Singapore: A Global HydrohubSingapore Economic Development Board

EDB provides this presentation (including oral statements) gratuitously for information only and not for any other purpose.

While care has been expended in the preparation of this presentation, EDB hereby disclaims all liability including, but not limited to, inaccuracies, incompleteness or lack of suitability for purpose of any information in the presentation.

2

ASIA: A DOMINANT DRIVER OF GROWTH

3.5Dollars of growth

generated by Asia for every

dollar generated by the US

27% share of 2016 global trade

accounted for by Asia-10,

versus 11% by the US

42% of intraregional exports

for Asia-10 economies,

versus 15% to US

and 11% to EU-10

2

Source: DBS Group Research. “Asia-10” comprises China, Hong Kong, Taiwan, Korea, Singapore, Malaysia, Thailand, India, Philippines, Indonesia

Agriculture

3

Myanmar

GDP ’16: US$ 62.6 b

GDP Growth: 7%

Population: 53.9m

Key Sectors:

Vietnam

GDP ’16: US$ 194 b

GDP Growth: 6.7%

Population: 92.7m

Key Sectors:

Thailand

GDP ’16: US$ 395 b

GDP Growth: 3.2%

Population: 68m

Key Sectors:

Key Sources:

PWC, 2017, Winning in Maturing Markets

Trading Economics, 2017

Brunei

GDP ’16: US$ 12.9 b

GDP Growth: -3.8%

Population: 0.42m

Key Sectors:

Cambodia

GDP ’16: US$ 18.05 b

GDP Growth: 7.2%

Population: 15.6m

Key Sectors:

Philippines

GDP ’16: US$ 292 b

GDP Growth: 6.6%

Population: 102m

Key Sectors:

Indonesia

GDP ’16: US$ 862 b

GDP Growth: 5.02%

Population: 259m

Key Sectors:

Malaysia

GDP ’16: US$ 296 b

GDP Growth: 4.3%

Population: 31.7m

Key Sectors:

Apparels

Oil and Gas

Footwear

Electronics

Mining

Furniture

Automotive

Laos

GDP ’16: US$ 12.4 b

GDP Growth: 7%

Population: 6.8m

Key Sectors: ASEANGDP ’16: US$ 2.4 trillion

GDP Growth: 4.6%

Population: 635m

ASEAN: The New Manufacturing Powerhouse

Proximity to Source and Consumer Markets

Investments into SEA have reached

an all-time high

FDI inflows into ASEAN totalled

US$136.2b in 2014, making it the

largest FDI recipient in the developing

world

SEA has an abundance of natural

resources

Significant market share for supply of

commodities. E.g. palm oil (87%), rice

(29%), nickel (26%).

Southeast Asia’s diversity of

manufacturing capabilities hold

much promise.

E.g. Vietnam specialises in textiles &

apparel, Thailand in automotive parts,

Singapore & Malaysia in high-tech

products

Global MNCs are rethinking their

supply chain & production strategies

given rising costs in China.

Manufacturing investments into SEA

rose from US$18bn in 2012 to

US$41bn in 2013.

ASEAN is home to 600mil people,

with a consumer market worth

~US$1.2trn Larger than India and

close to that of coastal China.

ASEAN’s emerging middle class

consumers will drive demand for

more sophisticated products &

services. Middle class population is

estimated to more than double from

190mil in 2012 to 400mil in 2020.

Proximity to source

Consumer market

I N T R O D U C T I O N

149.8%2016

92.7%2004

88%2016

MEAN YEARS OF

SCHOOLING (2016)

10.7

LITERACY RATE

(2016)

97%

2016-2017

24th worldwide

1st in Asia

54th worldwide

6th in Asia

World University Rankings 2016-2017,

Times Higher Education

3

MOBILE PHONE

PENETRATE RATE

5.53 million

TOTAL

POPULATION (2015)

CITIZENS

3.37 million

PERMANENT RESIDENTS

527,700

GOOD GOVERNANCESTRONG INSTITUTIONS

ADAPTABILITY

MERITOCRACY

DIVERSITY

RULE OF LAW

FORWARD

LOOKING

HOUSEHOLD ACCESS

TO BROADBAND

65%2004

VISITOR

ARRIVALS

(2016)

16.04million

Singapore Tourism Board

1st

MOST LIVEABLE

ASIAN CITY

Mercer’s Quality of Living Survey 2017

2nd

EASE OF DOING BUSINESS

World Bank’s Doing Business 2017 Report

INTEGRITY

SINGAPORE STUDENTS RANKED

AMONG THE TOP IN READING,

MATHEMATICS AND SCIENCE

Programme for International

Student Assessment

1st

IN STEM (SCIENCE, TECHNOLOGY,

ENGINEERING AND MATHEMATICS)

EDUCATION

Singapore at a Glance

Singapore has grown into a melting pot for

startups across Southeast Asia. For the

aspiring entrepreneur, the presence of a

dynamic and multicultural generation as well

as supportive business and financial

infrastructures make Singapore a great place

for starting a business and subsequently

making a global impact

Business Fast Facts

I N T R O D U C T I O N

4

Located in the Heart of Asia to drive Speed-to-Market

Well connected to region and beyond

Physical connectivityBest airport in the world: 1.96 mil tons handled in 2016 • >121 scheduled airlines • 381 cities • >80 countries •

>7,000 weekly scheduled flights

World’s busiest transhipment port: 30.59 mil TEUs handled in 2016 • 200 Shipping lines • 600 ports • >120

countries • Handle over 2,000 containers per vessel with a turnaround time of <12h

Good international relationshipsMost extensive FTA Network in Asia covering 60% of the world’s GDP

Part of the ASEAN Community

Efficient customs Total supply chain security Air & sea port infra

Electronic permit

applications

90% processed within 10

min

Physical cargo clearance

• 90% cleared within 8

minutes

• 100% cleared within

13 minutes

Special schemes

• Zero GST scheme

• Major export scheme

Secure and smooth supply

chain

• Secure Trade Partnership

(STP) and STP-Plus

• MRAs with China, Japan,

South Korea & Canada

Compliance with global

standards

• World Customs

Organisation (WCO)

Advance Export

Declaration (AED),

Regulated Air Cargo

Agents Regime (RCAR)

Future Tuas Port

• Relocation of city

terminals to Tuas, 1st

phase operational by

2027

• Capacity increase from

35mil to 65mil TEUs

Changi Airport

Expansion

• Redevelopment of

1080 ha of land for

5th terminal, MRO and

air cargo operations

Singapore offers the most extensive FTA network

Business connectivity through trade & tax

agreements

Worldwide: 21 FTAs, 41 IGAs, >70 DTAs

Excellent Business

Infrastructure +

Connectivity

ASEAN/ SG FTA

SINGAPORE ASEAN

11 Bilateral FTAs

9 Regional FTAs

3 Concluded/Signed FTAs

China-SG FTA

India-SG Comprehensive Economic Cooperation Agreement

Japan-SG Economic Partnership Agreement

Korea-SG FTA

SG-Australia FTA

New Zealand-SG Comprehensive Economic Partnership

Panama-SG FTA

Peru-SG FTA

SG-Costa Rica FTA

SG-Jordan FTA

United States- SG FTA

ASEAN Free Trade Area

ASEAN-Australia-New Zealand Free Trade Area

ASEAN-China Free Trade Area

ASEAN-India Free Trade Area

ASEAN-Japan Comprehensive Economic Partnership

ASEAN-Korea Free Trade Area

EFTA-SG FTA

GCC-SG FTA

Trans-Pacific Strategic Economic Partnership

Trans-Pacific Partnership

EU-SG FTA

Turkey-SG FTA

APAC

Most extensive FTA network

in Asia covering 60% of the

world’s GDP

Introduction to Singapore EDBLead government agency that strategizes & shapes Singapore’s future business & economy

OUR MISSIONWe create for Singapore, sustainable economic growth with

vibrant business and good job opportunities

Attract

Foreign

investments

Grow

industry verticals

Point Singapore

towards the

future

WHAT WE DOIndustry Development and

Business Facilitation

OUR INDUSTRY SECTORS AND CLUSTERSS I N G A P O R E E C O N O M I C D E V E L O P M E N T B O A R D

I n ou r wo rk a t EDB, we f ocus on the f o l lowing indus t ry sec to rs tha t a re impor tan t t o ou r economy.

C l i ck on the images to f i nd ou t more .

Aerospace

Creative Industries

Energy & Chemicals

Logistics & Supply Chain Management

Medical Technology

Pharmaceuticals & Biotechnology

Cleantech

Consumer Businesses

Electronics

Information & Communications Technology

Oil & Gas Equipment and Services

Natural Resources

Precision Engineering

Urban Solutions & Sustainability

HOW EDB CAN SUPPORT COMPANIESS I N G A P O R E E C O N O M I C D E V E L O P M E N T B O A R D

Information on Singapore’s business

environment, how to set up in Singapore, and

how to find the right talent for your company.

I N F O R M AT I O N

Link up to ecosystem partners including but not

limited to government agencies, research

institutes, academic institutions, think tanks, and

startup communities.

C O N N E C T I O N S

Depending on your plans for growing in

Singapore, we may be able to offer a financial

or tax incentive to help you grow your

Singapore operations.

I N C E N T I V E S

W e c a n a l s o f a c i l i t a t e i n t r o d u c t i o n s t o S i n g a p o r e g o v e r n m e n t a g e n c i e s , w h o m a y b e r e l e v a n t t o c o m p a n i e s ’ i n t e r e s t s s u c h a s :

ANNUAL GROSS DOMESTIC PRODUCTI N F O R M A T I O N O N S I N G A P O R E

Labourintensive

Skills intensive

Knowledge + Innovation

Capital intensive

Technology + Services

Source: Department of Statistics Singapore (2018)

2017 GDP Growth: 3.6%2018 GDP Growth Forecast: 1.5% to 3.5%

Source: Ministry of Trade and Industry, Feb 2018 US$1.00 = S$1.3807

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

1960 1970 1980 1990 2000 2010

GDP at Current Prices

GDP at Current Prices

Manufacturing 19.20%

Business Services14.80%

Financial and Insurance

13.30%

Wholesale & Retail

17.60%

Transport and Communication

11.40%

Construction4.30%

Others19.40%

2017 GDP: S $447.3B (USD $324 B)2017

70% of global

market share for

jack-up rigs

World’s 3rd largest

export refining hub,

with 1.3m barrels

refined per day

Largest aviation hub

in Asia, with ¼ of

the Asian

Maintenance, Repair

and Overhaul

market

Aerospace

World’s largest hard

disk drive media

producer with 40% of

global market share.

Hard Disk Drive Media Chemicals

Medical Devices Marine & Offshore

Global “HydroHub”,

with 180 water

companies

Water

Major site for 14 out

of 25 top

semiconductor

companies, producing

>10% of front-end

equipment globally

Semiconductors

Pharmaceuticals

Analytical

Instruments

>50% of

microarrays and

mass

spectrometers

Accounts for global

output of 70% of wire

bonders and 30% of

hearing aids

50% world market

share for

microarrays and

mass spectrometers

30 plants

manufacturing 5 out

of the world’s top

10 drugs

Complex Components

Singapore’s Leadership Positions in Manufacturing & Hi-tech

INTERNATIONAL RANKINGSI N F O R M A T I O N O N S I N G A P O R E

Global Investment Ranking

Logistics Performance in Asia

High Skilled Labour

Ease of Doing Business

Labour Force

Innovation Input

Rank Country

1 New Zealand

2 Singapore

3 Denmark

4 Hong Kong (China)

5 Republic of Korea

Source: World Bank’s Doing Business 2017 Report

Rank Country

1 Singapore

2 US

3 Taiwan

4 Switzerland

5 Belgium

Source: BERI’s 2017 Labour Force Evaluation

Rank Country

1 Singapore

2 Sweden

3 Switzerland

4 Finland

5 United States of America

Source: Global Innovation Index 2017 (Innovation Input Sub-Index)

Source: Global Innovation Index 2017 (Investment Sub-index)

Rank Country

1 Singapore

2 Hong Kong

3 Japan

4 Republic of Korea

5 Taiwan

Source: World Bank’s Global Logistics Performance Index 2016

Top 10 Countries with the Greatest High-Skilled Employment Share (%)

63.256.2

52.251.551.449.948.547.847.446.5

Luxembourg

Switzerland

Israel

Iceland

Netherlands

71.4

71.7

72.2

74.3

75

Denmark

Albania

United States

Canada

Singapore

Source: World Economic Forum Global Human Capital Report 2017

INFRASTRUCTURE & CONNECTIVITYI N F O R M A T I O N O N S I N G A P O R E

Tuas Biomedical Park

CleanTech Park

Woodlands & North Coast Wafer Fab Parks Seletar Aerospace Park

Changi & Loyang Aerospace Parks

Offshore Supply Base

Tampines & Pasir Ris Wafer Fab Parks

Jurong Island

Industrial ParksBusiness Parks Ports

Changi Airport

Pasir Panjang Port

Keppel Port

Jurong Port

Sembawang Port

Serangoon & Ang Mo Kio

Co-location Data Centres: Keppel Digihub, NTT, I/O ST Electronics, Indostat, Telstra, Epsilon

Tai Seng & Chai Chee Technopark

Co-location Data Centres: Singtel, Global Switch, NTT, Tata Comms, Pacnet, Savvis, NCS, 1-Net, AT&T, Telehouse

Changi Business ParkCo-location Data Centres: Singtel, Keppel Datahub, Fujitsu, BT Global Services, Telin

Pioneer & International Business Park

Co-location Data Centres: Tanjong Kling Development, Equinix SG2, Digital Realty Trust, M1, Viewquest

One-NorthBiopolis, Mediapolis, Fusionopolis, LINK, LaunchPad

Co-location Data Centres: Equinix SG1 & SG3; ICONZ. Webvisions; Ato Origin, Crimson Logic, CITIC Telecom, Ascenix, Singtel

SINGAPORE’S CORPORATE TAX REGIMEI N F O R M A T I O N O N S I N G A P O R E

0%

Capital Gains Tax

0%

Withholding Tax on Dividends

10%

Withholding Tax on Royalties

15%

Withholding Tax on Interest

Corporate Tax Rates

Companies are taxed at a flat rate of 17% on chargeable income

Broad-Based Tax Relief Schemes

Wage Credit Scheme

Tax Exemption for New Start-Up Companies

Partial Tax Exemption for All Companies

Deduction of Expenses

Incurred before Commencemen

t of Business

For further information, please refer to : http://www.iras.gov.sg

MANPOWER & TALENT LANDSCAPEI N F O R M A T I O N O N S I N G A P O R E

Singapore has a diverse and skilled workforce

Post-Secondary, Tertiary & Institutes of Higher Learning

Scie

nce

& T

ech

no

logy

Bu

siness

Profile of Degree Holders in the Labour Force

Source : Comprehensive Labour Force Survey 2016, MOM

Total760 400 (100%)

Singapore474 500 (62.4%)

Local Autonomous Universities

279 400 (58.9%)

Private Education/

Training Institutions

195 400 (41.1%)

Outside of Singapore286 000 (37.6%)

BA: Business & AdministrationEng: Engineering SciencesH&S: Humanities & Social SciencesIT: Information TechnologySci: Natural, Physical, Chemical &Mathematical Sciences

57.2 %

5.5 % 9.07 % 9.18 %1.39 %

0

20

40

60

80

BA Eng H&S IT Sci

22.4 %

28.3 %

12.96 %

6.23 %9.1 %

0

5

10

15

20

25

30

BA Eng H&S IT Sci

Field of study (%)

30.3 %

22.1 %

10.42 % 10.91 %6.71 %

0

10

20

30

40

BA Eng H&S IT Sci

MANPOWER & TALENT LANDSCAPEI N F O R M A T I O N O N S I N G A P O R E

Source : Occupational Wage Survey, Manpower Research & Statistics Department, MOM

Source: Comprehensive Labour Force Survey, MOM

S$ 13,000 Chief Operating Officer/General Manager

S$ 9,500 Managing Director/Chief Executive Officer

S$ 8,537 Chief Information Officer/Chief Technology Officer

S$ 9,300 Software And Applications Manager

S$ 8,100 IT Service Manager

S$ 7,606 Budgeting And Financial Accounting Manager

S$ 7,452 Business Development Manager

S$ 7,400 Human Resource Manager

S$ 7,000 Manufacturing Plant/Production Manager

S$ 6,711 Sales And Marketing Manager

S$ 6,500 Advertising/Public Relations Manager

S$ 6,298 Administration Manager

S$ 5,974 Supply And Distribution/Logistics/Warehousing Manager

S$ 5,188 ICT Sales Professional

S$ 4,702 Accountant (Excluding Tax Accountant)

S$ 4,127 Network, Servers And Computer Systems Administrator

S$ 3,600 Public Relations/Corporate Communications Professional

S$ 5,500 Civil Engineer

S$ 4,828 Electronics Engineer

S$ 4,796 Chemical Engineer

S$ 4,703 Industrial And Production Engineer

S$ 4,375 Mechanical Engineer

S$ 4,204 Electrical Engineer

2016 Median Basic Monthly Wage by Occupation (All Industries)

10.5%

55.1%

10.8%

4.7%

23.5%

17.1%

83.9%

18.1%

11.5%

0.9% 3.3%

19.4%

33.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

By Industry By Broad OccupationalGroup

By Highest QualificationObtained

2016 EMPLOYMENT: 2.165 M

Services

Others

Construction

PMETs

Clerical, Sales &

Service Workers

Pdn & Transport Operators,

Cleaners & Labourers

Below Secondary

Secondary

Post-Sec

(Non-Tertiary)

Diploma & Prof

Qualifications

Degree

Others

Manufacturing

19

SINGAPORE’S WATER STORYWATER SELF-SUFFICIENCY BY YEAR 2060

"Our combined efforts to deal with the water challenge have turned our

vulnerability into a strength. Over the years, our water industry has grown

into a dynamic and vibrant part of the Singapore economy”.- PRIME MINISTER LEE HSIEN LOONG

20

ENVIRONMENT AND WATER IDENTIFIED AS KEY GROWTH INDUSTRY SINCE 2006$670 MILLION SET ASIDE FOR WATER R&D AND MANPOWER DEVELOPMENT

• In 2006: National Research Foundation set up

under the Research, Innovation & Enterprise Council chaired by Singapore Prime Minister

• Water industry generates over S$2.2 billion in annual value-add to economy and 14,000 jobs today, exceeding 2015 targets of S$1.7 billion and 11,000 jobs.

• Goals by 2020:

• S$2.85 billion to GDP• 15,000 jobs

21

SINGAPORE – GLOBAL HYDROHUB

>180 WATER COMPANIES CONDUCTING ACTIVITIES ACROSS THE WATER VALUE CHAIN

Upstream players

Midstream players

Downstream players

Components suppliers(e.g. pumps, valves, membranes,

sensors, pipes)

Water treatment systems and system integrators

EPC, turnkey engineering solution providers, project developers and

utility operators

22

KEY WATER COMPANIESWIDE ARRAY OF ACTIVITIES IN SINGAPORE SPANNING REGIONAL HQs, R&D AND MANUFACTURING

• Greater Asia HQ

• Smart Water CoE

• Global Command Centre

• Leading local desalination

player

• Manufacturing of

membranes / systems

• APAC HQ ex-China

• Global Supply Chain

Management hub for e-

desal technology

• Leading local utilities player

• Recently launched Global

Asset Management System

at Jurong Island

• Local EPC company

diversifying into Water

• Constructing Singapore’s 3rd

desalination plant at Tuas

• Local start-up manufacturing

3D printed nano composite

membranes

• APAC Ex-China HQ

Local Companies

Foreign MNCs

• Global competence centre for

microelectronics

• Engineering support for

industrial wastewater projects

in Asia

23

WORLD CLASS PUBLIC RESEARCH CAPABILITIESSINGAPORE UNIVERSITIES RANKED TOP 2 IN WATER RESEARCH GLOBALLY

Top 2NTU and NUS

24

NEWRI’S CAPABILITIESVARIOUS CENTRES OF EXCELLENCE TO SOLVE MULTITUDE OF INTEREST AREAS

Environmental Process

Monitoring Centre

• Hydrologic and hydro-

environmental modelling and

simulation

• Process modelling and

simulation for industrial water,

wastewater and waste

• Molecular dynamic simulation

Advanced Environmental

Biotech CentreEnvironmental microbiology and

bioprocesses applied to

environment and water

Nanyang Environmental & Water Research Institute (NEWRI)

Residues, Resource and

Reclamation CentreWaste to materials, waste to

energy and remediation of

contaminated sites, with

strong focus on

biotechnology

Environmental Chemistry

and Materials Group Advanced materials, water

chemistry, air quality detection

and sensing

Singapore Membrane

Technology Centre• Novel membranes

• Forward osmosis and membrane

distillation

• Ceramic membranes

Industry Collaborations:

Total: ~200 researchers

25

SEPARATION TECHNOLOGIES APPLIED RESEARCH TRANSLATION (START)

Singapore Membrane

Technology Centre (SMTC)

Membrane Science & Tech

Consortium (MSTC)

Multidisciplinary group of 25 fellows,

100 researchers, consolidation of NUS

IPs & knowledge

Separation Technologies Applied Research & Translation (START)

National infrastructure to translate intellectual property (IP) from local universities by

working closely with industry to develop and commercialise low energy, high-efficiency

separation technologies for various applications

1

2

9

8

7

6

5

4

3

Part of NEWRI ecosystem led by

eminent imminent global membrane

thought leader Prof Wang Rong

Living Lab Fund (Water)

TRL

Activities include:

Prototype development

Module production & testing

Systems modelling & optimisation

Pilot manufacturing

Manpower:

Engineering Team

Business Development Team

Equipment:

Fabrication & assembly systems

Lab-based & on-site pilot systems

Industry take-up, piloting and commercialisation

Industrial Living Lab

START is leading the

Singapore National

Membrane Consortium

Domains include:

- Water and Environment

- Energy

- Food & Beverage

- Pharmaceutical &

Biomedical Applications

26

TECHNOLOGICAL BETS TO ADDDRESS NATIONAL NEEDS

Biomimetic MembranesBlue EnergyElectrochemical Desalination

Evoqua-PUB demo plant (ongoing)

Short to medium term Medium Term Medium to Long Term

Defi

nitio

nPilot

Tim

eline

Outc

om

e

On-going pilot and demo plant in 2019

Technology developed and commercialised through Singapore,

supply chain management and manufacturing anchored in SG

NTU-Hyflux partnership for commercialisation

Biological membrane (naturally occurring proteins called

aquaporins) with high flux

Salinity gradient energy from difference in salt concentration

btw seawater & river water

Removal of salt from water by transporting ions through

membranes under electric current

Targ

et

coys

To be revealed

27

Treatment of industrial

wastewater through

Upflow Anaerobic

Sludge Blanket (UASB)

and ceramic Membrane

Bioreactor (MBR) system

Real time monitoring of

water quality and

distribution

Advanced Meter

Reading and

Stormwater

Management

LIVING LAB - WATERPUB HAS CONDUCTED MORE THAN 150 PILOTS AT ITS FACILITIES

Opening of facilities on

Jurong Island and

mainland to test water,

environment and energy

technologies

28

SINGAPORE – A REGIONAL HUB FOR SMART WATER SOLUTIONS

A strong base of IT and OT technology providers developing pioneering digital solutions out of Singapore

81-man Global IoT

Digital Services CoE

40-man CoE10-man Global IoT Lab for

Smart Filtration

300-man Digitalisation Hub

30-man Global Smart Water

Data Command Centre & core

development team for the

ViewTM Platform

29

Cost reduction for

industrial end users

Lead demand

generated for IWS

providers

Govt savings from

reduced infra

spending

Water

Recycling

Seawater

Cooling

Process Water

Optimization

Smart Water

Benchmarking

• New end-user funding scheme

• Matchmaking solution providers

and adopters

INDUSTRIAL WATER IMPLEMENTATION DRIVE

Focus Areas Final Outcomes

Thank you

For further enquires, please contact EDB Regional Director EU

Ms Yidan SUN via Sun_Yidan@edb.gov.sg