies that have set up commercial- scale manufacturing plants in Singapore.

The United States continues to dominate in the area of laboratory and scientific equipment and accounts for approximately 24% of total imports. Imports from the U.S. increased by 15% in 2016 and correspondingly, total imports in 2016 also increased by 18%. However, based on available data, U.S. imports are projected to decrease in 2017. Purchasing cycles for such equipment is between 5-10 years, and as the industry replaces equipment, demand is expected to remain constant.

As Singapore is a transshipment hub, more than 60% of imports are re-exported.

The U.S. is considered a leader in the field of scientific and laboratory instrumentation and there is a strong preference for American manufactured products. With Singapore’s keen focus across a broad spectrum of industries, such as advanced manufacturing, precision engineering, chemicals, and biomedical sciences, exports of American laboratory and scientific equipment is expected to remain strong.

» LEADING SUB-SECTORS

Demand for laboratory and scientific equipment comes from industry clusters such as the biomedical sciences, clean technologies (which encompasses environmental and water technologies), electronics, microelectronics, aerospace, petrochemicals, specialty chemicals, marine and offshore engineering, interactive and digital media, data storage, and institutional R and D laboratories. Several of these key and leading sub-sectors have also attracted substantial new investment.

In the area of biomedical sciences, more than 7,000 researchers carry out research and development for more than 50 companies, universities and private and public sector research institutes. More than US$1.23 billion is spent on biomedical R and D annually. The global medical technology industry is projected to exceed US$300 billion by the end of the year with a significant contribution to this expansion coming from the Asia- Pacific market.

The Singapore Agency for Science, Technology and Research (A*STAR) will also establish two model factories by the end of 2017 at the A*STAR’s Advanced Remanufacturing and Technology Center and the Singapore Institute of Manufacturing Technology. These factories aim to encourage collaboration and development of innovative solutions for companies and stakeholders. Manufacturing remains a key pillar of Singapore’s economy making up 20% of GDP. More than 60 A*STAR research scientists and engineers have been seconded to local companies to help support and grow this sector.

» OPPORTUNITIES

Looking ahead, the Singapore government has budgeted US$13 billion in continued support of research, innovation, and enterprise activities till 2020. This year, 2017, marks the first year of this new RIE 2020 plan for science and technology research.

A significant amount is dedicated to developing the advanced manufacturing sector and there is continued support of the existing biomedical R and D infrastructure, integrating multi-disciplinary research and translating basic science into tangible outcomes.

Considerable resources are being poured into six key research areas, specifically molecular, cellular, and developmental biology, cancer genetics, stem cells and regenerative medicines, immunology and infectious disease, metabolic medicine, and biomedical engineering. Many global companies and Asian enterprises have significant operations in Singapore, including eight of the world’s top ten pharmaceutical companies, all of the top ten medical technology companies, as well as several global skincare and personal care companies.

U.S. firms include GE Healthcare, Johnson and Johnson, Amgen, Merck, Baxter, BD, and Procter and Gamble.

Recognizing that Asia is home to half of the world’s population, Singapore is betting on clean technologies as a strategic economic growth area. To achieve this, Singapore has allocated approximately US$580 million to develop five key areas for clean technologies. These are research and development, manpower development, grooming Singapore-based enterprises, branding Singapore’s clean technology industry internationally, and developing a vibrant cleantech eco-system. There are more than 70 water companies present in Singapore and these include U.S. firms such as GE Water and Black and Veach.

» WEB RESOURCES

Trade Shows
Phar-East 2018
March 1-2, 2018
http://www.terrapinn.com/exhibition/phar- east/index.stm

MEDLAB Asia Pacific 2018
April 3-5, 2018
http://www.medlabasia.com/

OSEA/ OGMtech 2018
December 4-7, 2018
http://www.osea-asia.com/

Singapore Government Offices
A*STAR (Agency for Science, Technology and Research)
https://www.a-star.edu.sg/

Singapore Economic Development Board (SEDB)
https://www.edb.gov.sg http://www.smfederation.org.sg/

U.S. Commercial Service, Singapore Contact:
Ms. Luanne Theseira, Commercial Specialist
Email: Luanne.Theseira@trade.gov

AGRICULTURE

» OVERVIEW

As a small country, Singapore has limited agricultural land and domestic food production. Agriculture contributes less than 1% of the country’s GDP per capita and 1.3% of labor force by occupation in 2016. Singapore produces mainly leafy vegetables and beansprouts, all for local consumption. With a total landmass of 1,465 hectares (3,620 acres), its six Agro-technology parks, comprising of 200+ farms, produce a diverse range of products including livestock, eggs, vegetables, fruits, orchids, and aquarium fish and food. Singapore is a major exporter of some 500 ornamental fish species, and cut orchids that are exported to more than 30 countries including the United States, Japan, Greece, and Canada.

Due to its limited agricultural land and resources, Singapore is almost entirely dependent upon imports for all of its food requirements. There are no import tariffs or excise taxes for all food and beverages, except for alcoholic beverages and tobacco products. A Goods and Services Tax (GST) of 7% is levied for all goods and services at the point of distribution.

» LEADING SUB-SECTORS

DAIRY PRODUCTS

In general, prospects are bright for U.S. dairy product sales to Singapore due to steady economic conditions, middle class expansion, dietary pattern shifts, growing food manufacturing industry, and healthier lifestyles, which acknowledge dairy products’ role in health and nutrition. Albeit a decrease in sales across-the-board, the United States was still mostly the fourth largest supplier of dairy products in 2016 while Australia and New Zealand are strong competitors.

Some dairy products tend to perform better than others. According to Euromonitor, cheese registered retail value growth of 3% in 2016, slightly lower than the review period average due to increasing category maturity. Essentially, there are two distinct consumer bases for cheese/cheese products: those who trade up to more expensive unprocessed cheese for healthy and quality reasons; and those who remain price sensitive. Because customers’ interests in cheese continue to grow, the retail value growth sales of cheese is expected to remain robust.

Fortified/functional milk products characterized new product launches in 2016. These launches reflected increasing consumer demand for healthier and value- added products. They also indicated a strong trend toward making drinking milk products more “premium” as a growth strategy in a mature product category. For example, Fonterra brand added a black sesame flavor to its Anlene brand; Nestle introduced Milo Nutri G- which combines Milo with whole grains; and regional brand F and N launched a reformulated version of its Magnolia Plus Oats. Milk products are considered dietary staples and thus the products’ retail value growth are expected to remain stable.

Yoghurt products are considered both nutritious and healthy, but they are increasingly in the mature product category. However, with the on-going trend of eating healthy, as long as companies keep focusing on new flavor development and better fortification, this would likely help to retain and reinvigorate consumer interest in yoghurt products.

Breakfast cereal continued to do well in 2016. In April last year, Singapore’s Health Promotion Board launched a campaign to support increased consumption of whole grains, including breakfast cereal, in an attempt to reduce the risk of diabetes among Singaporeans. The campaign helped to raise the overall profile of whole grains across food categories, and has had a positive impact on sales of breakfast cereal. Cereal is also a common breakfast item for most international hotel chains and restaurants; and international brands dominate the sector - including popular U.S. brands.

FRESH FRUIT

The U.S. continued to dominate the fresh fruit market in 2016 due to price competitiveness, quality, and promotional support provided by U.S. suppliers, brand recognition, and supply reliability. Despite a decrease of 2.17% compared to 2015, the U.S. still registered a healthy US$83 million in sales of fresh fruit last year. In addition, Singapore’s highly developed cold chain distribution system helps U.S. fruit prospects. The top U.S. fresh fruit from 2012 to last year were grapes, oranges, strawberries, and apples. The U.S. faces strong competition from China, Malaysia, Australia, and South Africa.

Local consumers, in general, highly regard U.S. fresh fruit quality. Higher income also creates more demand for certain premium air-flown fruit such as strawberries, plums, and avocados. Local consumers are receptive to U.S. fresh fruit promotional programs and attractive packaging, and educational materials. U.S. exporters have excellent opportunities in the main retail channels of supermarkets, hypermarkets, and convenience stores. The fresh fruit market is competitive, with extremely price-sensitive retailers and consumers.

FRESH VEGETABLES

Despite strong competition from neighboring countries with their lower labor and transportation costs, prospects for U.S. fresh vegetables are still attractive due to solid demand for U.S. products and ongoing health trend.

U.S. products tend to gravitate toward the premium market, where quality is more of a factor. Top U.S. selling fresh vegetables in 2016 were potatoes, asparagus, celery, and lettuce. While there is price sensitivity on more expensive products such asparagus, purchases for asparagus actually increased by 4.05% for the 2016/2015 period.

Singapore’s vibrant and dynamic food service sector has led to rapid growth in imported temperate climate vegetables. Key supermarket chains also offer imported vegetables from the United States.

Rising tourism in recent years and the large number of expatriates living in Singapore have led to the increased demand for imported vegetables. Imported vegetables should continue to grow by 6% during the next five years. According to Euromonitor, the Asia Pacific region accounted for nearly 81% of the global vegetable consumption (2015 figure).

SNACKS

The snack sector in Singapore is dominated by products from Malaysia and international brands manufactured in ASEAN and China. There is high competition for retail shelf space especially among chocolate producers. However, there is still room for growth for U.S. products; in particular they have strong brand recognition. In 2016, the U.S. was the third largest supplier at $37 million; and the top U.S. selling snacks were bread, pastry, cake (one category), potatoes, and nuts.

The demand for sweet and savory snacks is expected to remain robust in years to come, due to Singaporeans’ rising disposable incomes, increasingly busy lifestyles, and growing tendency of Singaporeans to snack. New launches and promotional marketing activities also help to sustain demand, including new brands, product types, and flavor variants. There is also a growing demand for higher quality and more expensive snack products. The increasing popularity of social media generates demand for snacks.

According to Euromonitor, packaged food manufacturers (including snack producers) were tapping into the ongoing health and wellness trend as a key focus area in 2016.

With the increasing pervasiveness of the Healthier Choice Symbol on products, manufacturers were taking advantage of enhanced fortification and more specific health claims as a key marketing strategy in gaining value share for their products and this trend dominated new product developments in the industry last year.

WINE

According to Euromonitor, wine is predicted to record a 5% total volume Compound Annual Growth Rate (CAGR) over the forecast period, generating 15 million liters (3.9 million gallons) in sales in 2020. Wine sales have been growing steadily in the last few years due to increased demand and broadness of the market. Consumers in Singapore enjoy various types of wines. The increasing number of “specialty” wine shops also reflects growing demand.

France dominates the wine market by more than 69%, followed by Australia, Italy, the United Kingdom, and the United States. While it is growing, the U.S. market share in the overall market is still quite low (it was number five in the global import ranking in 2016) due to Singaporeans’ lack of familiarity and awareness of U.S. wines. U.S. wines have greatest potential in the mid-tier range as French wines dominate the premium market with their broad range of products and high profile promotions; and Australian wines dominate the retail market with their broad range of products from mass market to premium, and have strong distribution channels. According to Euromonitor, Pernod Ricard led wine with 9% of total volume sales given its brand strength; and consumers can easily find Jacob’s Creek in foodservice and retail channels in Singapore.

Singaporeans are generally well educated when it comes to drinking wine and tend to follow global trends. Their emphasis on matching wine and food has prompted them to try wines from different countries. Also, the younger generation tends to experience wine drinking from an early age at social gatherings. Thus, retail sales of wine are expected to record positive and stable growth.

U.S. wines have good quality recognition, and the growing premium dining sector, and growing number of wine shops ensure potential for U.S. wine sales. Singapore also serves as an important transshipment point for sales to neighboring countries.

PORK

According to USDA’s Livestock and Poultry: World Markets and Trade, U.S. pork production is forecast up nearly 5% in 2017 as producers increase supplies in anticipation of strong domestic demand and higher exports. Exports are forecast up to 8% at 2.6 million tons. Lower prices are expected to boost shipments to foreign markets too. The projected increase in U.S. production in 2017 is attributed to several factors: increased producers’ profits and lower feed prices (as a result of record harvest of soybeans and corn in 2016 that have spurred hog production to increase globally); U.S. packers’ added capacity; and strong demand from China.

In Singapore, U.S. pork/pork products and offal faced strong competition in 2016 from Brazil, Australia, Netherlands, China, and Spain. While U.S. pork’s sales went down in 2016 by more than 51% at US$14 million, the long terms prospects in Singapore are relatively good as pork is a major protein food staple for the majority of the population, and good prospects in high-end outlets for U.S. pork Where consumers pay premium price for higher quality food products.

» Opportunities

Due to scarce agricultural land and resources, Singapore imports nearly 90% of its food products from abroad and this, in turn, generates a vibrant and diverse retail foods market, with an assorted range of food products, from basic to high-end organic foods. U.S. products have gained traction in recent years, but competition is fierce. The United States was the fourth largest supplier at US$872 million in 2016 and with a market share of 8%, behind Malaysia, Indonesia, China, and Australia at number five. The U.S. is a major exporter of fresh fruits, dairy products, breakfast cereals, meat products, snack foods, and pet food.

Growth in consumer spending for consumer goods and food and beverages is expected to stay strong in 2014-18, at an average increase of 5% in local currency terms. According to the Singapore Department of Statistics and Research, as of December 2016, retail sales of supermarkets have grown by 1.2% month-on-month and 0.8% year-on-year. Despite the weaker global economic climate and increased competition from online grocers, experts expect strong sales at supermarkets over the next few years due to the effective marketing strategies adopted by leading supermarket chains; higher prices for goods; more willingness to spend on quality; more people choosing to dine at home; and a rising interest in cooking due to popularity of cooking shows on television and social media.

Singapore is at the crossroads of major air and sea routes in the Asia Pacific region and serves as a hub and major transshipment center for much of the Southeast Asian region and Indian subcontinent. Singapore’s important role in regional trade is demonstrated by the fact that re-exports comprise 45-50% of total exports. The country’s strategic location also contributes to Singapore’s position as a regional food showcase and headquarters for many major food and agricultural multinationals.

» WEB RESOURCES

Agri-Food and Veterinary Authority of Singapore (AVA)
https://www.ava.gov.sg/

Singapore Manufacturing Federation (SMF)
http://www.smfederation.org.sg/

Singapore Business Federation
http://www.sbf.org.sg/

Singapore Fruits & Vegetables Importers & Exporters Association (SFVA)
http://www.singaporefva.com/

Singapore Chefs Association (SCA)
http://www.singaporechefs.com/

Restaurant Association of Singapore (RSA)
http://ras.org.sg/

Singapore Hotel Association (SHA)
https://www.sha.org.sg/

U.S. Department of Agriculture (USDA)
https://www.usda.gov/

U.S. Department of Agriculture, Singapore
Contact: Ms. Ira Sugita, Agricultural Specialist
Email: Ira.Sugita@fas.usda.gov
Contact: Ms. Alice Kwek, Agricultural Marketing Specialist
Email: alice.kwek@fas.usda.gov


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