Why Singapore is a magnet for New Zealand innovation

What comes to mind when you think of New Zealand? Perhaps you envision its famous national rugby team, the All Blacks, or the beautiful landscapes where the Lord of the Rings movies were filmed.

However, there’s more to the country than rugby and scenery. New Zealand is also home to a thriving startup ecosystem undergoing a surge of activity due to a potent mix of factors.

“A culture that embraces ingenuity, a supportive regulatory environment, and a tight-knit community of entrepreneurs have propelled us to the forefront of the global innovation landscape,” says Maggie Christie, the trade commissioner to Singapore of New Zealand Trade and Enterprise. NZTE is the country’s government trade agency that supports local businesses embarking on international expansion.

Maggie Christie, the trade commissioner to Singapore of NZTE / Photo credit: NZTE

New Zealand’s ecosystem is worth US$9.35 billion, according to Startup Genome. It attracted US$545 million in early-stage funding between the second half of 2021 and 2023 while exits from 2019 to 2023 reached US$2.88 billion in value.

While these numbers indicate success, there’s still room for growth.

“New Zealand is a small country,” says Christie. “We must trade internationally to grow.”

A gateway to growth

With its thriving tech ecosystem and strategic location as a gateway to Asia, Singapore has become a prime destination for New Zealand companies looking to venture beyond their home market.

“Singapore is well-known for its position as a tech hub,” explains Christie. “Its strong infrastructure and business-friendly environment are similar qualities that New Zealand values.”

The two countries also have similar values, working to balance tech growth and development with sustainability on their respective growth journeys, according to Christie.

But beyond sharing qualities and values, New Zealand companies bring a unique edge to Singapore’s tech scene via their resourcefulness and drive for global connectivity.

Wellington, New Zealand / Photo credit: Milosz Maslanka / Shutterstock

“Innovation is in our DNA and borne out of necessity due to our location from the rest of the world,” says Christie. As a relatively isolated nation in the Pacific Ocean, New Zealand has had to rely on itself to survive and address challenges, creating an impetus for cutting-edge solutions to emerge.

This drive to push boundaries is evident in the country’s history of scientific and technological breakthroughs, from splitting the atom to launching the world’s first electron rocket.

With the ample opportunities available in Singapore, many New Zealand businesses have now set their eyes on the city-state as an access point to the global market.

Navigating the challenges of expansion

One such firm is Cogo, which helps consumers and businesses track and reduce their carbon footprint. The Wellington-based company recognized a significant opportunity in Singapore’s burgeoning green finance sector.

“Our technology has the opportunity to impact Asia’s entire carbon footprint,” explains Josh Dry, Cogo’s director of business development. He points to the growing consumer demand for sustainable solutions in Singapore, citing a DBS survey where 85% of respondentsexpressed interest in accessing carbon footprint information through their banking apps.

Cogo director of business development Josh Dry / Photo credit: Cogo

But breaking into a new market, even one as welcoming as Singapore, presents challenges.

“It’s always difficult to convince large customers to ‘go first’ on using a product,” admits Dry. “We’ve spent considerable effort on inviting banks in Singapore to champion change and seize the first-mover advantage to pave the way for a brighter, more sustainable future that unlocks a revolution in banking.”

He emphasizes the importance of forging strategic alliances since gaining a foothold in a new market requires building trust and cultivating a robust network.

“We found partnerships were instrumental and announced partnerships with Asian fintech innovators such as Moneythor, Planto, and Personetics, which helped us jointly champion fintech innovation in the climate space,” says Dry.

Beyond securing partnerships, adapting to cultural differences and fostering strong relationships demand dedicated effort and a long-term perspective.

“We invest in attending the Singapore Fintech Festival and regularly have an on-the-ground presence,” he shares. “This is pricey in both the monetary and carbon sense but a great way to establish in-person rapport with potential customers and champions of our technology.”

A two-pronged approach

Cogo’s success was bolstered by New Zealand’s commitment to support its emerging companies on the global stage.

NZTE, for one, plays a crucial role by providing these businesses with the knowledge, connections, and resources needed to thrive in new markets.

“We apply a two-pronged approach to help New Zealand companies grow and succeed,” adds NZTE’s Christie.

The first prong is “know-how,” which involves equipping New Zealand companies with the necessary market insights to thrive. The second prong is “know-who,” which focuses on creating a support network for companies entering a new market. This means NZTE facilitates introductions to key stakeholders like Enterprise Singapore and the Singapore Economic Development Board (EDB).

Cogo and the NZTE team / Photo credit: NZTE and Cogo

NZTE’s support has been invaluable to Cogo on its journey so far.

“In 2022, NZTE was instrumental in supporting Cogo to participate in then-Prime Minister Jacinda Ardern’s business delegation to Singapore and Japan,” shares Dry. “This was crucial in laying a strong foundation in terms of our understanding of and presence in the region.”

As a result, Cogo has seen success in Singapore and other parts of Asia. The company has worked with the Oversea-Chinese Banking Corporation and HSBC on internal carbon reporting as well as the Bank of China to deploy a customer-facing carbon insights solution in Hong Kong.

Bridging the gap between two ecosystems

Looking ahead, Cogo intends to leverage this foundation to further its reach.

“We have an active business development program and continue to pursue other customer engagements in the Singapore region, alongside our expanding global operations,” Dry says.

On NZTE’s end, it sees tremendous potential in Singapore as a launchpad for businesses beyond the fintech sphere. “Ongoing opportunities for New Zealand and Singapore to collaborate continue to evolve, especially as AI and sustainability become even more prevalent,” says Christie.

In her view, New Zealand’s expertise in creating premium and safe food could help unlock new innovations in the foodtech front, contributing to Singapore’s “30 by 30” food sustainability goals. There’s also opportunity for collaborations in many other areas including education and even healthcare and medical technologies.

“New Zealanders are some of the best inventors,” Christie concludes. “We’re really excited to be able to bring that innovation to Singapore and to the world.”

New Zealand Trade and Enterprise is the government agency tasked with helping local businesses grow internationally.

Learn more about New Zealand companies and the innovation they’re pursuing on NZTE’s LinkedIn page.

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This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.