Partners in innovation
Singapore’s growth sectors and innovation ecosystem make it an attractive market for German businesses
LONG recognised as a global gateway for foreign businesses looking to expand in the region, Singapore has also established itself as a hub for innovation.
As global challenges push the need for transformation, German businesses are leveraging Singapore’s combination of stability, infrastructure, openness and collaborative environment to grow.
Singapore’s strategic location in South-east Asia has served as a launchpad for German technology conglomerate Siemens, since it first set up a technical bureau here in 1908.
Over the years, Singapore’s growing ecosystem of tech companies, talents and free trade agreements have continued to make it an attractive base for Siemens.
Similarly, for Continental Automotive Singapore, its gateway to Asia is Singapore. The German multinational traces its roots in Singapore back to the 1980s, when it operated as a different entity.
Singapore’s highly skilled workforce is another draw for the company. It employs around 1,400 in various fields from engineering to software development, artificial intelligence (AI), robotics, and cybersecurity.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Meanwhile, German logistics giant DHL Singapore has expanded its presence here significantly since it was established in 1972.
From sorting documents in a Shell petrol kiosk car park in its early days to establishing three service centres across Singapore, and a South Asia Hub set up in 2016 and its subsequent expansion, it has enhanced Singapore’s connectivity to the world as well.
“As a location, Singapore is extremely well-connected, cosmopolitan, and is known for its strong governance. All of that has helped to grow our hub capacity in Singapore and Asia tremendously,” said Christopher Ong, managing director of DHL Express Singapore.
Shared growth sectors
Both Singapore and Germany share priorities in several key sectors – such as advanced manufacturing, emerging technologies, and sustainability – which contributes to the Republic’s attractiveness as a base for further growth.
Siemens’ 200-million-euro (S$288 million) investment to build a high-tech factory in Singapore further underscores the company’s growth strategy in the region. Its construction is planned to be completed in 2027.
Dr Thai-Lai Pham, chief executive officer, Siemens Asean, said: “South-east Asia has great opportunities as a market as well as from a manufacturing perspective. The new high-tech factory in Singapore will enable us to serve our South-east Asian customers better and faster.”
That many big tech players have set up operations or expanded their businesses in the region also means there is growing demand for various kinds of technologies and infrastructure in South-east Asia, and Siemens wants to ensure that it has the capacity to serve this growing market.
Both countries’ commitment to develop and improve advanced manufacturing technologies, coupled with their strong startup ecosystem, also led Siemens to set up the Advance Manufacturing Transformation Centre in Singapore in 2021.
It provides training and support for manufacturing facilities in South-east Asia as they transition towards advanced manufacturing.
DHL Singapore is also enhancing its processes by adopting AI to automate its supply chain and using automated guided vehicles at its South Asia Hub to help with any manpower needs, as well as ensure worker safety.
At the DHL Innovation Center, the company’s first in Asia-Pacific when it was launched in 2015, various experts work to develop solutions such as autonomous robots with camera sensors to deliver packages and passive exo-suits to ensure the safety of employees in the warehouse.
“What we are trying to do is get small practical innovations to provide the right solution for our customers. Things like biodegradable smart labels, smart locks that track movement and deter tampering – these matter to our customers,” said Mr Ong.
Green priorities
Sustainability is another area of priority for Germany and Singapore.
Through its collaboration with local vertical farm startup Artisan Green, Siemens has been able to transfer its experience and expertise in urban farming from Germany to Singapore.
Siemens’ automation solutions are helping Artisan Green to accelerate sustainable food production, by optimising crop quality and yield, while conserving water and reducing energy consumption.
In an era where green energy and eco-friendly solutions are gaining global momentum, companies such as Continental are working on projects that are aligned with its commitment to sustainability.
One such project is developing solutions for Software Defined Vehicles (SDVs), through which the functions of a vehicle will be increasingly enabled, controlled and maintained by software.
Lo Kien Foh, president and CEO, Continental Automotive Singapore, said: “As an R&D (research and development) hub, Singapore leads and coordinates regional projects and activities regarding the SDV, with the aim to create new business models around it and ensuring that our solutions are tailored to meet the specific needs of diverse markets.”
Its engineers in Singapore also work closely with colleagues in Germany in the development of the cloud-based framework and systems, called the Continental Automotive Edge Framework (CAEdge), which are used to create and test software for the SDV.
DHL Singapore plans to achieve net-zero emissions by 2050 through its operations, such as having 60 per cent of electric vehicles in its fleet for last mile delivery by 2030, and using sustainable aviation fuel for the aeroplanes under its GoGreen Plus service to reduce carbon emissions.
Tapping the innovation ecosystem
Singapore’s vibrant and supportive research ecosystem is also a boon for German companies as they can leverage the expertise of universities.
Continental, for instance, runs the Continental-NTU Corporate Lab with Nanyang Technological University (NTU), where its engineers work with NTU researchers to create smart and sustainable mobility solutions.
The research covers areas such as autonomous robotics, navigation, AI, cybersecurity, smart materials, sensing, communication, and cloud technologies, with the aim to develop real-world applications.
One of the projects at the lab is the intelligent management of Electric Vehicle (EV) fleets to optimise charging schedules and locations, so that EVs become more available and reduce the demand placed on the electricity grid during peak hours.
For another project, researchers built an AI model that predicts potential accidents and alerts fleet operators to abnormal driving patterns that may indicate a higher risk of accidents.
This system was piloted on 10 Go-Ahead buses since last year and driving data was collected to make further improvements to the AI model.
Research from the lab has also resulted in many patents in areas such as AI, robotics, cybersecurity, and smart materials – and this is where Singapore’s robust intellectual property infrastructure is yet another factor that works in Continental’s favour, said Lo.
Copyright SPH Media. All rights reserved.
