Computer Hardware and Software
Singapore
Overview
2004 2005 2006 (estimated)
Total Market Size 2621 3126 3500
Total Local Production 15300 19573 8300
Total Exports 17950 16813 12500
Total Imports 5271 5886 7700
Imports from the U.S. 418 392 553
Footnote: Exchange rates used:
2004: US$1 = S$1.63
2005: US$1 = S$1.66
2006: US$1 = S$1.56
The statistics are unofficial estimates
Figures are in millions of US$
In 2006, the Singapore government released Intelligent Nation 2015 (iN2015), its blueprint for achieving the vision of an “intelligent nation, global city, powered by infocomm.” This blueprint outlines both goals and opportunities for the infocomm industry in Singapore over 10 years. As the government pushes for a totally connected society and seeks an edge through the promotion of the infocomm industry, demand for computers products and services is expected to grow.
74% of Singapore households own personal computers, with 28% owning two or more. 66% of these households enjoy Internet access. About two-thirds of the Singapore resident population aged 15 years and above are computer users and 61% use the Internet. Every school and public library is equipped with PCs and has broadband access. More than 1,600 Singapore government services are available on-line. Almost six in ten Internet users in Singapore had online interaction with the Singapore government, with 46% of them completing or lodging forms online and more than 28% using the Internet to make online payments to the government agencies. Since December 2002, all key government services deemed feasible for e-delivery have been available on-line. Accenture’s Annual e-Government Ranking: e-Government Overall Maturity Scores, 2005 ranked Singapore third in the world while the Brown University Study of Global E-Government 2005 ranked Singapore second in the world.
According to the Annual Survey on the Infocomm Industry for 2005 conducted by the Infocomm Development Authority of Singapore (IDA), hardware and software revenue in Singapore’s domestic market amounted to US$3.1 billion in 2005. Details of the survey can be found at http://www.ida.gov.sg/Publications/20061205102839.aspx.
Best Prospects/Services
The Singapore market is dependent on imports and multi-national corporations located on the island to provide for its IT requirements. U.S. products are traditionally well received in Singapore as the United States is seen as the source for state-of-the-art technologies. For the first 10 months of 2006, U.S. computer hardware and software exports to Singapore grew 17% to US$416 million. Best prospects in 2007 include application software, security solutions, and government projects. Singapore also acts as a major distribution center for companies interested in selling to the region as reflected by re-export data. Nearly 40% of computer hardware and software imported into Singapore are meant for third-country consumption.
Opportunities
The Singapore government’s desire to develop the island city-state into a trusted infocomm hub and regional financial center has brought heightened awareness to the issue of security. This awareness together with the growing reliance on IT in business, government, office, schools and homes and compliance requirements will drive the demand for security solutions in Singapore.
The Singapore government is also a major end user of IT products and services. It believes it is essential to continue to exploit the potential of Infocomm technologies for operational efficiencies in running the country. In 2005, the government announced its plans for a US$960 million Standard ICT Operating Environment (SOE). SOE will standardize the messaging, network and desktop environment for the public sector. The government has shortlisted four consortia for the next stage of the SOE tender: One Meridian led by EDS international; Team HP led by Hewlett-Packard Singapore (Sales); One Team led by NCS and IBM Singapore; and a consortium led by NEC Solutions Asia Pacific. The government awarded US$64 million worth of contracts for infocomm products and services for the financial year 2005.
The public sector will continue to invest in infocomm in financial year 2006, with an estimated US$400 million worth of tenders planned. Some key projects include the multi-million dollar Human Resource (HR) Transformation project by the Ministry of Defence; the Facility Management Bulk Tender to provide professional infocomm manpower services for the Singapore Government by the IDA; the Integrated Security System for Changi Prison Complex by Ministry of Home Affairs; the Student Hub to migrate student information to an open platform by Ministry of Education; and the New Human Resource and Finance System by the National Library Board.
Singapore government procurement information can be found at GeBIZ (Government Electronic Business), the Singapore government one-stop electronic portal for vendors and suppliers. The website is www.gebiz.gov.sg.
According to the latest study by New York-based Access Market Information (AMI) Partners Inc., small and medium-sized enterprises (SMEs) in Singapore are on track to spend as much as US$1.83 billion on IT in 2007, a healthy 8.4% growth from 2006. The bulk of the growth will come from three sectors – wholesale, retail and manufacturing – which will account for up to 60% of overall IT spending. Since 2003, Singapore-based SMEs have invested more than US$600 million on wireless connectivity solutions including wireless local area networks, virtual private networks and wide area networks. These SMEs are now seeking to implement solutions that will enable them to effectively keep in contact with remote locations while simplifying the management of inter-office moves and facilitating smooth employee relocations. AMI defines SMEs as commercial enterprises with up to 1,000 employees.
Resources
Trade Show
CommunicAsia/Broadcast Asia, June 19-22, 2007
Key websites
http://www.sitf.org.sg/marketplace/bizopp.aspx
http://www.export.gov/market_research/index.asp
U.S. Commercial Service, Singapore Contact
Ms. CHIA Swee Hoon, Senior Commercial Specialist
Email: SweeHoon.Chia@mail.doc.gov