Singapore is becoming a prominent startup hub by attracting startups from various countries and regions and supporting their growth, rather than just providing funding. The governments of Japan and Singapore have joined forces to encourage Japanese startups to expand internationally.
One such company that has benefited from Singapore’s startup ecosystem is Red Dot Drone PTE, Ltd. Founded in 2017, the company develops software for controlling automated drone flights and is based at Block71, a startup support center at the National University of Singapore. With around 10 employees, including Thai, Singaporean, and Japanese staff members, Red Dot Drone PTE has found Block71 to be an ideal environment for collaboration.
Block71 brings together managers from approximately 30 companies specializing in software development for customer management systems. These managers come from diverse backgrounds, including Australia, China, and Malaysia. Akira Hirakawa, co-founder of Red Dot Drone PTE, appreciates the stimulating atmosphere at Block71 where he can exchange information with others about clients and investors.
Singapore has witnessed significant growth in its startup scene. One notable success story is Grab – a company that developed an app offering both ride-hailing and food delivery services. Entrepreneurs from all over the world are flocking to Singapore to take advantage of its supportive ecosystem. In fact, according to the Singaporean government’s data for 2022, startups raised $11 billion (approximately ¥1.74 trillion) in the country - surpassing Japan’s estimated ¥800 billion.
The success of these startups can be attributed partly to the proactive measures taken by the Singaporean government to promote entrepreneurship. They provide subsidies of up to 50,000 Singapore dollars (around ¥5.9 million) for entrepreneurs as well as affordable office spaces for rent. Additionally, they have introduced visas specifically designed for foreign entrepreneurs and offer tax incentives for investments in newly established startups.
In April this year, both Japan and Singapore agreed on establishing a platform that would facilitate collaboration between their respective startup ecosystems with the aim of accelerating Japanese startups’ expansion overseas. Leveraging on Singapore’s expertise in this field will enable entrepreneurs to connect with investors more easily through investment firms affiliated with the government of Singapore itself.
The ultimate goal is nurturing unicorn startups – companies valued at least $1 billion (about ¥160 billion).
Tan See Leng – Minister for Manpower & Second Minister for Trade & Industry in Singapore – expressed optimism about attracting Japanese startups: “Singapore and Japan are natural partners when it comes to collaborating on deep tech innovation.”