Singapore looks for deeper digital ties with San Francisco investment
Enterprise Singapore (EnterpriseSG) has set up an office in San Francisco, where it hopes to further deepen bilateral ties and support startups' efforts to enter the digital hub.
The new office is the government agency's third in the US and underscores San Francisco as "a city of interest" for Singapore businesses, especially in the tech and innovation space, EnterpriseSG said. The agency is responsible for promoting local businesses and startups in the global marketplace. The organization also has offices in New York and Los Angeles, which are part of its global network of 37 outfits in 23 countries.
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Describing San Francisco as one of the world's top startup hubs, EnterpriseSG said its new office will work to support Singapore companies' entry into the US market and strengthen bilateral trade and investment flows.
The number of companies exploring or entering the US market grew 23% during the past five years. There are currently close to 200 Singapore businesses with a business presence in the US, operating in various sectors including fintech, healthcare, manufacturing, and retail.
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Singapore's third-largest goods trading partner, the US was among the first batch of countries to establish a free trade agreement with the Asian nation, which came into force in 2004. Bilateral goods trade between the two markets has grown by almost 8% annually from SG$97.9 billion in 2018 to hit SG$132.7 billion ($98.35 billion) last year.
Bilateral services trade between the two nations has expanded by 18% per year from SG$64 billion in 2017 to reach SG$125.2 billion ($92.79 billion) in 2021. Singapore's direct investments in the US reached SG$44 billion ($32.61 billion) in 2021.
Noting Singapore's small market size, EnterpriseSG CEO Lee Chuan Teck said growth for many local companies meant venturing overseas in search of new markets, investment in production facilities, and sources for supplies.
In its decision to establish a new site in San Francisco, Lee said the Bay Area offers a rich innovation ecosystem. Several local companies are also already operating in the US city and tapping its technology, talent, and capital, he said. These companies include advanced manufacturing companies Akribis and Venture Corporation, biomedical firms Engine Biosciences and Lucence, and telco Singtel.
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Lucence specializes in precision oncology and opened its diagnostics laboratory in Palo Alto in 2020. Earlier this year, Lucence became the first Asian-based healthcare company to secure US Medicare coverage. Now, the company's liquid biopsy tests can be reimbursed under the US public medical insurance scheme.
The Singapore biomedical firm first leveraged its R&D and clinical expertise to commercialize its cancer diagnostic testing services in Singapore and Hong Kong, before bringing the same technology to US patients.
"We want to build bridges so that Singapore companies can land and grow here," said Lee, who pointed to an existing partnership with Cedars-Sinai Medical Centre, which provides testbedding opportunities for Singapore's biomedical firms that are looking to enter the US healthcare market.
EnterpriseSG also launched a Global Innovation Alliance acceleration program in partnership with Plug and Play last month, which is working with 11 Singapore startups in a six-week initiative. The program will prepare the startups to pitch to potential investors in San Francisco, Lee said.
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The acceleration program was first introduced in San Francisco in 2019 and also runs in other global markets, including Bangalore, London, and Berlin.
Lee added that Singapore businesses have expressed interest in exploring several verticals in San Francisco, including clean energy and transportation.
The office opening was officiated by several Singapore officials, including Prime Minister Lee Hsien Loong who was in town for this week's APEC Ministerial Meeting.