Empowering Asean nations the Singapore ‘startup’ way

Singapore has assumed chairmanship of Asean this year, and this has brought with it a sense of optimism among members of the association.

Singapore is not only a founding member of Asean, it is also the richest nation in the region, boasting an economic model admired throughout the world.

In May, a study from Morgan Stanley showed that Singapore outpaced other Asean countries – including Thailand, Indonesia, Malaysia, and the Philippines – in terms of growth in earnings per share (EPS) revisions.

Based on its chairmanship theme, ‘Innovation’, there is some hope that the region will catch Singapore’s entrepreneurship fever. For that to happen, the region must become more startup friendly.

Singapore intends to push for innovation and wider access to technology to improve living standards in the region, further integrating Asean in the digital world.

The city-state has proposed the creation of an Asean Smart Cities Network in a move to bridge the economic divide among the different member states and integrate Southeast Asian cities through the use of digital technology. And Singapore may have the key to accelerate technological progress in Asean cities: a strong startup ecosystem.

According to the ‘Big Mac Index’, Singapore is becoming one of the world’s top locations for startups, and many countries in the region have already started following the tiny republic’s lead when it comes to innovation.

However, they are yet to experience the same success as Singapore. Take the ride-hailing company Grab as an example. It started its innovative journey in neighbouring Malaysia but it could not resist the lure of greener pastures in Singapore’s startup world.

Today, Grab is a dominant force within Asean and has impacted the livelihoods of many, including students and drivers who could not make it in the taxi world.

Starting as just a ride-hailing firm, Grab has expanded to offer ride sharing and logistics services.

It acquired Uber’s Southeast Asia business earlier this year, and raised a new round of funding in June led by Toyota, who is committing $1 billion in capital. The deal values Grab at more than $10 billion.

In 2017, Singapore overtook Silicon Valley as the number one place for startup talent thanks to its innovative policies and great startup ecosystem, according to the Big Mac Index.

Tech startups in Singapore enjoy significant government subsidies, and research claims that by 2020 Singapore will be home to 188,000 millionaires.

Indonesia is another country where startups are having a good run. Take Go-Jek, a Grab rival that raised $1.5 billion in February. With this round of funding, it is now valued at about $5 billion, according to sources.

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