DPM Heng Swee Keat at the Singapore Week of Innovation and Technology (SWITCH) 2024

Mr Lee Chuan Teck, Chairman, Enterprise Singapore, 
Excellencies, 
Ladies and gentlemen,

Very good morning and a warm welcome to the Singapore Week of Innovation and Technology, or SWITCH, 2024!

I first attended SWITCH in 2017.

We had just launched the report of the Committee on the Future Economy, or CFE, a few months earlier. The report sets out 7 mutually reinforcing strategies to achieve our vision to be pioneers of the next generation. Harnessing science and technology, building deep skills, and forging global connections in innovation were common threads in the strategies. We launched 23 Industry Transformation Maps or ITMs, with Phase 1 from 2016 to 2020, and Phase 2 or ITM 2.0 underway until 2025. We have achieved good results so far. Between 2016 and 2023, our economy grew 2.8% per annum, while labour productivity grew by 2.1% annually, despite the sharp downturn brought by the Covid pandemic. Some sectors grew even faster, such as Information and Communications at 9.1%, Aerospace at 8.8%, and Electronics at 8% per annum.

ITM 1.0 and ITM 2.0 sought to transform existing sectors, as we believe that entrepreneurs and the markets, not government, should decide on the winners. Instead, the government’s role is to facilitate, to nurture and to intervene where there are market failures.

Transformative potential of deep tech

The first edition of SWITCH in 2016 was just a few months before we issued the final CFE report in early 2017. Since then, advances in technology and innovation have accelerated.

From B2C and B2B fintech and consumer tech; To smart factories and dark factories where automation, robotics, and humanoid robots perform tasks silently, efficiently; To medtech, biotech, EVs, renewable and other breakthrough energy solutions; To digital technologies like blockchains, AI, and digital twins of factories and even cities. There is not a sector of the economy or our lives that is not undergoing transformative change.

The pace of technology development has accelerated in recent years, especially in microelectronics, digitalisation and AI. Open AI recently launched the o1family of LLMs which are designed with better reasoning capabilities. Google’s new Sycamore quantum computer chip is 241 million times faster than the one released in 2019. NVIDIA’s announcement of the Blackwell architecture has generated huge interest, with chips sold out until next year. SpaceX executed the world’s first landing of a rocket at its launchpad. Nobel Laureate Demis Hassabis and his team have harnessed AI to predict biomedical structures.

All these advances will in turn boost research in life-sciences, materials and green energy. These are necessary to help humanity address some of the major challenges that confront us today. This is true whether we aim to decarbonise our economies and tackle climate change, or deal with the effects of ageing populations, or combat new viruses and bacteria that threaten human lives and livelihoods.Just last Friday, I launched our Aspire 2A and 2A+ supercomputers at our National Super Computing Centre, and met many researchers applying deep tech to areas like sustainable maritime fuels, and developing cures for cancer and heart disease.

Singapore’s economic transformation, the next phase

I spoke earlier about how we are implementing ITM 2.0 and preparing for the next phase of industry transformation.

For many years, Singapore has invested in R&D through our Research, Innovation and Enterprise Plans.Under the current RIE 2025 Plan, which covers 2021 to 2025, we have allocated $28 billion to support basic research and promote innovation.

We are now preparing for RIE 2030, to cover 2026 to 2030.With the acceleration in science and technology, we will raise our emphasis on and our investments in science, technology, and innovation. We will enhance support for start-ups, especially deep tech ones, and help them scale up. And we will design stronger linkages between RIE 2030 and our next phase of industry transformation –– to drive the next bound of growth, and create new growth sectors and areas.

At the same time, we hope to contribute to solutions that tackle global challenges like ageing populations and climate change. Our aspiration is for Singapore to be a Global-Asia node of technology, innovation and enterprise, where the best minds from around the world come together to work on global solutions to global challenges. So once again, let me warmly welcome delegates from all over the world at SWITCH, and I am very happy to see so many of our Ambassadors here with us this morning.

Deep tech @ SWITCH

Today, SWITCH has grown into a flagship startup event on the global calendar. It has expanded to feature a wide range of technologies, including AI, biotech, and green tech. This year’s edition of SLINGSHOT received a record high of over 5,500 applications from over 150 markets. We are expecting around 20,000 attendees from 100 countries, almost one third more than last year. This growth validates the value of SWITCH. Participants like Somnial and Krosslinker, who were domain winners at SLINGSHOT last year, have grown their companies with the experience and networks gained. So congratulations to Enterprise Singapore and all your partners!

SWITCH’s emphasis on deep tech in this year’s edition is very timely, and aligns with our upcoming RIE 2030 Plan. Over the next 3 days, we will discuss AI, quantum, robotics, space tech, bio tech, green tech and many other important topics. Many of these are general purpose technologies, which can be transformative across different sectors and industries. They can create entirely new industries, new value chains, and new jobs. We must therefore focus on exploring and investing in deep tech to create a better future. 

But deep tech is both difficult and expensive to get right. The Engine at MIT, a deep tech incubator and accelerator which is joining us at SWITCH this year, calls it "hard tech" or "tough tech".

There are significant technological as well as market risks to deep tech innovation. It takes many years of intensive scientific research, with investments in deep and cross-disciplinary talent, and the use of cutting-edge equipment. There is no guarantee of breakthroughs, and competitors could emerge with better products during the long gestation periods. Deep tech companies also have to navigate the "valley of death" between scientific research and translation to commercial success. Because of these difficulties, deep tech grows best in a strong and vibrant ecosystem with deep pools of scientific expertise, talent, and patient capital.

As a Global-Asia node for technology, innovation and enterprise, Singapore believes that we can provide such an ecosystem to serve the region and the world. We started our innovation journey more than three decades ago by building capabilities in emerging areas like electronics and biotech. Over the years, we kept our ecosystem open, trusted and credible, and welcomed like-minded collaborators from all around the world. Today, more than 47,000 research scientist and engineers across different deep tech domains, 4,500 tech startups, 500 venture capitalists, and 220 incubators and accelerators have chosen Singapore as their home base. Their efforts have yielded results. Singapore is ranked top in Asia, and 4th globally, in the World Intellectual Property Office (WIPO)’s Global Innovation Index.

The progress we have made is satisfying, but we must not stay still. An even more exciting phase is ahead. We must strive to both deepen our ecosystem in Singapore, and strengthen our connections with innovation nodes around the world. So today, let me share seven initiatives that we are working on to achieve the promises of deep-tech, and we invite all of you to join us. 

Strengthening our innovation ecosystem to support deep tech

First, we will continue to deepen research in promising emerging areas, and enhance our scientific capability. This is crucial for deep tech innovation.Singapore is home to universities, research institutes and academic-medical centres in hospitals which have established strong research credentials globally. Three of our universities are ranked in the top 50.They collaborate closely with corporates in industry-relevant R&D. Over the years, we have established more than 20 corporate labs, including one with Applied Materials which I launched last week. Our research entities are collaborating with partners around the world. We host the Campus for Research Excellence and Technological Enterprise or CREATE. This is a global co-laboratory of research centres set up by top global universities and research institutes in Singapore.Just a few weeks back, we launched a decarbonisation challenge involving top universities from all over the world. We also recently launched a $120 million AI for Science Grant to promote AI proficiencies and the use of AI among researchers. We have also set up AI Singapore as our national AI R&D programme, a programme office, to power Singapore’s AI efforts through partnerships between academia, industry and international partners. We welcome ideas from all of you as we develop our RIE 2030 Plan.

Second, we will deepen our collaboration with industry to distil and prioritise real-world challenges that are worth solving.

I am pleased to announce the launch of the inaugural AI Open Innovation challenge, inaugural Nordic Open Innovation challenge, and the 6th edition of the Sustainability Open Innovation Challenge. In these challenges, companies identify problem statements which are most relevant to their businesses. For example, in the AI Open Innovation Challenge, AECOM, Park Royal, Safran, Seatrium, and Toyota Tsusho are seeking AI solutions to improve building design, monitor coastlines, and improve the efficiency and safety of factory and shipyard operations. This will strengthen industry support and demand for innovative products and services.

Third, we are partnering globally to anchor and grow deep tech founder talent in Singapore. This involves both nurturing our home-grown talents and drawing in top minds from around the world.One example is Enterprise Singapore’s and Temasek’s partnership with Breakthrough Energy, to launch the first-ever global hub for its Fellows programme in Southeast Asia. I am pleased to announce that Lim Kang Hui and Dr Haw Kok Giap of CRecTech, and Saikiran Reddy and Dr Wang Xun of Lincore have been selected to join the first cohort of the Breakthrough Energy Fellows – SEA programme. They will receive support from a global network of industry partners, mentors, investors and experts, as well as additional funding and resources. I hope they can take their solutions to the next level, and contribute to global climate action through their innovations in clean fuels and recycling critical raw materials.

We are also anchoring venture builders to accelerate the development of deep tech startups out of Singapore.

I am pleased to announce that Enterprise Singapore will launch new partnerships with Founders Factory and Kreo Venture. In addition, Enterprise Singapore continues to deepen its partnership with venture builders that are already here, like Xora Innovation, ClavystBio, the Singapore Deep-Tech Alliance (SDTA), Blue Incube, and elev8.

Fourth, we are enhancing the capital markets to better enable local and global startups to access smart capital for their growth and innovation. Deep tech ventures need patient capital with longer time-horizons. Singapore, as a global financial centre with more than S$5.4 trillion of assets under management and more than 1,650 family offices, is well placed to do so. We have also formed a Review Group to strengthen equities market development, to provide an additional source of capital for start-ups.

In the first 9 months of 2024, total venture capital raised for startups in Singapore reached US$4 billion, with close to 370 deals.

Now this was a slight decline year-on-year, but well expected given the global decline in venture funding at around 15%. To stimulate greater private sector investments in Singapore-based deep tech startups, the Government will allocate an additional S$440 million to the Startup SG Equity scheme to invest alongside global and local investors. To better support deep tech startups through the early stages of their development, we will expand our funding support to cover early growth-stage companies, and raise the cap of total Government equity investment into each start-up from S$8M to S$12M. Next year, we will merge two Government-backed investor arms, SEEDS Capital and EDBI, to form SG Growth Capital. This will enhance our expertise in deep tech financing, and allow us to better support our deep tech start-ups.

Fifth, we are accelerating access to global markets for Singapore-based start-ups. While Singapore has a small domestic market, companies in Singapore can access regional and global opportunities through our network of Free Trade Agreements (FTAs), International Investment Agreements (IIAs) and the Avoidance of Double Taxation Agreements (DTAs), among others. The presence of more than 7,000 MNCs in Singapore is testament to the sound legal structures which give investors confidence. In turn, these MNCs work closely with local innovators and suppliers.

The Global Innovation Alliance (GIA) is another national platform to bridge Singapore to other innovation hubs globally and help start-ups in Singapore access opportunities overseas.

To date, Enterprise Singapore has supported over 600 startups in their internationalisation efforts, and more than a quarter of them have achieved substantial business and market traction. I am pleased to announce that we will expand the GIA to the Netherlands, with new innovation nodes in Amsterdam and Eindhoven.This will take the total number of nodes in the GIA network to 23, across 15 countries in Asia, Europe and the US. Startups in Singapore will benefit from the strong logistics infrastructure and connectivity that the Netherlands provides into Europe, and partnerships with Dutch corporates like Alliander, ASML, Philips and Shell.

Small is beautiful – integrated and connected ecosystems

I have spoken about our efforts to develop a vibrant and robust innovation ecosystem in five areas – science, industry translation, talent, financing, and access to markets. Singapore is committed to work closely with our regional and international partners on these. While the Singapore market is small in size, given our limited land and population, we have been striving to turn this into a strength. Small can be beautiful, if we provide innovators with a compact, nimble, trusted and well-connected ecosystem that facilitates innovation.

To enhance this strength, the sixth initiative is for Enterprise Singapore and the Economic Development Board to launch StageOne – a one stop startup focal point to bring local and global startup communities together. StageOne will support startups on their journey – from setting up shop in Singapore, to building new capabilities and connections, and eventually to grow and internationalise. ACE.SG will be the appointed operator for StageOne. JTC will also support StageOne with greenlane arrangements to facilitate the setup of foreign startups at JTC’s LaunchPad. Stage One will be launched by 1Q next year, with a physical centre to host the startups for the various programmes. This physical centre will bring together innovators and community builders to spark connections and help new players join the ecosystem. It will be an important complement to our network of Global Innovation Alliances, that builds a deep network of linkages to innovation nodes in Asia and around the world.

Seventh, we will deepen Singapore’s capabilities and networks, to study and debate the legal, ethical, policy and regulatory issues relating to the use and development of technology. Given the transformative impact of technology, especially deep tech, it is important for us to develop policies on the use of these technologies, without unnecessarily impeding innovation. For instance, Singapore has set up the AI VERIFY Foundation, in partnership with many industry members at the forefront of AI work, to develop frameworks and guidelines, testing platforms and standards on the use of AI. The Foundation has issued an AI governance testing framework and software toolkit.

Another example is the NUS AI Institute, which brings together researchers across NUS who work on AI. Its Governance and Policy thrust draws on that breadth to maximise the benefits of AI while minimising its risks and other ethical concerns. These include misinformation, managing intellectual property produced by machines, and the impact of technology on the development of our youth.

Conclusion

So let me now summarise my key points.

Innovation and technology are more relevant than ever to our modern society and economy. The major acceleration in technology over the past few years, particularly in deep tech, will shape the trajectory of human development for years to come.But growing deep tech is very difficult, as it is science, talent and capital intensive. Gestation periods are also long, with scientific and market risks.To support deep tech innovators and startups, we need a strong ecosystem. Singapore seeks to work closely with our partners to strengthen our innovation ecosystem, so that we can serve as a Global-Asia Node for technology, innovation and enterprise, and support innovators locally, regionally, and globally. We will continue to build on our frameworks and governance rules, to build and deepen trust in the use of AI and other deep technologies.

To conclude, I hope that our local partners and overseas friends attending SWITCH over the next three days will actively share your ideas on how we can collaborate even better with one another.

Please use the programmes at SWITCH to deepen your knowledge in emerging technologies and its relevance to the industry and our society. SWITCH is a wonderful opportunity to build new connections and grow your ideas – whether you are a founder looking for a team, or a start-up looking for investors, or companies with real problems to solve. I also hope that you will make the most of your time in Singapore to learn about our growing ecosystem and the opportunities it has to offer. We welcome you to use Singapore as a base to grow your business, and explore new opportunities in the region and beyond.

Together, we can harness innovation for good, improve the lives of people, and protect our planet. I wish you all a fruitful SWITCH 2024. Thank you.