Singapore government reveals latest measures to turn country into an innovator’s haven

3D printers are available for use at IDA Labs, a government-led makerspace in the heart of Singapore.

Criticize the Singapore government all you want for its tightened labor policies, which has made it harder for startups to hire good foreign talent. But it’s undeniable that they’re trying very hard to recreate Silicon Valley in Singapore — an earnest attempt to keep the small country prosperous.

2014 is shaping up to be a landmark year for the startup community in Singapore. Just three months in, a multi-agency effort is already underway to introduce a raft of programs to turn Singapore into a nation of innovators, makers, and tinkerers.

The Infocomm Development Authority of Singapore (IDA) has a big part to play. Last week, the government agency announced a three-pronged strategy to support technology startups, consisting of a startup accelerator, an accreditation program to encourage government entities and large enterprises to adopt emerging technology, and a fabrication lab to give youths an opportunity to tinker with electronics and software.

That’s not all. IDA earlier hinted it will introduce programming into schools. The government announced it will expand the Block 71 program, a thriving physical space for the startup community, and the National Research Foundation will soon decide on its shortlist of five venture capital firms that will join its rebooted ESVF program, a co-funding scheme designed to address Singapore’s Series A funding gap. Specifics for these programs will be revealed soon.

The government has been listening to the startup community. ACE, an organization consisting of government officials and entrepreneurs, began a series of consultations to figure out how the state can help the country’s young companies.

The recommendations were then compiled and presented. Some of the ideas, including an equity crowdfunding legal framework and the extension of subsidies for spending on innovation, have already been approved.

For the last time, startups are not SMEs

While the government sometimes conflates ‘startups’ with all new companies and small and medium enterprises (SMEs), the reality is that both require drastically different types of support.

Alex Lin, head of Infocomm Investments, IDA’s venture capital arm, says the agency is specifically targeting high-growth innovation-driven enterprises (IDEs) that need an initial boost in funding and guidance. It has zoomed in on the issues faced by these companies at the earliest stages where they have not yet taken off and are most at risk of failing.

While SMEs typically have revenue early on and are destined for slow and steady growth, IDEs follow a different trajectory. They need a lot of venture capital early in their lifecycle as they’re more focused on getting market share than making money. Eventually, they’ll reach ‘escape velocity’ where they become global and scalable enterprises that are then able to capitalize on massive traction to generate cash flow.

“These are companies are globally focused and will create a lot more jobs. We are very interested in these kinds of companies,” says Lin.

A focal point of IDA’s push is the National Design Centre, a congregation point for designers and businesses located in Singapore’s Bugis district.

The building’s modernist and colonial architecture tell a story: the venerable building first saw life as a convent school when Singapore was under British rule before becoming home to the Nanyang Academy of Fine Arts.

Now, the center will host a tinker lab sponsored by IDA, which will eventually be filled with 3D printers, open source hardware like Arduino and Raspberry Pi, and sensors. This is just one of two ‘IDA Labs’ in Singapore; the other is located at the agency’s headquarters.

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