Singapore Government Press Release
Media Division, Ministry of Information and The Arts,
MITA Building, 140 Hill Street, 2^nd Storey, Singapore 179369
Tel: 837-9666

The slowdown in the US economy and the accompanying weakness of its technology sector has led to a subdued mood in the global economy. Occupying the headlines are reports of lower corporate profits, corporate restructuring and even corporate bankruptcies involving what were only recently, highflying companies with market caps of billions of US$. However, many analysts believe these are short-term problems, and that the US economy should recover next year. It will revert to its role as the global engine for growth, and our economy will rebound too.

In the USA, your area of interest, infocomm technology has helped to introduce irreversible changes in the way business is structured, conducted and managed. Singapore too, is experiencing similar changes. Our B2B sector continues to grow. Large enterprises, both local and foreign, are developing online strategies, adopting new infocomm technologies and remaining relevant in their businesses and management. In the process, you are setting the example and pace for smaller enterprises. This is reflected in the encouraging growth of our infocomm sector in recent years. In 1998 the sector had sales of S$20 billion. IDA’s survey for last year showed that the industry had grown by 30% to reach S$26 billion for last year. While the domestic market accounted for slightly more than half of this value, the export market is likely to overtake it by next year.

Another interesting survey result is that the infocomm industry’s principal growth areas were e-Business and e-Commerce, Web Design and Development, IT Outsourcing, Mobile and Wireless Communications and Customer Relationship Management.

The key question we should all ask ourselves is how can we more effectively harness our potential and continue to drive forward? The answer lies in growth through both innovation, and globalisation.

Let me first start on sustaining growth through innovation. Indeed, infocomm innovation in Singapore is not something new. The Ericsson Cyberlab in Singapore, set up in 1998, developed the A4-sized touch-screen Delphipad. This device lets users surf the Net, chat with each other, and send hand written messages. More recently, HP’s latest Jornada series Pocket PCs were developed and are being made completely in Singapore.

Our local infocomm companies are also innovating rapidly. Let me give you a few examples of our home-grown companies that have succeeded through innovation. Building on its expertise in facility management solutions, Eutech Cybernetics has developed a Hospital Facilities and Operations Management System with the help of the Government’s Innovation Development Scheme. The newly-developed System focuses on the smooth running and management of hospital operations, facilities and resources. Another example is EdgeMatrix, whose technologies enable businesses to be conducted across multiple access points of information, including WAP, SMS, pagers, the Web, and e-mail. Its product, WAPman, is one of the world’s most frequently downloaded colour micro-browsers for WAP mobile phones. A third example of innovation is Cellonics. This is a spin-off from the Centre for Wireless Communications at the National University of Singapore. Its breakthrough technology, modelled on biological cell behaviour and only launched at CommunicAsia a few days ago, takes an unconventional approach to the encoding, decoding and transmission of digital information.

The Government recognises that innovation is the key to sustaining growth in the infocomm industry and will continue to build a conducive environment for entrepreneurial spirit to thrive. Where helpful, we will expand the menu of industry grants. One example is the recently-introduced Writing Down Allowance for approved intellectual property. This scheme encourages companies to acquire intellectual properties that will enable them to develop and create innovative products and solutions.

IDA administers several other sector-specific incentive schemes. One such programme, the Wired With Wireless programme, aims to proliferate wireless pilot projects and develop Singapore into a living lab and launch pad for wireless developments. The e-Business Industry Development Scheme, or eBIDS, will also support companies in adopting e-Business capabilities and developing electronic transactions as an imperative for business. It will support local enterprises in their knowledge acquisition, business process optimisation, and e-Business value creation.

In addition, we have revised Government tenders to allow companies to co-own selected intellectual property developed from some government projects. We will also facilitate more Government-industry collaborations on infocomm innovation. One such collaboration is the ASP Competency Centre. This Centre was jointly established by IDA, Nanyang Technological University and Sun Microsystems. It will assist ASPs and Internet Data Centres by providing test beds to start-ups, as well as consultancy, auditing and certification services.

As our companies innovate and develop their products, solutions and services, they must also have the vision and foresight to globalise, to spread their roots beyond the limits of our small domestic market. Long-term growth of the industry hinges on the use of Singapore as an ideal test-bed and launch pad for our products and services to Asia and the world.

System Access is a good example of a local company that has done us proud internationally. Its flagship software product, netSymbols, powers front-to-back applications and comprehensive information infrastructures for the banking industry. The company has successfully marketed the product in more than 20 countries around the world through channel partners. SQL View and PeridotHealth Systems are also examples of Singaporean entrepreneurship which have gone regional. SQL View developed the Electronic Registry System for the Ministry of Finance, and built on this experience to develop the Knowledge Repository Information System. It has established a Hong Kong office to spearhead its regional expansion. On the other hand, PeridotHealth Systems developed its H.careOne product to provide fully integrated medical information systems, and has successfully marketed it to healthcare professionals in overseas markets.

The successful merger of AceFusion and Savi Technology is an example of a local company gaining global inroads by merging with a strong global player. This marriage leverages on each company's domain knowledge, market presence, operating and sales infrastructure in logistics solutions to cross-penetrate the US and Asia Pacific markets. A further example of globalisation is Ecquaria Technologies. It was able to leverage its technology partnership with Sun Microsystems to showcase its flagship product, Ecquaria Service-Oriented Platform, at the Sun iForce Ready Center in California earlier this month. The product has been implemented for the Singapore Government’s Public e-Services Infrastructure.

These are only some of the examples of made-in-Singapore companies that are taking advantage of the opportunities available beyond our shores.

To support such globalisation efforts, the Government has been aggressively creating platforms from which our local companies can reach regional and global markets. On its part, IDA has fostered a strong working relationship with local infocomm industry associations like the SITF and co-operate on a wide array of issues and projects. These efforts include creating invaluable links with IT industry associations in other countries, such as India. IDA has also initiated a small but significant presence in key markets overseas to promote Singapore’s vibrant infocomm industry, and to help our companies form alliances with infocomm companies in these locations. Early last year, IDA opened its first marketing outpost in the United States. And just last month, it established an office in Bangalore. IDA's Indian office will seek to foster strategic alliances with key overseas infocomm companies, trade associations and research institutes in India. IDA also plans to open a similar office in China later this year. It has been laying the groundwork by leading a group of Singapore infocomm companies in a successful trade mission to Shanghai and Beijing last month.

Today’s exhibition is a milestone event in the local Infocomm scene. It marks the first time that so many local IT companies are coming together to showcase their impressive range of innovative products and services. Going forward, innovation and globalisation will be the key to sustaining growth in the infocomm industry.

On that note, let me end by congratulating the SITF and all the participating companies for contributing to the development of our infocomm industry. In particular, I am glad that the SITF has started the Singapore Enterprises Chapter to promote Singapore IT enterprises. I wish all of you every success in reaping the rewards from the many exciting opportunities that lie ahead.