Temasek to invest S$1 billion per year in deep tech

Fiona Lam

Published Fri, Oct 15, 2021 · 04:50 PM

SINGAPORE investment firm Temasek will pump S$1 billion a year into deep-tech investments across a range of domains.

These include advanced manufacturing, disruptive materials, net-zero tech, life sciences and food tech, said Deputy Prime Minister Heng Swee Keat on Friday (Oct 15).

Speaking at the RIE Industry Day 2021 event at Marina Bay, DPM Heng noted that through these deep-tech investments, Singapore will be able to strengthen its position in the global technology supply chain.

"I hope that Temasek will develop new global champions from these investments, in time to come," he added.

In response to The Business Times' queries, Temasek said the S$1 billion amount is an annual allocation and part of the company's allocation for innovation.

At the same event on Oct 15, Temasek International deputy chief executive Chia Song Hwee noted that the company has made direct investments into deep-tech firms working on disruptive innovations in areas such as energy, transport, food, water, waste, materials and urban development.

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In materials, Temasek has invested in startups that aim to solve massive emissions created by cement and steel - materials essential to urbanisation.

"Collectively, working on science and technologies, we can make a difference in changing the trajectory of carbon emissions,” Chia said in his welcome address.

DPM Heng, who is also chairman of the National Research Foundation, urged investors to be prepared to power the changes that require long gestation and patient capital.

Deep-tech startups, in particular, tend to take much longer than several years to exit, compared to other successful startups. "From research discovery, to crossing the valley of death, to productisation - this can take many years," he said.

For instance, Nanofilm Technologies - the spin-off company of Nanyang Technology University - debuted on the Singapore Exchange last October. The listing came more than two decades after the company was founded in 1999 based on its founder Shi Xu's research work while he was an associate professor at the university.

DPM Heng said: "Seeing through such an endeavour requires both great resilience from the researchers and patience from the investors."

He also welcomed investors focused on innovation to find opportunities in Singapore, as well as through Singapore in the region.

Meanwhile, the Singapore government has committed S$25 billion to research, innovation and enterprise over the next five years, as part of its RIE 2025 plan first announced in December 2020.

In his speech on Friday (Oct 15), DPM Heng noted that RIE 2025 focuses on human health and potential; urban solutions and sustainability; manufacturing, trade and connectivity; and smart nation and the digital economy.

Innovation efforts should be channelled towards the areas where there can be the greatest impact, he highlighted.

In addition, he encouraged more companies to launch innovative projects that can grow their businesses and improve lives. Innovation must permeate all companies, including the medium and large players.

"There is a view that larger companies - with a large asset base, steady revenue, and established systems - are less innovative. Indeed the pressure to change may be less acute in the short term. But failure to innovate can be very costly in the long term," DPM Heng said.

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For more of our SWITCH 2021 coverage, go to bt.sg/switch21