The COVID-19 pandemic is more than just a healthcare crisis, it has affected many other sectors such as aviation, tourism, hospitality, and retail. The pandemic has also accelerated technology disruption in every way possible, causing some businesses to pivot to remain relevant in this new normal. Despite the challenges faced in the last two years, the situation has spurred growth and resulted in an encouraging start-up ecosystem in Singapore.
Singapore is already an attractive place for start-ups and existing multinational companies to expand into. To find out more about the benefits for companies establishing their business presence here, read our previous blog post here. To further facilitate this, Singapore has unprecedently announced 4 budgets in 2020. Named Unity, Resilience, Solidarity and Fortitude Budgets, dedicating close to S$100 billion, which is almost 20% of the country GDP to provide relief for its economy and people from the uncertainties in the current climate. Because of such government aid, it has allowed businesses to adapt and leverage on available growth opportunities. The pandemic has shown that there are gaps in some sectors that have yet to be fully explored. We have identified two key sectors for growth in this current economic climate for you to consider.
TELEMEDICINE
With an ageing population, increased incidence of chronic diseases, and with most patience avoiding potential exposure to COVID-19 in public settings, telemedicine can improve access to care for patients, by helping to bridge the constraints of distance, time, and cost. The telemedicine sector has witnessed substantial growth as seen through a large spike in demand for their services. Telemedicine service providers have also been asked by the Ministry of Health to assist and reinforce the management of COVID-19 patients undergoing home recovery. Doctor Anywhere, a digital health platform with a network of close to 2,800 doctors and medical professionals serving 1.5 million users across Southeast Asia, has managed to raise S$140 million in capital over the past 5 years since its inception. The combination of traditional and modern medicinal approaches has shown increasing promise from the start of the pandemic and industry watchers are saying that the pandemic has radically change the telemedicine sector, and its role of in the healthcare systems around the world. The key is to sustain the momentum built during this time, to flourish in this sector.
With an ageing population, increased incidence of chronic diseases, and with most patience avoiding potential exposure to COVID-19 in public settings, telemedicine can improve access to care for patients, by helping to bridge the constraints of distance, time, and cost. The telemedicine sector has witnessed substantial growth as seen through a large spike in demand for their services. Telemedicine service providers have also been asked by the Ministry of Health to assist and reinforce the management of COVID-19 patients undergoing home recovery. Doctor Anywhere, a digital health platform with a network of close to 2,800 doctors and medical professionals serving 1.5 million users across Southeast Asia, has managed to raise S$140 million in capital over the past 5 years since its inception. The combination of traditional and modern medicinal approaches has shown increasing promise from the start of the pandemic and industry watchers are saying that the pandemic has radically change the telemedicine sector, and its role of in the healthcare systems around the world. The key is to sustain the momentum built during this time, to flourish in this sector.
FOOD TECHNOLOGY
Singapore’s start-up ecosystem has incubated and fostered the growth of food related enterprises. As more people stayed home to reduce exposure to COVID-19, the usage of food technology apps such as food delivery have seen significant increase in use. Food delivery grew 183% from 2019-2020 with Singapore generating US$2.4 billion in gross merchandise value (GMV). Oddle, an online food ordering platform has raised S$5million in funds in the past three years in indicative of how food start-ups have managed to strive despite the pandemic. Given the increasing digitalization and changes in consumer behaviour, it is expected that the large part of this growth to be perpetual. For any food delivery company to thrive in the current market condition, it needs to address challenges such as low food prices, infrastructure and city variations and cost management.
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In addition to the budgets announced, the Economic Development Board’s (EDB) Enterprise Development Grant (EDG) aims to assist companies to upgrade their businesses, innovate or venture overseas under three pillars: core capabilities, innovation and productivity and market access. The grant funds up to 80% of a company’s digitalisation efforts and mainly funds qualifying project costs such as third-party consultancy fees, software, equipment, and internal manpower costs. As earlier mentioned, the pandemic has accelerated technology disruption and digital adoption as seen through the increase usage of online communication and productivity platforms such as Zoom and Slack. The grant provides companies with the opportunity to improve and enhance their digital capabilities to boost productivity and be able to meet growing industry standards. There are also other support measures such as the Start-up SG Founder Programme.
You can also refer to our other related posts such as:
- Boosting your chances of Start-up Success and
- Staying Ahead and Thriving in an Uncertain Economy
Along with all the government support, early-stage fund raising also contributes to the growth of start-ups. SEEDS Capital, the investment arm of Enterprise Singapore, has appointed 13 new co-investment partners and is expected to capitalise over S$150 million worth of private money to continue to promote and strengthen the growth of the start-up environment in Singapore.
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In view of the above-mentioned, Singapore’s start-up ecosystem manages to ride the wave of adversity and emerged resilient and robust. This is attributed to the government’s strong foresight and ability to adapt to the everchanging climate, to further promote and foster economic growth despite the challenges and impact of COVID-19.
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HOW IGS CONSULTING CAN HELP YOU?
Whether you need assistance with registering your company and ensuring compliance with regulatory requirements, IGS Consulting is here to help. Our team have the necessary experience required to handle business registration, accounting, and taxation requirements, and more. If expanding business in Singapore sounds good, don’t hesitate to contact us today!
Singapore’s start-up ecosystem has incubated and fostered the growth of food related enterprises. As more people stayed home to reduce exposure to COVID-19, the usage of food technology apps such as food delivery have seen significant increase in use. Food delivery grew 183% from 2019-2020 with Singapore generating US$2.4 billion in gross merchandise value (GMV). Oddle, an online food ordering platform has raised S$5million in funds in the past three years in indicative of how food start-ups have managed to strive despite the pandemic. Given the increasing digitalization and changes in consumer behaviour, it is expected that the large part of this growth to be perpetual. For any food delivery company to thrive in the current market condition, it needs to address challenges such as low food prices, infrastructure and city variations and cost management.
- - -
In addition to the budgets announced, the Economic Development Board’s (EDB) Enterprise Development Grant (EDG) aims to assist companies to upgrade their businesses, innovate or venture overseas under three pillars: core capabilities, innovation and productivity and market access. The grant funds up to 80% of a company’s digitalisation efforts and mainly funds qualifying project costs such as third-party consultancy fees, software, equipment, and internal manpower costs. As earlier mentioned, the pandemic has accelerated technology disruption and digital adoption as seen through the increase usage of online communication and productivity platforms such as Zoom and Slack. The grant provides companies with the opportunity to improve and enhance their digital capabilities to boost productivity and be able to meet growing industry standards. There are also other support measures such as the Start-up SG Founder Programme.
You can also refer to our other related posts such as:
- Boosting your chances of Start-up Success and
- Staying Ahead and Thriving in an Uncertain Economy
Along with all the government support, early-stage fund raising also contributes to the growth of start-ups. SEEDS Capital, the investment arm of Enterprise Singapore, has appointed 13 new co-investment partners and is expected to capitalise over S$150 million worth of private money to continue to promote and strengthen the growth of the start-up environment in Singapore.
~~~
In view of the above-mentioned, Singapore’s start-up ecosystem manages to ride the wave of adversity and emerged resilient and robust. This is attributed to the government’s strong foresight and ability to adapt to the everchanging climate, to further promote and foster economic growth despite the challenges and impact of COVID-19.
~~~
HOW IGS CONSULTING CAN HELP YOU?
Whether you need assistance with registering your company and ensuring compliance with regulatory requirements, IGS Consulting is here to help. Our team have the necessary experience required to handle business registration, accounting, and taxation requirements, and more. If expanding business in Singapore sounds good, don’t hesitate to contact us today!