Why Singapore is a hotbed for HR tech startups

From the traditional record management system to the AI screening chatbot, human resources tech has progressed by leaps and bounds, growing to become a US$400 billion industry worldwide.

Even the Singapore government is involved in the space. In May, the country’s Minister of State for Manpower, Zaqy Mohamed, announced the formation of the HR Industry Transformation Advisory Panel (HRTAP).

Composed of HR and business leaders, representatives from the industry, and tripartite partners, the entity will build on the governments HR plan, formulate strategies, and lead efforts to further develop the sector in Singapore.

Singapore’s HR tech ecosystem

With close to 200 HR tech vendors in the country, it says a lot about the market demand for such firms.

Players like DBS Bank have deployed Jim, a virtual recruiter that helps the company hire wealth planning managers more efficiently.

There are also several local and emerging startups in play, such as HReasily, Swingvy, and StaffAny.

But having said that, Singapore is still a small country vis-a-vis its neighbors. According to its statistics department, 99% of companies in the country are small and medium-sized enterprises.

Given that most HR tech firms operate on a software-as-a-service model, the number of employees that their clients have matters. This means that vendors must acquire more customers in order to achieve economy of scale.

The perspective from HR tech firms

Regardless of the constraints, the high number of HR tech startups in Singapore is real, and from my discussions with a few vendors, I can understand why.

Ease of doing business

Registering for a business is relatively easy in Singapore – founders can typically do this in a matter of hours.

Sei Wee, CEO of tech recruitment platform IoTalents, sees this speediness as a key advantage. “This allows HR tech vendors to focus more on their product and business development and less on administration,” he shares.

On top of that, government support has come fast for HR tech startups. Qian Li, a sales consultant for business solutions firm Straits Interactive, agrees with this sentiment.

“The level of support [from] the Singapore government, primarily captured in the Smart Nation initiative and delivered via various government agencies in the form of grants, made adoption of HR tech much more palatable and lighter on the pocket,” he says.

But it’s not just the government that supports such vendors. Singapore-based associations and communities have sprouted up to educate the market about HR tech as well. The Human Capital Leadership Institute, the Singapore Human Resources Institute, and the Institute for Human Resources Professionals are just some examples of this.