Three Things To Know About Singapore

Comprised of more than 60 islands with a primary island city-state, Singapore has defied its modest geographical size throughout history, emerging as a critical business center with a reputation for exponential growth.

Despite having few natural resources, Singapore’s business-friendly environment and supportive government policies have established the country as a regional hub. Since its independence from Malaysia in 1965, Singapore has become one of the world’s strongest economies, anchored in political stability and low-risk development.

“Singapore is an extremely important hub for Asia and the world,” says Rangu Salgame, Chairman and CEO of Princeton Digital Group and BCIU Board Director. “The country, with its strong institutions, strategic location and vibrant culture, was the first choice for us when setting up the headquarters of our pan-Asian data center venture back in 2018. The years since have strongly validated that choice.”

Ahead are just a few of the opportunities and challenges Singapore’s government and business entities face in order to solidify the country as a leader in investor confidence.

Global Connectivity

For centuries, the island’s geographical location has played a critical role as a major trading port, serving as a link between East Asia and the Middle East. Today Singapore is one of the world’s most connected countries, located along global trade, shipping and aviation routes, and linked to over 600 ports in more than 120 countries worldwide. In the effort to further modernize its supply chain capabilities, last year the government launched the Tuas Mega Port Project, which is currently in development.

“The nation is building a massive new port, shifting its original location to the other end of the island,” says Caitlin Noone, BCIU’s chief operating officer. “It’s one of the world’s largest, most advanced ports, which is going to make Singapore an even stronger trading hub from a supply chain logistics perspective.”

A decade in the making, the first part of Tuas Mega Port officially opened in 2022. When fully developed in four phases, the Tuas port will be the world’s largest single container port, capable of handling up to 65 million TEUs annually, almost double today’s volume. The port will provide a singular, consolidated location for Singapore’s container activities, utilizing technology to reduce the number of transport movements to cut the burden on road infrastructure and the environment.

A Hub of Innovation

Consistently recognized as a smart city, the Singaporean government is investing in maintaining its reputation of innovation. In its latest economic plan, REI2025, the government allocated S$25 billion in research, innovation and enterprise.

“Singapore has created a great model around innovation in sectors that can thrive from a supportive ecosystem established by both policymakers and the private sector,” says Noone. “It’s allowed many interesting, innovative companies to emerge out of Singapore.”

Because Singapore has a diverse semiconductor industry, many leaders in the tech sector have manufacturing facilities there. The country plays a key role in the global supply chain for electronics, including storage and memory products. Future plans are to grow the industry through a mix of productivity, automation and upgrades to the product mix, utilizing the existing manufacturing infrastructure as a starting point.

Talent Development

Singapore’s bustling manufacturing sectors have attracted a lot of talent; however, like in many areas workforce development must remain a priority as industries — including health care, fintech and biopharma — undergo rapid digital transformations.

“Workforce development should continue to be a priority in next decade,” says Noone. “Singapore already is investing in skilling, reskilling, shifting priorities as the market evolves, as the world evolves.”

As the hiring market has seen considerable changes in the last five years, the government is committed to investing in training and strengthening a digitally capable workforce. In the electronics sector, Singapore trains more than 13,000 engineers and technicians annually in order to ensure a steady stream of industry-ready talent. Guidelines for hiring foreign talent are strict; however, Singapore’s workforce is consistently ranked as one of the world’s most competitive.

Looking ahead, Singapore is in an even better position to attract capital businesses and to be considered as the international headquarters for both startups and multinational corporations. Of course, challenges exist on a national level, and there will always be concerns about regional tensions and global supply chain sustainability. However, Singapore’s policymaking and transparent business regulations consistently make the country a top leader in the world for economic opportunity.

At the annual BCIU Eisenhower Global Awards Gala on November 13, 2023, in New York City we honored GIC’s Chow Kiat Lim and Citi’s Jane Fraser. To watch a replay of the program, visit: https://bciu.org/eisenhower-award/