Construction & Building Technologies Market Study

JULY 2019

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The information and views set out in this study are those of the author(s) and do not necessarily reflect the official opinion of the European Union. Neither the European Union institutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein. The contents of this publication are the sole responsibility of EU Gateway | Business Avenues and can in no way be taken to reflect the views of the European Union. The purpose of this report is to give European companies selected for participation in the EU Gateway | Business Avenues Programme an introductory understanding of the target markets countries and support them in defining their strategy towards those markets. For more information, visit www.eu-gateway.eu.

EU Business Avenues in South East Asia

Central Management Unit

Singapore Market Study

July 2019

Submitted to the European Commission on 09 July 2019

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Table of Contents

LISTS OF FIGURES ...... 6

LISTS OF TABLES ...... 7

TABLE OF ABBREVIATIONS ...... 8

1. EXECUTIVE SUMMARY ...... 9

2. WHAT ARE THE CHARACTERISTICS OF SINGAPORE? ...... 15 2.1 POLITICAL OVERVIEW ...... 15 2.2 ECONOMIC OVERVIEW ...... 16 2.3 TRADE OVERVIEW ...... 17 2.4 MARKET ACCESS ...... 21 2.5 BUSINESS AND COMPETITIVE ENVIRONMENT ...... 22

3. MARKET OVERVIEW & EU ENTRY OPPORTUNITIES IN SINGAPORE ...... 25 3.1 THE SINGAPOREAN CONSTRUCTION AND BUILDING TECHNOLOGY SECTOR ...... 25 3.1.1 The Singaporean Construction Industry ...... 25 3.1.2 Key Organisations and Associations ...... 35 3.1.3 Entry Strategies ...... 37 3.1.4 Challenges & Entry Barriers ...... 39 3.2 CONSTRUCTION MACHINERY ...... 41 3.2.1 Market Overview ...... 41 3.2.2 EU Entry Opportunities ...... 53 3.3 BUILDING MATERIALS AND BUILDING INSTALLATION ...... 60 3.3.1 Market Overview ...... 60 3.3.2 EU Entry Opportunities ...... 67 3.4 SMART AND GREEN BUILDING ...... 76 3.4.1 Market Overview ...... 76 3.4.2 EU Entry Opportunities ...... 91 3.5 SMART GRIDS ...... 100 3.5.1 Market Overview ...... 100 3.5.2 EU Entry Opportunities ...... 110

4. REGULATIONS ...... 118 4.1 GENERAL IMPORT PROCEDURES ...... 118 4.2 WSH ACT AND REGULATIONS FOR MAINTENANCE ...... 119 4.3 BUILDING MATERIALS ...... 121 4.4 GOVERNMENT TENDERS ...... 122

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5. ANNEX ...... 124 5.1 LIST OF USEFUL CONTACTS ...... 124 5.2 STARTING A BUSINESS IN SINGAPORE ...... 126 5.3 USEFUL STATISTICS ...... 131 5.4 BIBLIOGRAPHY ...... 137

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Lists of Figures

Figure 1: Map of Singapore ...... 15 Figure 2: Singapore’s President Followed by the Prime Minister ...... 16 Figure 3: EU-Singapore FTA ...... 19 Figure 4: Changi Airport Terminal 5 ...... 26 Figure 5: Prefabricated, Prefinished Volumetric Construction in Singapore ...... 27 Figure 6: 3D Printing and Augmented Reality Used for Prototype Designing ...... 29 Figure 7: Peanut Shaped Diaphragm Wall ...... 30 Figure 8: Prefabricated Bathroom Unit ...... 32 Figure 9: Cities of Tomorrow R&D Programme ...... 33 Figure 10: A Shotcrete Pumps at a Construction Site ...... 44 Figure 11: Robotic Tiling Machine ...... 45 Figure 12: QuicaBot ...... 46 Figure 13: Pictobot ...... 46 Figure 14: Road Rail Vehicle ...... 47 Figure 15: Zero G Technology ...... 47 Figure 16: The Wind Funnel above Capita Green ...... 49 Figure 17: Volvo’s Machines Being Deployed in Singapore ...... 56 Figure 18: SMU School of Law ...... 61 Figure 19: ICPHs Allow For More Efficient Use of Land and Highly Mechanised and Automated Systems ...... 69 Figure 20: Steel Slag is Used in Singapore for Road Surfacing ...... 69 Figure 21: JTC Launchpad@one-north ...... 71 Figure 22: Official Opening of CRH’s Regional Headquarters in Singapore ...... 72 Figure 23: Jewel Changi Airport ...... 77 Figure 24: The Commonality of Smart & Green Buildings ...... 79 Figure 25: The Green Buildings Innovation Cluster (GBIC) ...... 81 Figure 26: The BCA Green Building Masterplan ...... 82 Figure 27: The Centre for Lean & Virtual Construction ...... 83 Figure 28: Singapore’s Smart City Vision...... 85 Figure 29: The Opening of Engie’s Lab in Singapore ...... 97 Figure 30: Conceptual Overview of Singapore’s Intelligent Energy System (IES) ...... 100 Figure 31: Solar PV Installations on Public HDB Blocks ...... 106 Figure 32: Klug Home Plugged into a Router ...... 109 Figure 33: The Vice President of Energy Business Unit at Schneider Electric Singapore ...... 116

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Lists of Tables

Table 1: Ease of Doing Business in Singapore, 2019 ...... 22 Table 2: 2018 Global Ranking for Transport Infrastructure ...... 23 Table 3: Value of Imports of Construction Machinery ...... 41 Table 4: Largest Trading Partners for Export of Construction Machinery to Singapore in 2018 ...... 42 Table 5: Largest Trading Partners for Imports of HVAC Systems in 2018 ...... 50 Table 6: Imports of Earths and Stone; Plastering Materials, Lime and Cement into Singapore ...... 131 Table 7: Exports of Earths and Stone; Plastering Materials, Lime and Cement from Singapore ...... 131 Table 8: Imports of Wood and Articles of Wood; Wood Charcoal into Singapore ...... 132 Table 9: Exports of Wood and Articles of Wood; Wood Charcoal from Singapore ...... 132 Table 10: Imports of Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials into Singapore ...... 133 Table 11: Exports of Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials from Singapore ...... 133 Table 12: Imports of Ceramic Products into Singapore ...... 134 Table 13: Exports of Ceramic Products from Singapore ...... 134 Table 14: Imports of Glass and Glassware into Singapore ...... 135 Table 15: Exports of Glass and Glassware from Singapore...... 135 Table 16: Imports of Iron and Steel into Singapore ...... 136 Table 17: Exports of Iron and Steel from Singapore ...... 136

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Table of Abbreviations

A*STAR Agency for Science, Technology and Research ACRA Accounting and Corporate Regulatory Authority AEC ASEAN Economic Community AFTA ASEAN Free Trade Area ALPINE Asia Leaders Programme in Infrastructure Excellence AMI Advanced Metering Infrastructure ASEAN Association of South East Asian Nations BCA Building and Construction Authority BEX Build Eco Xpo BIM Building Information Modelling BREEF Building Retrofit Energy Efficiency Financing CA Companies Act CLT Cross Laminated Timber CLVC Centre for Lean and Virtual Construction DfMA Design for Manufacturing and Assembly EDB Economic Development Board EMA Energy Market Authority EPGC Experimental Power Grid Centre EPPU Expenditure and Procurement Policies Unit EWS Engineered Wood System FTA Free Trade Area GBIC Green Buildings Innovation Cluster Glulam Glued Laminated Timber GMIS-EBP Green Mark Incentive Scheme for Existing Buildings and Premises GST Goods and Services Tax HDB Housing and Development Board HVAC Heating, Ventilation, and Air Conditioning ICPH Integrated Construction and Prefabrication Hub ICT Information and Communication Technology IES Intelligent Energy System IGBC International Green Building Conference IoT Internet of things MOU Memorandum of Understanding NECF National Energy Competency Framework NTU Nanyang Technological University NUS National University of Singapore PAP People’s Action Party PPVC Prefabricated Pre-finished Volumetric Construction PUB Public Utilities Board R&D Research & Development RCMA Renovation Contractors and Material Suppliers Association SCAL Contractors Association Limited SCPW Singapore Construction Productivity Week VDC Virtual Design and Construction

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1. Executive Summary

Singapore is a modern bustling city that has adopted the conveniences of modern life and technology. Western culture is embraced, and plays a big role in brand and lifestyle consumerism. The city-state, which is recognised as a leading financial and high-tech hub of the region, is a high-income, free-market economy in South East Asia. It offers an open and corruption-free environment to businesses in the market, and attracts prominent companies from across the globe to invest and operate in the country. Currently home to a population of over 5 million, consisting of both locals and foreigners, Singapore recorded an estimated GDP of S$ 481.1 billion (EUR 312 billion) in 2018.

The Building and Construction Authority (BCA) projects the total value of construction contracts to be awarded in Singapore in 2019 will be between S$ 27 billion (EUR 17.5 billion) and S$ 32 billion (EUR 20.7 billion). Companies with presence in Singapore will have a stronger foothold into the building technology market in Asia, which is forecast to be worth S$ 1,036 billion (EUR 672 billion) by 2020.1

With a projected 60% of demand in the construction sector in the next few years set to originate from the public sector, the Singapore government is taking the lead in the adoption of new construction technology. In April 2017, Singapore’s Ministry of National Development announced a target to quadruple the number of construction projects that use more efficient technologies by 2020. Currently, only one in ten construction projects use these newer technologies, such as prefabricated pre-finished volumetric construction, which involves building modules in factories before assembling them on-site; structural steel, which is fabricated in factories before installation on-site; and modular mechanical, electrical and plumbing systems, which involve prefabricating and joining mechanical pipework and fittings off-site. Singapore targets to have four in ten projects embracing the latest construction technologies by 2020.

1 BuildTech Asia 2016 offers new technological insights to the building and construction sector, BuildTech Asia

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Singapore is pursuing initiatives and projects that will position the country as a smart and sustainable city, creating opportunities for green and efficient technologies. The country is also well- placed to export urban solutions and technologies in areas such as built environment and city management, urban mobility, energy, safety and security, and environment and water. Singapore also attracts foreign companies by providing incentives and living lab opportunities to test and develop smart city technologies in the country that can also be adopted by other countries.

Construction Machinery

In 2018, imports of construction machinery into Singapore were valued at around US$ 592 million (EUR 528 million).2 Singapore’s largest trading partners are China, Japan, and Germany, which collectively supplied construction machinery worth more than US$ 280 million (EUR 250 million) to Singapore in 2018. By promoting the use of advanced construction machinery, the Singaporean government hopes to increase construction productivity by up to 3% annually until 2020.

Singapore is also gearing towards construction machines that decreases labour and increases productivity. Local construction companies are investing in R&D to develop machines that will enable them to solve hindrances in making them complete their projects more efficiently.

Building Materials and Building Installation

Singapore imports almost all its construction materials, consisting predominantly of ready mixed concrete, steel bars, granite, concreting sand and cement. The industry is focusing on increasing the use of eco-friendly construction materials to reduce the burden on the environment.

Eco-friendly construction materials that are currently in use in Singapore include copper and steel slag, recycled aggregates, and eco-concrete. More recently, Singapore is advocating the use of cross-laminated timber and glued laminated timer (glulam) for building construction for improved productivity and efficiency.

2 Source: ITC Trade Map (HS Codes 8429, 8430, 8474)

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Smart and Green Building

Since the introduction of the BCA (Building & Construction Authority) Green Mark in 2005, the BCA has reached many milestones and greened more than 2,700 buildings in Singapore. Today, there are 17 BCA Green Mark Schemes in place, covering buildings and beyond as well as occupant- centric ones. With that, more than 31% of Singapore’s built area is now Green Mark certified.

The BCA’s Green Building Master Plan has also been successful in inducing green growth in Singapore. Buildings in Singapore are getting greener, more efficient, and smarter with the integration of new technologies into their design. Singapore has launched several test-beds and demonstration facilities in a bid to strengthen its capabilities and positioning in the smart and green building technologies sector, with special expertise in the tropics and sub-tropics. The country’s plan is to achieve high energy-efficiency standards for 80% of its buildings by 2030, as well as attracting investors and exporting Singapore’s green building solutions abroad.

Singapore is pushing for smart and green building technologies by providing assistance and grants to companies that want to adopt such technologies. The government is also active in informing the public and private sectors about the benefits that could be gained when they use such technologies.

Smart Grids

Singapore’s electric grid system is recognised as one of the most reliable and stable grid systems in the world. Singapore is continuously looking for ways to improve its reliability, efficiency, and integration of energy sources through technological innovation, and the country is exploring new smart grid solutions, such as micro-grids and solutions that use renewable energies. South East Asia is expected to invest US$ 24.6 billion (EUR 22 billion) in smart grid infrastructure between 2016 and 2026,3 and Singapore is well positioned to be the smart grid hub for the region.

3 Southeast Asia Smart Grid: Market Forecast (2016-2026), 2016, PR Newswire

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Opportunities

Growth of Construction Activities in Singapore and South East Asia

The BCA projects that the total construction demand (i.e. the value of construction contracts to be awarded) in Singapore in 2019 will range between S$ 27 billion (EUR 17.5 billion) and S$ 32 billion (EUR 20.7 billion). Public construction demand is also projected to be boosted by major infrastructure and a pipeline of major industrial buildings. Meanwhile, the construction demand of the country’s private sector is expected to remain steady at the range of S$ 10.5 billion (EUR 6.8 billion) and S$ 12.5 billion (EUR 8.1 billion) in 2019.

Opportunities for Singapore-based contractors and consultancy firms to provide services to other markets in South East Asia are also increasing. Singapore companies are now looking at construction and infrastructure projects in the region, opening opportunities for growth.

As a signatory to the World Trade Organisation’s Agreement on Government Procurement (WTO-GPA) and various Free Trade Agreements, Singapore is required to ensure fair competition and non-discrimination between foreign or local suppliers. Its procurement regime is therefore an open one where EU companies with the relevant expertise can compete based on their ability to meet tender requirements.

Growing Demand for Energy-Saving Technologies & Materials

Singapore is scarce in natural resources. As energy-efficient technologies have the double advantage of being environmentally-friendly, and allow for a more efficient use of resources, Singapore is investing in their development and adoption, targeting in particular those technologies that can increase productivity while lowering reliance on manpower. New technologies are being experimented in Singapore, and the BCA is strongly supporting projects aimed at improving energy efficiency of buildings. In the long run, Singapore hopes to achieve a highly productive workforce and a fatality-free workplace, while ensuring the highest level of building quality creating opportunities for construction and building technologies that can support these goals. In this direction, BCA had identified and pushed for adoption of game-

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changing construction technologies such as Prefabricated Pre-finished Volumetric Construction (PPVC), Engineered Wood System (EWS) and off-site manufacturing for on-site assembly. Given the country’s openness to adopting new productivity-enhancing and energy-saving measures in the building and construction sector, Singapore offers a ready marketplace of receptive and sophisticated building owners, managers and end-users, facilitated by business-conducive infrastructures and policies.

Environmental Regulation and Green Schemes

As illustrated by the Third Green Building Masterplan, Singapore has a strict environmental regulation. For a number of years, the BCA has been implementing regulations and offering incentives to the local industry to develop systems, products and methods that are environmentally friendly. Singapore is now seeing a clear shift in mind-set, with green buildings now regarded as a form of value creation for the building and construction industry. For example, adding green building certifications such as BCA’s Green Mark to a development’s list of credentials can help boost the developer’s corporate image and the prestige of such developments.

BCA expects that the next decade will see a shift from top-down government initiatives to the pioneering of ground-up initiatives to move forward the Singapore green building industry. A growing number of local businesses in the building and construction supply chain are keen to showcase their green capabilities, creating opportunities for European companies offering eco-friendly technologies.

Research & Development

With limited land, Singapore has taken an integrated approach to urban planning, developing the city-state into the thriving business and financial centre it is today. Innovative projects such as the Punggol Eco-Town and the Jurong Lake District (which is slated to be the largest commercial area outside of the city area), the Capital Tower, together with initiatives like the National Green Building Energy Efficiency Repository and the Green Buildings Innovation Cluster, are placing Singapore at the forefront in the adoption of construction and building technologies in South East Asia. The country also has a growing number of test-beds and demonstration facilities. In 2016,

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it launched the world’s first rotatable laboratory for the tropics, as part of its effort to push the boundaries on environmental sustainability and promote innovations in energy efficient buildings and universal design in construction.

Due to the progressive nature of Singapore and its determination to be the most advanced city in the world, the government is actively funding research development and deployment, test bedding and demonstration projects that are all followed by wide scaled adoptions in the country.

Access to South East Asia

As a role model in the region, Singapore also opens doors to the regional marketplace. Singapore is an excellent launch-pad for European companies that want to tap onto the growing opportunities in the region. Singapore’s strategic location at the heart of South East Asia, coupled with its expertise in green building, financing and risk management institutions, consultancies and law firms, allows the country to share its expertise with the region’s stakeholders.

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2. What are the characteristics of Singapore?

Figure 1: Map of Singapore Source: Wikimedia Commons

Singapore is a small, multi-cultural and cosmopolitan city-state of 5.53 million people in the very heart of South East Asia. Its total area is recorded at 719.7 km2, with 10 km2 of that made up of water. Singapore experiences hot, humid and rainy conditions all year long, with north-eastern monsoon from December to March and south-western monsoon from June to September.

The country is one of the most politically stable nations among the ten Members States that make up ASEAN. Different ethnic groups live harmoniously in Singapore, which recognises English, Mandarin, Malay and Tamil as its official languages. The Chinese make up the largest ethnic group, with 74.3%, followed by Malays (13.3%), Indians (9.1%) and others (3.2%).

2.1 Political Overview

As a parliamentary democratic republic, Singapore’s parliament is very much modelled after the Westminster system. The Head of State is the President who is elected directly by the people through popular vote in a presidential election, following the amendments to the Constitution of

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Singapore in 1991. The current incumbent is President Halimah Yacob who is Singapore’s 8th President and the country’s first female President. She was elected in 2017.

Figure 2: Singapore’s President (Halimah Yacob) Followed by the Prime Minister (Lee Hsien Loong) Source: Active India

Since 1959, The People’s Action Party (PAP) has been the ruling party governing Singapore. Members of Parliament are chosen through a general election for a term of five years. The last general election was held in 2015 with PAP securing a landslide victory with 69.86% of the vote, winning 83 of the 89 elected seats in parliament. The three organs of state are the Executive, the Legislative and the Judiciary. The Prime Minister, Mr. Lee Hsien Loong, is the effective head of the executive branch of government since August 2004. The Supreme Court, together with subordinate courts, holds the judicial power.

2.2 Economic Overview

A leading global business hub, Singapore offers an open and trade-driven economy that was ranked 3rd globally in terms of GDP per capita (based on PPP) in 2017.4 Singapore registered

4 International Monetary Fund (2018). World Economic Outlook Database, January 2018.

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a GDP growth of 3.2% in 2018, and is projected to grow by a range of 1.5% - 3.5% for 2019.5 Categorised as a high-income nation, its current GNI per capita is US$ 70,828 (EUR 63,179).6

The Singapore government has pursued an outward-looking, export-oriented economic policy that encourages two-way flows of trade and investment. This has enabled Singapore to become a global trading hub with a trading capacity almost three times its GDP.

Singapore’s major industries include electronics, financial services, oil drilling equipment, petroleum refining, pharmaceutical manufacturing, processed food and beverages, rubber products, aerospace and ship repair, as well as its biotechnology, chemical and petrochemical industries. Singapore has also become an important financial, trade and wealth management hub for the South East Asia region and a global hub for currency and commodity trading, transhipment and oil and gas refining.

Singapore's economic success is likely to be maintained in the future, but given the country's reliance on trade, it will be at risk of periodic slowdowns or recession when key export markets face economic pressure. However, healthy public finances, a strong net-creditor position, and solid economic fundamentals all contribute to Singapore's economic stability.

2.3 Trade Overview

Singapore continues to top global rankings when it comes to enabling trade, according to the Global Enabling Trade Report 2016 from the World Economic Forum, which found that the domestic market here is one of the world’s most open. More than 99% of goods enter the country duty-free7, while border clearing processes are the world’s best in terms of efficiency, predictability and transparency.8 Singapore ranked as the 15th largest exporter and the 16th largest importer in the world9 in 2018, making it a significant market despite its small size.

5 https://www.straitstimes.com/politics/singapore-economy-grew-by-33-in-2018-enters-2019-with-renewed-vigour-and-purpose-pm-lee 6 Data.gov.sg (2018). Per Capita GNI and Per Capita GDP at Current Market Prices, Annual. 7 https://www.export.gov/article?id=Singapore-Import-Tariffs 8 World Economic Forum (2016). The Global Enabling Trade Report 2016. 9 ITC Trade Map

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Free-trade agreements are a cornerstone of Singapore's economic policy. The country depends heavily on foreign trade and it has implemented 21 FTA agreements with 32 trading partners. It has inked bilateral trade deals with the U.S., Japan, Australia, New Zealand, South Korea, India, Jordan, China, India, Costa Rica, Panama, Turkey, and Peru. Singapore is also a member of the ASEAN Free Trade Area (AFTA), which plays a key role in Singapore’s intra-Asian trade. ASEAN has FTAs with China, India, Japan, South Korea, Australia and New Zealand.10 Singapore is also a party to the Trans Pacific Partnership, which was signed in March 2018 between 11 countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.11

In October 2018, the EU and Singapore signed three trade agreements, namely the EU-Singapore Free Trade Agreement; the EU-Singapore Investment Protection Agreement; and the Framework Agreement on Partnership and Cooperation. On 13 February 2019, the European Parliament gave its consent to the three agreements following a vote.

Following this approval, both the EU and Singapore will undertake their respective internal administrative processes to enable the EUSFTA to enter into force as soon as possible. The trade agreement is likely to enter into force before the end of the current mandate of the European Commission in 2019. When in force, the free trade agreement will bring dividends for both parties. It will remove nearly all remaining tariffs on certain EU products, improves market access for services, reinforces intellectual property protection, competition policy and technical barriers to trade and government procurement.

The EUSFTA covers tariff free access for goods, improved market access for service, reinforces intellectual property protection, competition policy and technical barriers to trade and government procurement. It also the first ‘green FTA’ especially designed to stimulate green growth and remove trade obstacles for green technologies.

10 Enterprise Singapore (2018). Singapore Free Trade Agreements. 11 Channel News Asia (2018). Singapore Inks New TPP Trade Pact with 10 Countries.

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Figure 3: EU-Singapore FTA Source: The Straits Times

The investment protection agreement will also follow ratification procedures at Member State level. The Investment Protection Agreement will replace 12 existing bilateral investment treaties between Singapore and EU Member States and offer investors the option of a modern and reformed investment dispute resolution mechanism – the Investment Court System – in line with the EU’s new approach. The Partnership and Cooperation Agreement will need to be ratified by EU Member States and submitted to the European Parliament before it enters formally into force.

The EU is Singapore’s third largest trading partner12, with combined trade in goods and services crossing the EUR 100 billion landmark in 2018.13

Singapore remains the EU’s single largest trading partner for goods in the ASEAN region, with a share of nearly 25% of total EU-ASEAN trade in 2018. During 2018, EU exports of goods to Singapore grew by 11.7% to reach EUR 37.1 billion, while imports increased by 4.8% compared to

12 European Parliament Approves EU-Singapore Free Trade Agreement and EU-Singapore Investment Protection Agreement, 2019, Ministry of Trade and Industry 13 EU-Singapore trade surpasses €100 billion landmark, 2019, European Union Delegation to Singapore

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2017 to reach EUR 21 billion.14 EU exports to Singapore were largely dominated by exports of machinery and transport equipment (46.7%), which grew by 16.8% compared to 2017, followed by chemical products (14.3%). The EU imported organic chemicals and pharmaceutical products from Singapore, which accounted respectively for 26.2% and 13.6% of total Singapore exports to the EU.

According to the latest available data, EU-Singapore bilateral trade in services reached EUR 51 billion in 2017. The EU exported services valued at EUR 28.8 billion to Singapore during the year, while importing EUR 22.3 billion of services from Singapore. Intellectual property services (27.8%), business services (25%), transport services (22.8%) and financial services (11.8%) accounted for the bulk of the trade. Since 2013, EU-Singapore trade in services has expanded by 35% and Singapore has become the third largest partner for trade in services after China and Japan.

The EU is the largest investor in Singapore, putting EU Foreign Direct Investment (FDI) stock in Singapore at over S$ 350 billion (EUR 227 billion) in 2017. The robust inflow of EU FDI has also made Singapore the largest EU FDI destination in ASEAN. The top sectors for EU FDI in Singapore are manufacturing, wholesale and retail trade, and financial and insurance services.

In 2017, the existing bilateral foreign direct investment stock between the EU and Singapore was roughly EUR 344 billion, having expanded rapidly over the past years.

Singapore’s economy depends heavily on trade flows, particularly in consumer electronics, IT products, pharmaceuticals, petroleum products, and on a growing financial services sector. As a strong advocate of free trade, Singapore is generally a free and open economy. It has few trade barriers except for selected dutiable goods - alcohol, petroleum products, tobacco products and motor vehicles. There are some import restrictions based mainly on environmental, health, and public security concerns.

14 Eurostat

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2.4 Market Access

There are at present over 10,000 European companies in various sectors operating in Singapore. Most of these companies are using their establishment in the city-state to serve as their regional hub to Asia. European companies looking to do business in Singapore can expect an emphasis on integrity, adaptability and respect for intellectual capital by a strategic-minded administration, which is attuned to the needs of companies to protect invention and innovation.

Using agents or distributors is a common and effective way to serve the Singapore market and, from here, the other countries in South East Asia. Many distributors in Singapore deal not only with the local market but also with the broader regional market. Prospective exporters to Singapore should be aware that competition is high and that buyers expect good after-sales service. When business warrants, many companies have found it useful and sometimes necessary to set up offices in Singapore.

On 31 December 2015, the ten ASEAN Member States established a common market, the ASEAN Economic Community (AEC), a boost to South East Asia's combined economic clout as the world's seventh largest economy. The AEC has an estimated economic value of US$ 2.6 trillion (EUR 2.3 trillion) annually, powered by a fast-growing market of more than 600 million people.15 Being part of the AEC makes Singapore an attractive choice for firms looking to tap the growth potential of the bloc.

Singapore’s strategic location in the heart of Asia enables businesses to access the region’s rapidly expanding markets. Singapore has strong business, cultural and linguistic links to many Asian markets. Singapore’s cultural and linguistic connections across Asia, highly qualified workforce, and openness to top global talent makes it the preferred location to support the global business community in their expansion in Asia.

15 World Economic Forum (2016). The ASEAN Economic Community: What You Need to Know.

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2.5 Business and Competitive Environment

The World Bank ranked Singapore at the number two spot in its Doing Business Rank for 2019, recognising it as among the most business-friendly nations in the world. All the more significant is that Singapore has been ranked as one of the best places for doing business for more than a decade.

Well-organised governance has given rise to some of the world's finest infrastructure, including sophisticated telecommunications networks, extensive public transportation, well-managed healthcare and education, and ultra-modern air and seaport facilities.

Ease of Doing Business in Singapore 2019 Rank 2018 Rank Change in Rank

Overall 2 2 No change

Starting a business 3 6 +3

Dealing with construction permits 8 16 +8

Getting electricity 16 12 -4

Registering property 21 19 -2

Getting credit 32 29 -3

Protecting minority investors 7 4 -3

Paying taxes 8 7 -1

Trading across borders 45 42 -3

Enforcing contracts 1 2 +1

Resolving insolvency 27 27 No change

Table 1: Ease of Doing Business in Singapore, 2019 Source: World Bank

Singapore Changi Airport has received multiple awards and accolades and is consistently ranked by numerous airport rating agencies as one of the best international airports in the world. In 2018, it registered a strong performance, handling a record 65.6 million passenger movements for the year with 386,000 landings and take-offs. Airfreight throughput increased by 1.4% to reach 2.15 million tonnes for 2018. Changi International Airport is linked to 300 cities in 70 countries.

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Singapore is one of the world’s premier hub ports, offering a breadth and range of maritime services that few can match. The Port of Singapore recorded a total of 630 million tonnes of cargo in 2018, while annual vessel arrival tonnage reached 2.79 billion gross tonnes.16 It is currently the busiest transhipment port in the world, connecting Singapore to over 600 ports in over 120 countries. Other modern infrastructure in the country includes extensive lines of roads and railroads, which ensure efficient movement of people and goods.

According to the 2018 World Economic Forum’s annual Global Competitiveness Report, Singapore ranks first in the world for the quality of its transport infrastructure.

Ranking Country Score 1 Singapore 6.5 2 United Arab Emirates 6.5 3 Hong Kong 6.5 4 Netherlands 6.4 5 Japan 6.1 6 United States of America 6.0 7 France 6.0 8 Qatar 5.8 9 South Korea 5.8 10 Germany 5.8 Table 2: 2018 Global Ranking for Transport Infrastructure Source: World Economic Forum

The tax system is well established and considered to be investor-friendly, reflecting Singapore's overall favourable attitude towards foreign investment. The government is keen to attract foreign investment and is unlikely to undertake tax or other measures that might dissuade such investment. The responsibility to handle tax issues is vested in the Inland Revenue Authority of Singapore. It offers various taxation schemes for individuals residing in Singapore as well as corporations operating there. Tax incentives are available to R&D activities of all industries and a special tax regime for the banking, fund management, leasing and shipping sectors.

16 http://www.seatrade-maritime.com/news/asia/singapore-container-port-volumes-up-8-7-in-2018.html

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To encourage enhancement in economic and technological development, tax incentives in the form of reduction of tax rate or exemption from applicable tax are offered to various industries including manufacturing and services, investment and financial services, shipping and trading. Singapore also offers regional and international headquarters tax incentives to corporations operating from the country to serve international and regional markets.

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3. Market Overview & EU Entry Opportunities in Singapore

3.1 The Singapore Construction and Building Technologies Sector

In recent years, the Singapore government has been championing the adoption of new technologies in the building and construction sector to increase productivity and reduce reliance on foreign manpower. Before analysing the Construction and Building Technologies sector in detail, it will be useful to consider the drivers of demand of the Singapore construction industry and the challenges it faces.

3.1.1 The Singaporean Construction Industry

According to the Ministry of Trade and Industry’s statistics, Singapore’s economy grew by 3.2% in 2018, a decrease from the 3.9% growth in 2017. On the other hand, the construction industry fared slightly better, dropping by only 3.4% in 2018 compared to the 10.2% decrease in the previous year. A fall in public sector construction works contributed to the drop, although private sector construction works grew marginally.

The BCA projects that the total construction demand (i.e. the value of construction contracts to be awarded) in Singapore in 2019 will range between S$ 27 billion (EUR 17.5 billion) and S$ 32 billion (EUR 20.7 billion), as opposed to the preliminary estimate of S$ 30.5 billion (EUR 19.8 billion) in 2018. There will be a sustained public sector construction demand in the country, expected to reach between S$ 16.5 billion (EUR 10.7 billion) and S$ 19.5 billion (EUR 12.6 billion) in 2019 and projected to contribute around 60% of the demand in 2019.

Public construction demand is also projected to be boosted by major infrastructure and a pipeline of major industrial buildings. Meanwhile, the construction demand of the country’s private sector is expected to remain steady at the range of S$ 10.5 billion (EUR 6.8 billion) and S$ 12.5 billion (EUR 8.1 billion) in 2019, supported by projects that include the redevelopment of past en-bloc sales sites concluded prior to the second half of 2018 and new industrial developments.

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The BCA is expecting a steady improvement in construction demand over the medium term. Demand is projected to reach between S$ 27 billion (EUR 17.5 billion) and S$ 34 billion (EUR 22 billion) per year for 2020 and 2021, and could increase to between S$ 28 billion (EUR 18.2 billion) and S$ 35 billion (EUR 22.7 billion) per year for 2022 and 2023.

The country’s public sector is estimated to contribute S$ 16 billion (EUR 10.4 billion) to S$ 20 billion (EUR 13 billion) per year from 2022 to 2023 with similar proportions of demand coming from building projects and civil engineering works. In addition to public residential developments, public sector construction demand over the medium term will continue to be supported by large infrastructure projects such as Cross Island Line, developments at Jurong Lake District, and Changi Airport Terminal 5.

Figure 4: Changi Airport Terminal 5 Source: Aviation Week Network

Keen competition and reduced construction demand affected Singapore’s construction sector in 2018, with the government pushing the industry to adopt modular construction methodology such as Prefabricated, Prefinished Volumetric Construction (PPVC) and Prefabricated Bathroom Units (PBU) to raise productivity. City Developments Limited (CDL), Dragages Singapore Pte Ltd and Teambuild Engineering & Construction Pte Ltd were among the first few in the industry to adopt PPVC in Singapore, where building modules complete with finishes, fixtures and fittings are

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manufactured off-site in factories, and then transported to the site for installation in a ‘Lego-like’ manner.

Figure 5: Prefabricated, Prefinished Volumetric Construction in Singapore Source: BCA

The BCA is continuing its push for the adoption of advanced construction methods in both the public and private sector projects in order to improve productivity and enhance infrastructure sustainability. To help encourage firms to invest in technology and innovation, the BCA plans to expand the Building Innovation Plan (BIP) which is an inter-agency platform that accelerates the regulatory clearance of technologies that improve construction activities.

The BIP covers any type of innovation that can improve Singapore’s built environment. Such innovations include advances and sustainable building materials, technologies for green buildings and automation for construction. The enhanced BIP was implemented in February 2019 and will:

◼ Identify innovative technologies for use in construction by tracking new innovations, and conducting focus group discussions with the industry to identify trends and promote adoption of such innovative technologies;

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◼ Support innovative technologies across the value chain, from upstream research to technology deployment. For example, BIP can help match inventors promising new construction innovation with progressive builders/developers, so that it can be implemented in an actual project.

◼ Be a platform for multi-agency regulatory approval of the use of these innovative technologies. For example, to allow multiple agencies’ evaluation and approval of innovative technologies expeditiously.

According to a report by SGSME, a Singaporean online magazine, Asia’s share of global construction will reach 40% by 2024, with a nominal value of US$ 2.4 trillion (EUR 2.1 trillion). As such, Singapore construction companies are also becoming more competitive to be able to build faster and more efficiently, aiming at winning construction projects outside Singapore.

A survey commissioned by BCA revealed that there were 117 SME contractors (with more than 50 employees) per US$ 1 billion (EUR 0.9 billion) of construction output. This is extremely high compared with other countries. For example, Canada has 39 contractors per US$ 1 billion (EUR 0.9 billion) output, while Japan has just 14.17

Beyond opportunities in Singapore, countries across South East Asia have launched infrastructure programmes to stimulate growth and build a base for the future. This in turn presents tremendous growth and investment opportunities, especially in emerging markets where expertise in project development, technical expertise, financing and advisory services are very much required. Singapore is well-placed to utilise its infrastructure ecosystem as a springboard to share their expertise with the region.18

As competition in Singapore becomes stiffer, more Singaporean contractors and consultants are venturing overseas and securing projects there. The majority of these overseas construction projects involve renovation and interior works as well as building construction works in the residential and hospitality sectors. Singapore consultancy firms continue to thrive in markets like

17 Building and construction to Singapore, Austrade 18 Infrastructure Opportunities in Asia, IE Singapore

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China, India, Cambodia, Indonesia, Malaysia, Myanmar and Vietnam. The overseas demand for such consultancy services like architectural, civil and structural, mechanical and electrical engineering designs, as well as master planning, is mainly in mixed and residential developments.

It is also worth mentioning that about 18,000 workers are employed by Singapore’s infrastructure sector according to a report by Bird & Bird, and 15 out of the 20 global engineering consultancy companies have their regional operations based out of Singapore. Furthermore, 60% of project financing in South East Asia is managed through Singapore.

Significant changes such as digital construction are happening in the country right now. Digital construction puts technology at the centre of all the steps required to design, construct and operate a building which then requires less reliance on labour. Digital construction used to be mainly adopted by large general contractors or multinational companies that have the resources to invest in the software and hardware, as well as the ability to recruit and train people to use it. However, this is changing as smaller companies are starting to adopt this kind of technology as well. Cloud computing and internet connectivity allows smaller companies to access the same digital tools. Furthermore, cloud-based subscription software enables smaller and more specialised companies to keep up to date with the latest developments on a regular basis.

Figure 6: 3D Printing and Augmented Reality Used for Prototype Designing Source: BCA

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Examples of construction technologies that are being used in Singapore include:

◼ Singaporean contractor Dragages adopted PPVC for the Crowne Plaza Changi Airport Hotel extension and the construction of a nursing home at Woodlands Crescent. Its other key initiatives include using Building Information Modelling (BIM) to drive greater integration across the design and building processes and proposing a “peanut-shaped” diaphragm wall that is faster and requires less labour to construct.

Figure 7: Peanut Shaped Diaphragm Wall Source: BCA

◼ Singaporean contractor Teambuild adopted digital technologies to improve its work processes. These include BIM and Virtual Design and Construction to identify upstream design clashes and simulate construction first in the virtual environment before the actual construction on site. It also developed an in-house mobile application to facilitate quality inspections, a mobile time-card for construction workers, and another mobile application to improve workplace health and safety.

◼ Singapore-based builder, Kimly-Shimizu Joint Venture, used a hybrid structural system comprising of precast columns and steel beams to build in-patient blocks for a community hospital. While this method is used in Japan, this is a first for a healthcare project in

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Singapore. Most of the work is done off-site with its components prefabricated in a controlled manufacturing environment. One floor can be constructed in 8 to 10 days compared to 17 days for a similar project using conventional building methods. This resulted in the faster completion of the hospital. Kimly-Shimizu also used a top-down construction method to construct the basement and the floors above ground concurrently. Special fire-proofing blankets were installed for the steel structure, eliminating labour-intensive wet work on site.

The Singapore government has been taking the lead in establishing a modern and technology- driven construction sector. Recent initiatives of the government are the following:

◼ Construction Industry Transformation Map (ITM) – The Construction ITM was developed in close partnership with the industry, trade associations and chambers, institutes of higher learning and unions. This initiative aims at transforming the construction sector into one that adopts technologies that will enable the sector to become more advanced and integrated. This also plans to train a total of 80,000 professionals specialising in green buildings, Design for Manufacturing and Assembly (DfMA) and Integrated Digital Delivery (IDD) by 2025.

◼ Built Environment Accelerate to Market Program (BE-AMP) – The BE-AMP is an initiative by the BCA and is supported by government agencies Enterprise Singapore and JTC Corporation. BE-AMP has allocated S$ 6 million (EUR 3.9 million) to support the development and commercialisation of innovative technologies that will bring inventors and companies together to fast-track the innovation process that will solve real-world industry challenges related to smart project management and facilities management, construction manufacturing and fabrication, building inspections, knowledge management and data capture, and construction safety. The BCA will work closely with Enterprise Singapore to connect solutions providers, including start-ups, with built-environment companies. JTC will offer spaces in selected buildings and estate to test-bed or pilot new solutions, while TNB Ventures will be the programme’s accelerator partner.

◼ BuildSG Transformation Fund (BTF) – The BTF supports the transformation plans for built environment firms under the ITM as well as support in upskilling and training that will enhance the construction workforce. In 2019, BTF received S$ 295 million (EUR 191 million)

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to help construction companies and government agencies in adopting new technologies related to construction. The Productivity Innovation Project scheme will receive S$ 200 million (EUR 124.7 million) to help companies with solutions that will offer at least a 30% improvement in site productivity.

Figure 8: Prefabricated Bathroom Unit Source: The Business Times

Examples of technologies supported by this scheme are prefabricated bathrooms, where the structure is made off-site, and self-compacting concrete which is more efficient than normal concrete. The remaining S$ 95 million (EUR 61.6 million) will go into the Public Sector Construction Productivity Fund to encourage government agencies to adopt DfMA technology for their construction projects. The DfMA is a productive method of construction which moves traditional on-site work like the building of bathroom units, into off-site factory environments. According to a report by the Straits Times, the public sector is expected to contribute about 60% of projected DfMA demand from 2019 to 2023.

◼ Cities of Tomorrow (CoT) R&D Programme – The vision of the CoT programme launched in July 2017, under the Ministry of National Development of Singapore, is to establish Singapore as a highly livable, sustainable, and resilient city of the future, and as a vibrant urban solutions hub - a living model which features cutting-edge urban solutions. This will be

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achieved through the integrated development of R&D in 4 key verticals, namely, a) Advanced Construction, b) Resilient Infrastructure, c) New Spaces, and d) Greater Sustainability. These are supported by 2 enabling horizontals of Urban Environment Analytics, and Complexity Science for Urban Solutions. A total of S$150 million (EUR 97.4 million) has been approved to fund CoT. The funding will be set aside from the S$900 million (EUR 584.7 million) allocated to the Urban Solutions and Sustainability (USS) domain under Research, Innovation and Enterprise 2020 (RIE2020). CoT supports basic research, applied research, and small-scale demonstration projects. The Urban Solutions and Sustainability (USS) domain is one of the four strategic technology domains identified under the Research, Innovation and Enterprise 2020 Plan, and aims to develop a sustainable and livable city through integrated solutions for Singapore and the world. An ongoing research grant call under the CoT which closes in July 2019 is looking for solutions in the areas of Senior Activity & Travel Pattern Analytics, and Activity location choice and spatial interaction modelling.

Figure 9: Cities of Tomorrow R&D Programme Sources: BCA

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◼ Off-site Construction Special Scheme (OCSS) – The OCSS aims to lower the cost of hiring workers for productive technologies like those under the DfMA. Under this scheme, construction companies can hire workers at a lower levy at 15 DfMA facilities in the country, which could save them between S$ 250 (EUR 162) to S$ 300 (EUR 195) per worker on levies. The OCSS will be launched in the second half of 2019.

◼ In January 2019, the Singaporean government allocated a S$ 72 million (EUR 46.7 million) training fund to help the building industry move away from its labour-intensive methods to more “smart” processes. The funds will go to boosting skills in the building sector, including financing existing scholarships and sponsorship programmes for students and adults. The fund is expected to benefit 118,000 locals working in the construction industry as well as architects and facility managers.

◼ The Asia-Singapore Infrastructure Roundtable series is one of the premier platforms for dialogue between government leaders, policy makers, investors and infrastructure companies on Asian infrastructure projects. It brings together governments and different business across the value chain for an in-depth discussion about the latest trends, challenges, opportunities and outlook for Asia’s infrastructure sector.

◼ Similarly, the Asia Leaders Programme in Infrastructure Excellence (ALPINE) brings together leading executives from the public sector and private firms to share and develop different perspectives through simulation, case studies and project work. Participants, speakers and panellists will gain insights into the various fields of the infrastructure value chain, and widen their professional networks across the sector. In addition, Singapore works closely with multilateral banks such as the World Bank Group and Asian Development Bank to spur infrastructure investment in the region.

Singapore’s construction industry has developed into one which encompasses all aspects of the construction value chain, from design to construction to maintenance, as well as financing & risk management institutions, consultancies and law firms with expertise in building and construction. Singapore has a low barrier of entry for foreign companies and companies can operate in a highly competitive environment. As there are no tariffs, taxes and duties imposed on imports of

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construction-related equipment and building materials to Singapore, the market is open for firms from all countries.

Economic reality demands that the country has world-class winners, with the size, range and expertise to compete both in the country and regionally. A number of global players with strong capabilities in building and construction projects such as Surbana Jurong, AECOM, KTP International, Black & Veatch, Mitsubishi Heavy Industries, CH2M, Meinhardt Group, Mott MacDonald, M+W Zander Facility Engineering, Schneider Electric and WorleyParsons are present in the market.

Overall, the construction demand in Singapore will continue to be sustained by the public sector as more hospitals will be built and new satellite towns are being developed in Jurong, Punggol and Tengah. Amidst the unstable global economic climate, the Singapore construction industry maintains a positive tone with potential for more sustainable work.

3.1.2 Key Organisations and Associations

Building and Construction Authority (BCA)

The Building and Construction Authority (BCA) is a statutory board under the Ministry of National Development of the Singapore Government. It was established on 1 April 1999 through the merger of the Construction Industry Development Board and the Building Control Division of the former Public Works Department. The primary role of BCA is to develop and regulate Singapore's building and construction industry.

The BCA champions the development of an excellent built environment for Singapore. Its mission is to shape a safe, high quality, sustainable and friendly built environment. BCA has undertaken a number of initiatives to lead Singapore’s building and construction industry. Some of these include:

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◼ Administering Singapore’s building rating system to evaluate a building’s environmental impact and its sustainability performance, as well as recognising building owners and developers who adopt practices that are environmentally conscious and socially responsible;

◼ Provide early information on aggregate levels of supply, demand and output to enable the construction industry to make relevant investment decisions;

◼ Charting Singapore’s strategic direction by formulating industry transformation maps, such as Singapore’s Green Building Master Plan, the Smart Nation Programme, the Research & Development Roadmap to improve productivity in the construction sector, etc.;

◼ Identifying best practices, new knowledge, processes and technology areas and working closely with its industry partners to develop skills and expertise in these areas;

◼ Advocating the use of game-changing technologies such as Design for Manufacturing and Assembly (DfMA), Building Information Modelling (BIM) and Virtual Design & Construction, among others;

◼ Administering various grants and assistance schemes for training and upgrading of skills in the construction sector.

Singapore Renovation Contractors and Material Suppliers Association (RCMA)

The Singapore Renovation Contractors and Material Suppliers Association (or RCMA) is a non-profit organisation dedicated to promoting the industry and improving the quality and standards of the construction and materials supply sector in Singapore.

One of RCMA’s most important activities involves engaging various Singaporean statutory boards, such as the Housing Development Board (HDB) and the Urban Redevelopment Authority (URA) in dialogue sessions. These dialogue sessions serve to provide feedback on the state of the industry in the country, highlight concerns which affect the interior construction industry in particular, and formulate minimum standards and guidelines for all licensed contractors. Many of the RCMA-led initiatives have become Parliament-approved legislation. For its members, RCMA also organises a wealth of activities aimed to engage and share information. Networking sessions

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and informal get-togethers are held at least once a quarter while seminars and training courses are available for the education of interested members. In particular, RCMA holds seminars when new legislation concerning the industry is introduced.

Singapore Contractors Association Limited (SCAL)

The Singapore Contractors Association Limited (SCAL), formerly known as The Singapore Chinese Contractors Association, was founded in 1937 with the objective of bringing about harmonious business relationships among local contractors and to ensure regular supplies of building materials. SCAL today has expanded its reach by building bridges of cooperation with various regional and international bodies with similar goals and objectives. This has resulted in fellowship and collaboration amongst contractors in Singapore and their counterparts while facilitating exchange of technology, information and business opportunities. In Singapore, as a voice of the construction industry, SCAL is represented in all important policy making committees of 21 professional and government bodies.

3.1.3 Entry Strategies

Despite the slowdown of the construction sector in Singapore in recent years, the country remains an interesting market for aspiring European Construction & Building Technology companies, due to its receptivity to newer technologies that can help improve productivity and efficiency, as well as its proximity to the fast-growing markets in South East Asia. Prior to establishing a direct presence in Singapore, European Construction & Building Technology companies may enter the Singapore market through:

◼ Partnerships

◼ Joint ventures

◼ Tendering opportunities

◼ Tradeshow participation

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Partnerships

Given the strong emphasis on energy-saving and eco-friendly solutions in the local construction sector, Singaporean companies are very receptive to partnering with foreign players that have innovative, customised and cost-effective technology solutions that can be translated into effective and sustainable solutions for the construction sector.

Many Singaporean companies have accumulated a wealth of experience in doing business in the region and have built a wide distribution network covering the neighbouring countries of South East Asia, and further afield to include India and China. This is an added benefit for EU companies in the Construction & Building Technology sector, which are attracted by the huge potential of the market.

Joint Ventures

Foreign companies operating in Singapore are not required to take on joint venture partners except in the few restricted industries which are financial services, professional services, and media. Despite this, European Construction & Building Technology companies may find it advantageous to enter joint ventures as this can expand distribution capacity, and local service providers can assist with providing after-sales repair and maintenance services. This may also be a popular option for European companies seeking to gauge their product or service’s potential in the wider South East Asian market. Many of the international brands available in the region also establish their regional headquarters in the country due to its favourable business environment and excellent infrastructure.

Tendering Opportunities

European Construction & Building Technology companies can sell their products in Singapore through direct submission of tenders to local government agencies. Foreign companies are usually allowed to bid for tenders, but if this is not the case it will be clearly stated. All government tenders can be found on www.gebiz.com.sg. Government procurement tenders vary and range from simple purchases of construction equipment, to consulting services for complex projects. Chapter 4.4 has detailed information on public tenders.

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Tradeshows

BuildTech Asia showcases the latest products, services, smart solutions and technology innovation across the entire building life-cycle through the 6 exhibit profiles such as onsite construction machinery & equipment, building materials & solutions, architectural & quality finishes, productive technologies, facilities management, and infrastructure products and services. This is a one-stop platform where over 300 international and regional brands will gather to engage with the key industry stakeholders across the regional Built Environment value-chain including smart solutions and construction technologies. BuildTech Asia 2019 will run from 5-7 November, 2019 and will be held at the Singapore Expo Convention and Exhibition Centre.

The International Built Environment Week (IBEW) is a new flagship event in the region for industry leaders and renowned professionals from the global built environment industry to exchange ideas and experiences on policies, business solutions and technologies, as well as explore business opportunities. Jointly organised by the Building and Construction Authority (BCA) and Reed Exhibitions Singapore, and supported by 12 Trade Associations and Chambers, the first IBEW will be held from September 4th to 6th, 2019 at the Sands Expo & Convention Centre. Four trade shows will be co-located with IBEW 2019 – Build Eco Xpo Asia (BEX Asia), Mostra Convegno Expocomfort Asia (MCE Asia), Innobuild Asia and Smart Cities & Buildings Asia (SCB Asia). These will feature a host of innovative products and solutions tailored for the diverse needs of the region’s-built environment.

3.1.4 Challenges & Entry Barriers

Singapore is a potential market to be considered by European Construction and Building Technologies companies seeking opportunities in the South East Asia region. The country has a world-class infrastructure, skilled labour force, a supportive government, and it is set to benefit

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from the process of integration among ASEAN members, being a global hub for financial services and a high-tech centre. Furthermore, Singapore is a relatively open market economy, and it is less challenging to set up a business and operate in the country than in other markets within the region. However, European companies should keep in mind that some challenges are present as well. The key challenges are the relatively small size of the market, the dominance of multinational corporations, the country’s tight labour market, as well as the higher cost of operating a business, relative to the other ASEAN markets.

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3.2 Construction Machinery

3.2.1 Market Overview

Singapore is a key hub for re-export of heavy equipment for use in the construction sector, which explains the high levels of imports of construction machinery relative to the size of the building and construction sector in the country.

HS Definitions Import Value Export Value Code in 2018 (US$) in 2018 (US$) 8429 Self-propelled bulldozers, angledozers, graders, 243,595,000 200,708,000 levellers, scrapers, mechanical shovels, excavators, shovel loaders, tamping machines and road rollers 8430 Moving, grading, levelling, scraping, excavating, 235,849,000 1,085,735,000 tamping, compacting, extracting or boring machinery, for earth, minerals or ores; pile-drivers and pile-extractors; snowploughs and snowblowers (excluding those mounted on railway wagons, motor vehicle chassis or lorries, self-propelled machinery of heading 8429, lifting, handling, loading or unloading machinery of heading 8425 to 8428 and hand-operated tools) 8474 Machinery for sorting, screening, separating, 112,032,000 85,886,000 washing, crushing, grinding, mixing or kneading earth, stone, ores or other mineral substances, in solid, incl. powder or paste, form; machinery for agglomerating, shaping or moulding solid mineral fuels, ceramic paste, unhardened cements, plastering materials or other mineral products in powder or paste form; machines for forming foundry moulds of sand; parts thereof Table 3: Value of Imports of Construction Machinery Source: ITC Trade Map

With no duties on imports, the Singaporean market is very open, and many foreign companies involved in construction machinery are already well-established in the country. As a result, pricing can be very competitive in the market.

Construction machinery from Japan is highly regarded in Singapore’s construction and earthmoving equipment market. Japanese brands such as Kobelcom Nikko and Mitsubishi are popular in the country. On the other hand, American brands like Caterpillar and its main

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competitor Komatsu from Japan dominate in the bulldozer category. The market for excavators and tractors in Singapore is very competitive with a large number of manufacturers such as Bomag from Germany and Sakai from Japan, competing in the country.

The ASEAN region has a strong demand for heavy machinery with approximately US$ 4.9 trillion (EUR 4.4 trillion) worth of projects. According to Reciprocus, exports of heavy machinery from Singapore to the rest of the ASEAN region have grown steadily at a CAGR of 7.0%, led by the investment in construction projects in ASEAN.19 In 2018, Singapore’s imports of machinery for construction were valued at around US$ 592 million (EUR 528 million), while exports of construction equipment reached US$ 682 million (EUR 608 million).

Considering imports of construction machinery in 2018, Singapore’s largest trading partners were, by far, China, Japan, and Germany. These 3 countries alone supplied construction machinery worth more than US$ 280 million to Singapore. In the same year, Italy and the United Kingdom were also among the top 10 trading partners for building equipment, while Austria, the Netherlands and France followed in 12th, 13th and 14th position, respectively.

Rank Partner HS Codes 8429, 8430, 8474: Export Trade Value (US$) 1 China 140,083,000 2 Japan 75,784,000 3 Germany 65,499.000 4 Rep. of Korea 58,358,000 5 USA 42,558,000 6 Indonesia 38,692,000 7 Italy 26,388,000 8 Malaysia 22,116,000 9 Thailand 21,755,000 10 United Kingdom 19,218,000 11 India 15,688,000 12 Austria 14,264,000 13 Netherlands 12,766,000 14 France 8,895,000 15 Australia 7,776,000 Table 4: Largest Trading Partners for Export of Construction Machinery to Singapore in 2018 Source: ITC Trade Map

19 Project Heavy Machinery, 2017, Reciprocus International

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Key export destinations for Singapore are the ASEAN markets, namely Malaysia and Thailand, highlighting the importance of Singapore as a regional hub for the supply of construction machinery. The demand for construction machinery in Singapore is expected to remain strong, as it is closely allied to the growing real estate market and the expansion of public and private infrastructure in South East Asia.

Foreign companies also make Singapore its regional headquarters in South East Asia to tap into opportunities that are present in other emerging markets in the region. For example, German equipment manufacturer Wacker Neuson partnered with MHE-Demag, which is the material handling arm of Jebsen & Jebsen (SEA), based in Singapore, to expand its presence in the Philippines by launching compact construction equipment including tracked excavators, mobile (wheeled) excavators, tele handlers, wheel loaders and wheel dumpers.

In Singapore, the buyers of construction and earthmoving equipment are mainly construction companies and civil engineering contractors as well as construction equipment rental companies. Due to the capital-intensive nature of the construction industry, most operators tend to rent construction equipment instead of purchasing them.

Many exporters use agents or distributors to serve the Singapore market as well as other markets in South East Asia. Typically, Singapore companies are aggressive in representing new products and responds positively to new opportunities. Singapore companies are also open to joint venture and manufacturing under licence. However, exporters should be aware that competition is strong in Singapore and the key selling points in the market are price, quality and service. Buyers usually expect that they will be provided with after-sales services after their purchase.

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Figure 10: A Shotcrete Pumps at a Construction Site Source: BCA

Within Singapore itself, demand for heavy construction machinery is expected to remain stable, supported by the flow of public sector projects. Local construction companies now look to purchase safer, more productive and technologically-advanced equipment, and are able to tap into BCA’s Mechanisation Credit (MechC) scheme to defray the cost to mechanise. Examples of Singaporean companies that have benefited from MechC are:

◼ Singapore-based SME Yes Construction Pte Ltd, which specialises in concrete works and plant construction. With the support of MechC, Yes Construction purchased a telescopic handler and two scissor lifts to tackle the challenges in plant construction. Coupled with a boom extension, the telescopic handler can traverse areas that were previously inaccessible by conventional means. In fact, it doubles as a means of transport for transporting construction materials on site.

◼ Local structural steel and architectural steel-finishing work specialist Lai Yew Seng Pte Ltd acquired a Computer Numerically Control (CNC) gas- and plasma-cutting machine for its steel fabrication works. With the new CNC machine, Lai Yew Seng reduced the traditional cutting process from four man-days to just one man-day.

According to the National Research Foundation Singapore, more than 280,000 new residential units will be built in Singapore in the coming years and yet there is a limited supply of skilled

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workers to carry out labour-intensive tiling works. To address this problem, researchers from Future Cities Laboratory (FCL), together with industry partner ROB Technologies, have developed a prototype of a robotic tiling machine for automated floor tiling. The robotic tiling machine can lay tiles two to three times faster than a human worker while maintaining high precision and consistent quality. The robotic tiling machine can help to achieve a four-fold increase in tiling productivity as robots can work 24/7. It can also reduce the demand for manual labour and lower the risk of worksite accidents. This technology has great potential for implementation in Singapore per the Ministry of National Development as over 40 million tiles are laid in new construction projects each year.

Figure 11: Robotic Tiling Machine Source: National Research Foundation Singapore

In the area of building inspection, JTC has co-developed a quality assessment and inspection robot named QuicaBot, with NTU. The Quicabot is designed to perform autonomous inspections of common building defects. Its features include:

◼ Easy Access to Inspection Data – stored in the cloud for easy retrieval by builders and developers.

◼ Autonomous and High Accuracy – its autonomous navigation, mapping and scanning capabilities ensure precise and accurate detection of defects.

◼ Time Savings and Higher Productivity – it is two times faster than manual inspection, thus enhances productivity in inspections of units with large gross floor areas.

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Figure 12: QuicaBot Source: BCA

Another robot that JTC has co-developed with NTU is the PictoBot, a spray-painting robot with the following features:

◼ Improves Workers’ Safety – 13 metres high jack-up platform eliminates work-at-height risks

◼ Reliable Paint Consistency – in-situ scanning and precise movement of spray-gun ensures high quality

◼ Time & Manpower Savings – autonomous painting with a six-axis robotic arm and computerised spray paint trajectory makes it four times faster than brushing or rolling.

Figure 13: Pictobot Source: BCA

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Building and construction company Gammon Pte Ltd has proposed an alternative method of sleeper replacement by using a special equipment called the Road Rail Vehicle (RRV). This was developed to solve the common problem during boring operations which is the dislodging of the boring tools such as augur, boring bucket, core barrel, cleaning bucket from Kelly bar into deep bored holes.

Figure 14: Road Rail Vehicle Source: BCA

Gammon also pioneered the use of Zero G mechanical arm that enables tools to be mounted to any supporting frames. This allows tools, parts and other payloads to be manoeuvred as if weightless. There is complete freedom of motion which provides its users with a level of performance that is unmatched by crane-based systems, torque arms and tool balancers. By eliminating the strain and fatigue associated with repetitive tasks and making tools effectively weightless, Zero G technology can significantly boost productivity, reduce injury costs, and improve quality.

Figure 15: Zero G Technology Source: BCA

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Other examples of the new types of machinery include automated concreting machines, automated pallet stackers, shotcrete pumps (which eliminates the need for onsite materials storage and mixing), piling machines with GNSS systems (that enable the machine operator to identify the exact locations for pegging with a high rate of precision and accuracy), etc.

HVAC Systems

In tropical Singapore where air conditioning remains the biggest load on building energy requirements, small percentage improvements in HVAC efficiency and building envelope effectiveness can translate to significant cost savings.20 The rapid growth in the residential, commercial, and industrial building sectors have heightened the demand for energy efficient HVAC systems in Singapore, where it is mandatory for building owners to submit periodic energy audits to ensure that a building’s cooling system operates efficiently throughout its lifespan. It is worth noting that Singapore has one of the most stringent Measurement and Verification and chiller plant efficiency regimes in the world. Singapore is thus closely following advances in HVAC technology, including related monitoring systems, intelligent technologies, the integration of the Internet of Things (IoT), as well as focusing on R&D in this area. Great attention is paid by government agencies such as BCA and research institutes, to even small innovations in HVAC equipment, such as air-conditioning fabric ducts and flexible piping.

The country is exploring other unique ways to cool buildings. CapitaGreen, jointly developed by Capitaland, Capitaland Commercial Trust and Mitsubishi Estate Asia, is a 40-storey high-rise office development located in close proximity to Marina Bay. The development features a 45-metre high petal-like structure called the “wind funnel” that acts as a wind scoop to draw in the cooler, cleaner air from above and channel it via an inner duct to supply fresh cool air to the air-conditioning system.

20 Singapore as a green building hub, Solidiance

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Figure 16: The Wind Funnel above Capita Green Source: Struts Building Technology

In September 2016, the BCA launched a pilot project for a portal to give building owners and managers the means to be proactive in operating their chillers as smart technology is used to autonomously send out performance summary and alerts when performance deviation is detected. They would also have online access to the portal to view their portfolio of buildings and compare trended data. Following a two-year pilot on 20 commercial and institutional buildings, the portal is now open to all Green Mark buildings. 21

According to the Building & Construction Authority, U.S. HVAC products from Trane, York and Carrier are among the leading brands in the market. Local mechanical and electrical engineering designs and implementations follow templates from American and European markets.22 In 2018, Thailand was the largest supplier of HVAC systems to Singapore, with imports valued at more than US$ 333 million (EUR 297 million). Other countries such as the U.S., China, Japan and Malaysia were among the most important trading partners for this product. Germany is the largest European partner, exporting products worth close to US$ 115 million (EUR 102.6 million) to Singapore. The U.K., France, Italy, the Netherlands and Switzerland also made it to the top 15.

21 Speech by MOS Zaqy Mohamad at the BCA Breakfast Talk for CEOs, 2018, Ministry of National Development 22 Singapore as a green building hub, Solidiance

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Rank Partner Export Trade Value (US$) 1 Thailand 333,309,000 2 USA 223,596,000 3 China 190,144,000 4 Japan 142,685,000 5 Malaysia 138,079,000 6 Germany 115,377,000 7 Rep. of Korea 42,214,000 8 United Kingdom 41,084,000 9 France 33,297,000 10 Italy 32,963,000 11 Indonesia 23,908,000 12 Mexico 21,457,000 13 Netherlands 17,694,000 14 Taipei, Chinese 16,253,000 15 Switzerland 15,193,000 Table 5: Largest Trading Partners for Imports of HVAC Systems in 2018 Source: ITC Trade Map HS Codes: 8414; 8415; 8416

In 2018, global investment firm KKR announced an investment of S$ 45 million (EUR 29.1 million) in Barghest Building Performance (BBP), a Singapore-based provider of energy savings solutions to HVAC systems in commercial and industrial buildings. BBP’s energy efficiency solution applies a combination of proprietary software, customised engineering, and equipment to deliver the same cooling load to sites while consuming up to 40% less energy. The solution is applicable for all central chiller plant systems, regardless of brand or age. BBP also supports its clients with continuous commissioning technologies and comprehensive asset management services that sustain the level of savings over long periods of time. BBP offers the solution on a yearly subscription based on 3rd party verified energy savings, eliminating the need for upfront investment costs by customers.

There is an increasing focus for cooling technologies in the country and as such, the Cooling Energy Science and Technology Singapore (CoolestSG) Consortium was formed in 2018 to

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develop and accelerate the deployment and commercialisation of cooling technologies for deployment on buildings, data centres and industries.

Local Players

In Singapore, most vendors of construction machinery are companies from Europe, the U.S., and Japan that have established their own facilities in the country or sell their products via local distributors.

Hoe Leong Corporation Ltd trades and distributes an extensive range of equipment parts for both heavy equipment and industrial machinery, including brands such as Caterpillar, Cummins, Hitachi, Hyster, Kato, Kobelco, Komatsu, Mitsubishi, P&H and Sumitomo. The company sells in Singapore and overseas markets including Indonesia, Malaysia, China and emerging markets like the Middle East. The end-users of its products are generally operators of heavy equipment and industrial machinery in the building and infrastructure construction, forestry, marine, mining and plantation industries. The Group provides an integrated one-stop solution to customers with its extensive industry experience, large and varied inventory, and regional sales network that provides easy access to replacement parts.

Sin Heng Heavy Machinery Ltd is a provider of heavy lifting services in Singapore. Its core business activities are the rental and trading of cranes, aerial lifts and other heavy lifting equipment. The company holds regional distributorship rights granted by world renowned crane manufacturers. Sin Heng Heavy Machinery has dealership rights for the sales and distribution of cranes and parts for Kobelco (specialist in Japanese crawler cranes), Kato (specialist in hydraulic cranes) and Grove (specialist in European all terrain cranes). It also supports customers by undertaking turnkey project engineering services as well as the sales and distribution of related equipment parts. Currently the company has an established presence in Singapore, Malaysia, Indonesia, Myanmar and Vietnam through its wholly-owned subsidiaries. It is actively seeking to expand its business reach and network to new geographic regions. The Group’s overseas operations are fully equipped with a comprehensive range of cranes and aerial lifts, and supported by its team of professionals.

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JPN Industrial Trading Pte Ltd, incorporated in 1988 in Singapore, is a well-established and dynamic company specialising in the sale, rental and services (re-conditioning) of new and used construction machinery and equipment, serving the South East Asian region. The company’s Singapore headquarters operate on a spacious 33,000 square-meters facility with waterfront access and housing a purpose-built workshop. The company distributes a wide range of brands including the Japanese Airman and Mikasa. JPN is the exclusive distributor for the Korean Powerking Hydraulic Breakers in Singapore and Malaysia since 2001. To date, over 3,000 units of McWel, the in-house brand of silent diesel generators for JPN McWel, have been sold and are now used in many major construction, oil & gas and marine & off-shore projects both overseas and in Singapore.

G and J Machinery and Trader Pte Ltd was established in 1998 in Singapore. The company is an exporter and importer of new and used construction machinery and spare parts. The company has specialised in the following segments for construction machinery: road rollers; crawler dumpers; side loaders; and telescopic forklifts. In addition, G and J Machinery and Trader has its own workshops to provide repair, servicing and paint work for all kinds of equipment. Among the brands that can be found from the company are TCM, JCB, Manitou and Komatsu.

Lincoln Machinery Pte Ltd was founded in 1976 in Singapore to provide rental and sales of welding machines, generator sets, air compressors and other construction related machineries and tools from international brands. With an equipment fleet of 4,000 items, Lincoln Machinery is recognised as one of the Singaporean leaders in welding products and has rendered service to the marine, petrochemical, pharmaceutical, engineering industry and related construction industries in Singapore and its neighbouring countries. Lincoln Machinery Pte Ltd is also ISO 9001: 2015 certified. Brands distributed by this company include Airman, Nippon, Yanmar, Armstrong, Dancomair, TBi, Profax, Tweco, Thermal Dynamics, Miller, and its own in-house brand Weldman Welder.

Weeseng HVAC Technology Pte Ltd was incorporated in 1994 in Singapore, and is currently a leading manufacturer of industrial water chiller, cooling equipment, heat exchanger process, air dehumidifier, oil cooler and low temperature brine chiller application products. Weeseng is also

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the authorised agent and distributor of Taibong Gasket type plate heat exchangers and Kaori Brazed plate heat exchangers; marine water-cooled condensers and also distributors of various refrigeration components. In addition, the company has attained ISO 9001-2008 Quality certificate in the year 2001. Among the brands the company offers are Danfoss, McQuay, Daikin, Carrier, Tatung, York, Hitachi and Super. Keppel DHCS, established in 1998, is the first and largest District Cooling Systems (DCS) developer and service provider in Singapore, providing DCS services through the development and operation of such systems at major business and industrial parks in Singapore, including Changi Business Park, one-north and Woodlands Wafer Fab Park, with a combined plant capacity exceeding 65,000 refrigeration tonnes.

In 2010, the Keppel Corporation’s subsidiary made its first foray into China to provide district heating and cooling systems services in the Eco-Business Park of the Sino-Singapore Tianjin Eco-City. The plant incorporates geothermal technology to support its heating and cooling requirements and commenced commercial operations in August 2013. Keppel DHCS was recognised at the Energy Efficiency National Partnership Awards 2015 for its contribution towards saving energy. The company received an award in the 'Excellence in Energy Management' category. The Energy Efficiency National Partnership Awards is organised by the National Environment Agency, the Economic Development Board and the Energy Market Authority to foster a culture of sustained energy efficiency improvement in industry.

3.2.2 EU Entry Opportunities

◼ The Singaporean government is promoting the adoption of labour-saving technologies in the construction sector, creating market opportunities for European companies with expertise in this area. In 2010, the Singaporean government set a target to improve construction productivity by 2% to 3% annually until 2020. Construction site productivity in Singapore, measured in terms of square meters of constructed floor area per site worker man-day improved from 0.381 in 2010 to 0.438 in 2018, an increase of 15% over a period of 8 years or an average annual rise of 1.8%23. As manpower remains a key constraint and reduction of

23 Project Productivity, Building and Construction Authority of Singapore

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reliance on foreign workers in the long run becomes a policy focus, Singapore continues to strive for further improvement in productivity.24 Better technologies and project management processes have been identified as avenues to be improved in enhancing construction site productivity.25 As mentioned previously, in March 2019, the Productivity Innovation Project was topped up with S$ 295 million (EUR 191 million) to support firms that adopt solutions offering at least 30% productivity improvement, while an additional S$ 95 million (EUR 61.6 million) was allocated for the Public Sector Construction Productivity Fund, to support public sector projects adopt DfMA technologies.

◼ The Building and Construction Authority has developed a new construction and productivity research and development road map. The BCA has identified key technology areas for construction machinery.26 There are opportunities for European companies producing construction equipment for offsite building, automated equipment, and technologies that provide information needed by contractors for building modelling. Moreover, the BCA is also promoting the adoption of new-generation technologies such as construction robots and 3D printing machines that can be brought on-site. In addition, the BCA has been aggressive in providing incentive schemes and grants to local contractors and construction companies to adopt and use new technologies and construction equipment to improve their productivity and help them mechanise. Such scheme includes the Productivity Improvement Project and MechC, which can defray the cost of technology adoption up to 50%.

◼ There is an increasing demand for sophisticated construction machines. In its 2017 budget, the Singaporean government announced a S$ 150 million (EUR 97.2 million) Public Sector Construction Productivity Fund for government agencies to procure expensive new technology or equipment for use by construction firms.27 The fund aims at allowing these new solutions, which may have higher costs as they are at a nascent stage or lacking in scale, to enter and gain traction in the market. By March 2018, the fund had supported 22 projects amounting to over S$ 60 million (EUR 39 million). An example of a project which received partial funding

24 Singapore Government to Step Up Construction Productivity, 2016, The Straits Times 25 Raising construction sector productivity - with an app, 2016, Channel NewsAsia 26 Singapore Government to Step Up Construction Productivity, 2016, The Straits Times 27 Singapore Budget 2017: 7 measures that stood out for companies, The Straits Times

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from the Public Sector Construction Productivity Fund is the Tahir Foundation Connexion building at the Singapore Management University. The S$ 70 million (EUR 45 million) building opened in August 2018, is the city centre’s first large-scale Mass Engineered Timber (MET) development and also a Net Zero Energy Building. It is designed to meet the BCA Green Mark Platinum certification and the international WELL Building Standard.

◼ The BCA is seeking to improve energy efficiency of HVAC systems in buildings, creating R&D opportunities for European companies. The BCA has awarded S$ 6 million (EUR 3.9 million) to research projects aimed at improving the energy efficiency of air- conditioning and mechanical ventilation systems in buildings. One of the projects granted the National Development's Research and Development Award, under BCA’s Energy Innovation Research Programme, was a system that could reduce energy needed by air-conditioners by up to 35%. In the prototype, air is passed through membranes, where moisture is removed. The device also passes the air through a water-based cooling system that does not contain chemicals harmful to the environment.

◼ European companies with innovative energy-efficient HVAC solutions will find a receptive market in Singapore. For example, a local company that is heeding the government’s call for more energy-efficient cooling systems is Ecoline Solar Pte Ltd. It has created a hybrid: a conventional electrical compression machine that uses heat from the sun to help the energy- guzzling compressor. The company has installed more than 1,000 air-conditioning units in 6 countries. Its clients in Singapore include NCS (IT subsidiary of local leading telco, Singtel), Nanyang Technological University, ASM Pacific, Singapore American School and Mt. Alvernia Hospital. According to Ecoline, its air conditioner delivers 35% energy savings compared with a standard high-efficiency air conditioner. Although the hybrid systems cost 15% more to install, it is cheaper to run and costs can be recouped in 2 years, based on electricity prices in Singapore. It is the only unitary air conditioning system certified by Singapore Green Building Council (SGBC) and is eligible for BCA Green Marks for Energy Efficiency.

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European Players

Volvo Construction Equipment

Volvo Construction Equipment is a major international company that manufactures equipment for construction and related industries. It is a subsidiary of the Volvo Group which was founded and headquartered in Sweden.

Singapore is the regional hub of Volvo Construction Equipment for the Asia Pacific region, with an official inauguration in June 2004. In 2007, the Singapore dealership was set up and has grown to become a key player in the local construction equipment industry. Featuring a complete range of machinery, the dealership is equipped to meet the demanding construction requirements of customers in Singapore. A full-fledged aftermarket facility that includes large workshops, washing and painting facilities and stockyards, provides robust service facilities that keep the customers focused on their core business. In Singapore, Volvo Construction sells products such as excavators, asphalt pavers, compactors, wheel loaders, and articulated haulers.

Figure 17: Volvo’s Machines Being Deployed in Singapore Source: Volvo Construction Equipment

Specially-designed versions of the Volvo EC140BLC are being used both in Singapore for works related to the metro rail network, which is set to double from today’s 178 km to 360 km by 2030. The new product weighs 14 tons and features a newly-designed boom and arm. Measuring 3.4 m

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and 1.5 m, the boom and arm are shorter by 1.2 m and 1 m respectively than the standard EC140BLC. This gives the EC140BLC basement machine the ability to optimally operate in tunnels of four meters in height.

Established in 1972, MHE-Demag is a joint venture between Singapore's Jebsen & Jessen (South East Asia) and Germany's Demag Cranes & Components GmbH (Terex MHPS GmbH). The company manufactures and services material handling products including cranes, hoists, explosion proof lifting equipment, warehouse trucks, dock levellers, rail systems, car park systems, electrification systems and building maintenance units. With growth over the years, MHE-Demag presently has a workforce of 1,600. MHE-Demag operates within a regional network including Singapore, Malaysia, Thailand, Indonesia, the Philippines, Vietnam, Taiwan and Australia, and the company is supported by 11 manufacturing facilities and over 60 strategically located branches in the region.

From Singapore, the company is currently expanding and strengthening its position in the region. In January 2017, MHE-Demag opened its largest manufacturing and warehouse facility in Bukit Raja, Malaysia. Developed at a cost of EUR 9.5 million, the facility can operate at a capacity of 200,000 production hours a year, a 54% increase from the previous site. The facility is also expected to support the fabricated metal products and machinery & equipment industries; two key areas that have been identified as drivers for the manufacturing sector to attain its projected growth of 5.1% per annum. With a built-up area of close to 15,000 sq. meters sitting on over 26,000 sq. meters of land, the plant is also the largest and first-of-its kind crane manufacturing facility in Malaysia and the region.28

CNH Industrial

CNH Industrial is one of the world's largest construction equipment companies, registered in the Netherlands with headquarters in the UK. It is financially controlled by Exor, an Italian investment

28 MHE-Demag opens Southeast Asia’s largest crane manufacturing plant, 2017, Logistics Insight Asia

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company. CNH Industrial currently employs over 64,000 people in 180 countries around the world. It operates with 64 manufacturing plants and 50 centres for research and development.

CNH has been distributing its products in Asia via Kobelco Construction Machinery since January 2002. After a 10-year alliance, CNH Industrial announced that it is ready to directly resume marketing and distributing its construction equipment brands in South East Asia and Taiwan through an affiliate CNH Industrial. Through its established networks of 20 dealers and over 160 outlets, CNH Industrial will offer the full Case Construction Equipment and New Holland Construction light and heavy equipment lines in these countries.

In the same year, CNH announced the opening of a new Regional Hub in Singapore, whose goal is to provide services and support, creating a strong local presence for the company's construction equipment business in South East Asia and Taiwan. The approach has not only brought the equipment closer to the market, but also allowed the company to market the equipment directly in the region after 10 years. CNH industrial sells heavy construction equipment such as excavators, tractors, and cranes.

Climatex Group

Climatex Group is a Franco-Spanish company with offices in France, Singapore and Spain. The company specialises in the fields of refrigeration, heating and air-conditioning, plumbing networks and maintenance. From engineering to work execution, the company is capable of providing complete solutions within the industrial, building and marine sectors. It puts forward technologies such as CO2 heat pumps where businesses benefit from significant energy savings. It has undertaken numerous projects in Singapore that include providing energy performance analysis of various compressor packages used for chiller, freezer rooms and processing areas. It has also provided design and tender management and performance evaluation to refrigerated warehouses. Its clients in Singapore include the Sheraton Towers Hotel, SATS, Jurong Cold Storage and OJJ Foods Pte Ltd. The company has also done HVAC related projects and audits in other Asian countries like Malaysia, Indonesia, Vietnam and Myanmar.

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OBO Bettermann

Germany’s OBO Bettermann is a leading provider of high-quality products, solutions and services for all areas of electrical fittings. OBO’s patented Magic cable tray is characterised by the innovative Snap-On connection method which allows saving in the area of time as well as electrical energy used (from tightening bolts and nuts). A total of 17 km worth of such products was installed in the German European School of Singapore. OBO currently had four distributors in Singapore.

Its other clients in Singapore include Exxon Mobile, MRT LTA, Philipps Singapore, Mandarin Orchard Hotel, RWS Casino, GESS Campus and Gardens by the Bay. The company has also undertaken projects in Malaysia, Indonesia, Vietnam, Thailand and the Philippines.

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3.3 Building Materials and Building Installation

3.3.1 Market Overview

Singapore is developing its capabilities to Design for Manufacturing Assembly (DfMA) and in Prefabricated Prefinished Volumetric Construction (PPVC). In line with this, there is a shift in interest from traditional building materials to newer products such as Mass Engineered Timber (MET), structural steel systems, and advanced prefabricated and precast components such as precast-steel hybrid, prefabricated cages (precages), precast hollow core slabs, etc.

According to the Building & Construction Authority (BCA), Singapore’s DfMA adoption rate currently stands at 10%. Early DfMA adopters have had success in Singapore. The first few PPVC projects in Singapore were the Crowne Plaza Changi Airport Hotel Extension and three new residential halls at Nanyang Technological University (NTU). Crowne Plaza achieved on-site manpower savings of 44% while NTU’s student halls reduced on-site manpower by 24%. NTU also completed their new sports hall using Mass Engineered Timber with significant time and manpower savings.

Some interesting developments in the sub-sector include:

◼ Construction company JTC Corporation adopted productive construction materials by pioneering the use of engineered wood like CLT and Glulam for its Block 81 project. By using these materials, overall project time was reduced and manpower saving was also achieved, while there was also reduction of noise and dust generated by the construction project, thus minimising the impact on the community.

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Figure 18: SMU School of Law Source: BCA

◼ Meinhardt, Asia’s largest independent engineering consultancy firm headquartered in Singapore, led the construction of the SMU School of Law that employed the use of multi- storey transfer steel trusses over the 1,400-seater column-free basement function hall instead of the conventional reinforced concrete transfer structures. The use of steel structures, which were prefabricated offsite, greatly enhanced construction productivity and overall efficiency. The design and adoption of robust top-down construction with minimal struts effectively controlled ground movements, enhanced site safety and improved productivity.

◼ Kimly Construction, one of the more progressive construction companies in Singapore, initiated the use of Mobil Batter Mould (MBM) which it procured from Germany in 2014 to improve its productivity of on-site precasting. The MBM alleviated space and logistical constraints on site and facilitated the setting up of an on-site precast and storage yard.

◼ Gammon Construction pioneered the use of carpet reinforcement in Singapore. Carpet reinforcement is a prefabricated roll of steel reinforcement bars bound together by steel wires. This roll of reinforcement bars is then rolled up to form a carpet reinforcement bundle.

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In addition, Gammon also pioneered the use of the Concrete Canvas in Singapore. Concrete Canvas is a flexible concrete impregnated fabric that hardens when hydrated to form a thin, durable, waterproof and fire-resistant concrete layer. The system is used for the slope protection in temporary retaining works.

◼ After years of using copper and propylene random copolymer (PP-R) piping, OSK Engineering Pte Ltd (OSK) discovered a new piping material that could revolutionise the plumbing industry. OSK discovered cross-linked polyethylene (PEX), a new flexible pipe material that halves the installation time of plumbing pipes. Requiring only simple tools, the PEX-piping system not only uses fewer joints, but also removes the difficult pipe-fusing process through a press-fit jointing system that eliminates the need for skilled labour. With the new PEX-plumbing system, OSK has experienced a dramatic improvement on two fronts: labour costs and installation time. OSK Engineering Pte Ltd estimates a 50% increase in productivity after switching to PEX piping.

◼ City Developments Limited has also been using innovative technologies such as labour- efficient dry wall instead of the conventional brick wall. The company has also stopped the use of scaffolds for external wall construction and struts for basement construction since 2003 in favour of system formworks and precast external walls. In areas where precasting is not possible, the company is looking into ways to use less concrete and speed up the entire concreting process.

While the BCA is urging developers, designers, builders and suppliers to assume responsibility to develop systems, products and methods that are green and energy-efficient,29 the local industry is highly cost sensitive and building materials manufacturers do find some challenges to market greener materials, which come with a higher price tag.

To encourage the industry and to address the shortage of labour, the government announced that it will create sustained lead demand for DfMA technologies and products for public projects. For the private sector, more Government Land Sales sites have stipulated the adoption of DfMA technologies, which has resulted in a DfMA adoption rate of about 10% in Singapore.

29 Sustainable Construction, Recycled Materials for Construction, BCA

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The Singaporean Government, through BCA, revised the tender evaluation framework for government construction projects, raising the productivity weightage to 10% of the overall score starting January 2016. BCA also launched S$ 2.6 million (EUR 1.7 million) funding for research programmes on construction productivity in October 2015 and committed to providing additional funding for Virtual Design and Construction (VDC) under the Construction Productivity and Capability Fund (CPCF) to encourage the adoption of more game-changing technology. As of June 2017, S$ 25 million had been provided for BIM/ VDC, funding up to 70% of the cost for hardware, software, training cost, and consultancy.

In 2014, the BCA led 30 delegates from both government agencies and industry firms on a 5-day learning visit to learn about new technologies in Italy and the UK. This learning trip was organised to widen the exposure of industry stakeholders to impactful construction technologies, specifically PPVC and PBU technologies. In 2016, a joint BCA-industry team of delegates went on a prefab Mechanical, Electrical, and Plumbing (MEP) overseas learning journey to the United Kingdom, while in February 2017 BCA organised a working trip to the Netherlands and Germany on Manufacturing Equipment for Prefabricated Prefinished Volumetric Construction (PPVC).

Traditional building materials in Singapore consist of predominantly ready mixed concrete, steel bars, granite, concreting sand and cement. The Singapore construction materials market is forecasted to reach a value of S$ 1.553 billion (EUR 1 billion) by the end of 2020.30 In terms of volumes of materials, total consumption of ready mixed concrete stood at 12 million cubic metres in 2018, 9.7% lower than the previous year. Total consumption of steel rebars declined by 3.3% to 1.4 million tonnes in 2018. These declines were in line with moderation in on-site construction activities during the year.31

BCA’s Green Mark Scheme, a green building rating system to evaluate a building for its environmental impact and performance, has recently been expanded to include and promote green construction materials.32 The move will likely affect construction materials such as green

30 Construction Materials in Singapore, 2017, Live-PR 31 Economic Survey of Singapore 2018, 2019, Ministry of Trade and Industry 32 Singapore: Green Mark to take green construction materials into consideration, 2014, Asia Green Buildings

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concrete, recycled concrete aggregates and steel. The scheme will soon consider the basic carbon footprint during the import of key components and systems of buildings, according to the Minister of State for National Development, Desmond Lee, noting that building sustainable green buildings goes beyond resource-efficient building designs and also includes the use of environmentally-responsible construction material and methods.

According to Pan United, Singapore’s largest supplier of ready-mixed concrete and cement, the country is experiencing increased demand for high specification concrete solutions for meeting the needs of the public sector and private developers alike Singapore’s

Eco-concrete is an example of a new green material Singapore has developed. Eco-concrete is concrete produced using substitutes for natural aggregates and natural sand. In Singapore, eco- concrete prototypes have been developed by a French-Swiss ready-mix concrete supply company, LafargeHolcim, recycling aggregates from demolition waste to replace 100% of the natural coarse aggregates while substituting 70% of the natural sand component with washed copper slag. The company is now working with HDB on a pilot study that involves the casting of a non-structural slab sample at one of HDB’s Interim Upgrading Projects at Simei to demonstrate that Eco-concrete performance matches that of conventional concrete in terms of strength and durability.

Singapore imports the bulk of its construction materials33 from neighbouring countries, especially Malaysia. The local market is price-sensitive, and proximity allows saving on time and cost. Singaporean exports of construction materials are just a fraction of its imports. Some of the main materials used in the local construction industry in the country are:34

◼ Earths and stone, plastering materials, lime and cement. In 2018 Singapore’s imports amounted to US$ 886.5 million (EUR 790.7 million), whereas the country exports were valued at just US$ 67.2 million (EUR 60 million). Asian countries are the main suppliers, and the largest are Malaysia, Japan, and China.

33 Singapore Construction Industry Overview, HKEX News 34 For detailed trade data please refer to the chapter 5.3

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◼ Wood and articles of wood. Similar to other construction materials, Singaporean imports of wood outsize the country’s exports. Countries with extended forests such as Malaysia, China, and Indonesia are responsible for the bulk of Singapore’s imports valued at US$ 421.9 million (EUR 376.3 million). In 2018, Germany and Italy were among the top 10 suppliers of wood and articles of wood to Singapore having an export value of US$ 7.2 million (EUR 6.4 million) and US$ 5.1 million (EUR 4.5 million), respectively.

◼ Articles of stone, plaster, cement, asbestos, mica or similar. For these commodities, Malaysia was responsible for more than half of the value of import flows in 2018. In the same year, Germany and Italy were important suppliers to Singapore, ranking 5th and 7th respectively.

◼ Ceramic products including tiles. In 2018 Singapore’s imported ceramic products reached a total value of US$ 329.3 million (EUR 293.7 million). Italy was the 5th largest trade partner for imports, selling ceramic goods to Singapore valued at US$ 23.1 million (EUR 20.6 million). Other European countries such as Germany and Spain were among the largest suppliers.

◼ In 2018, Singapore imported glass and glassware materials for a total value of US$ 823 million (EUR 734 million), mainly from Asian countries like Vietnam, China, and Malaysia while Germany, Austria and France were the top suppliers from Europe.

◼ Iron and steel. The city-state’s imports of iron and steel in 2018 amounted to US$ 2.9 billion (EUR 2.6 billion) and China was by far the largest supplier. Sweden is an important supplier, selling iron and steel valued at US$ 70.6 million (EUR 63 million) in 2018.

Local Players

Singapore has virtually no production of raw construction materials. Most local companies are distributors or recycle used building components and materials.

Established in 1983, Choo Building Materials Company Private Limited is a major Singaporean distributor of interior and exterior building materials. The company’s wide array of interior and exterior building materials (such as marble, granite, ceramic tiles, porcelain tiles,

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and glass blocks) has been supplied to many construction projects, such as condominiums, shopping malls, commercial and industrial buildings, conservation houses, private homes, and the Housing Development Board flats. Choo Building Materials’ strategic mission is to be a cost-effective leader in the construction industry, and to serve its clients with quality and aesthetically pleasing products.

Meiko is a Singaporean company in the business of supplying modern resilient floors and decorative laminates. By working with world-class manufacturers, the company is able to offer a wide repertoire of styles, design and specifications to meet high demands. The brands represented are namely Floorworks, Floorament, Gerflor, Mirage, Rhino Floors and Tajima. Meiko carries stock of more than 200 colours and designs in vinyl flooring and 400 colours in decorative laminates. With many other styles available on indent basis, the company has a wide range of styles and colours to meet most requirements in designs and price point. Established since 1973, Meiko has offices in both Singapore and Malaysia.

Framework Building Products Pte Ltd is a leading provider of architectural products and services based in Singapore. Established in 1991 in Singapore, the company has progressively expanded in the Asia Pacific region. Building projects such as the Petronas Twin Towers (Kuala Lumpur), RCBC Towers (Manila), Parliament Complex (Jakarta), KK Hospital and the Ministry of Education Building (Singapore) are all examples of projects that have chosen the company’s products. Products distributed include ceilings; partitions; insulations; wood substitutes; fire protection systems; suspended ceilings; and flat ceilings.

Samwoh Group. Samwoh was incorporated in Singapore as a transport and logistics company in 1975. Today, the company has grown into a market leader in construction and maintenance of road, aircraft and seaport pavement. The company is also at the forefront of providing civil engineering, infrastructural construction services, supplying of building materials, offering of specialised blasting systems, recycling of construction and industrial wastes and consultancy services. Samwoh has been investing heavily in green business. The company has two integrated construction waste recovery facilities in Sarimbun Recycling Park. The principal function of these facilities is to recycle demolished concretes and other wastes from the construction industry.

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The recycled aggregates are used in road construction, as well as to replace natural aggregates in concrete. The latest addition to the company's recycling facilities is the Samwoh Eco-Green Park, which consists of the Samwoh Eco-Green building constructed with recycled concrete aggregate, an asphalt recycling plant that can recycle asphalt pavement waste and a ready mixed concrete plant capable of producing Eco-concrete. In 2009 and 2010 the company was awarded the Enterprise 50 Award as Singapore’s most enterprising company.

Pan United develops differentiated concrete offerings in order to meet new and unprecedented requirements in the ever-changing infrastructure landscape. It has also streamlined its business operations by digitalising work processes. Pan United has become a trusted concrete supplier to several large-scale projects by Singaporean developers. These include Palm Heights, the residential component of Keppel Land’s waterfront Palm City township in District 2; Feliz En Vista by CapitaLand at New Urban City in District 2; and OneHub Saigon by Ascendas at High Tech Park in District 9. Furthermore, Pan United has become one of the top concrete companies in Ho Chi Minh City, Vietnam, just six years after its entry into the country. It has also started to supply its own high-grade ground granulated blast furnace slag (GGBFS) to its operations in Singapore and Johor, Malaysia. The company has been busy setting up new offices and batching plants in Selangor and Malacca, to grow and solidify its foothold in Malaysia.

3.3.2 EU Entry Opportunities

The following are the most important eco-friendly construction materials whose use is being promoted in the country, with increasingly important demand.35 European companies offering these materials have good opportunities to enter the market.

◼ Currently, Singapore is focussing on Mass Engineered Timber for construction projects, which is estimated to yield up to 35% manpower savings at the project level in the country, resulting in significant productivity improvement. This technology has been proven to have low energy and water consumption as compared to conventional building materials. There

35 Sustainable Construction, Recycled Materials for Construction, BCA

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are 2 forms of Mass Engineered Timber, namely Cross Laminated Timber (CLT) and Glued Laminated Timber (Glulam).36 37 CLT especially commonly used in Europe, as it meets the same fire safety requirements as concrete and steel. European companies with skills in this area can consider selling their products in the Singaporean market. It should also be noted that Singapore has only very recently allowed the use of Mass Engineered Timber for construction purposes. Before March 2014, the use of timber in Singapore was restricted due to concerns regarding danger of fires in a country with an extremely high population density.38 In August 2018, one of the first large-scale developments in the city using Mass Engineered Timber, the Tahir Foundation Connexion building at the Singapore Management University, was opened. It received funding from the Public Sector Construction Productivity Fund specifically for the usage of Mass Engineered Timber. European companies that specialise in this area will find more opportunities in the area going forward.

◼ European companies offering precast components such as staircases and prefabricated bathrooms will find market space in Singapore. Currently, the country is launching new projects aimed at facilitating the assembly of pre-fabricated components. In the effort to reduce the amount of manpower needed to build precast components, in 2015 Singapore opened the five-storey SEF SpaceHub, an Integrated Construction and Prefabrication Hub (ICPH) capable of producing more than 25 types of components - including columns, beams, planks, walls, facades, staircases, household shelters and prefabricated bathrooms - in a factory setting.39 A total of 10 ICPH tenders are expected to be rolled out by 2020. Five had been awarded by August 2018.40

36 Skilled Builders Project, BCA 37 Construction sector to adopt "game-changing technologies" in Singapore, 2014, The Straits Times 38 Singapore Civil Defence Force, Amendment To Fire Code – Fire Safety Requirements For Engineered Timber Building Construction 39 Better quality control, faster production at SEF SpaceHub, 2015, The Business Times 40 Integrated Construction and Prefabrication Hub, BCA

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Figure 19: ICPHs Allow For More Efficient Use of Land and Highly Mechanised and Automated Systems Source: Channel NewsAsia

◼ European companies offering technologies for the treatment of copper and steel slag will find a growing market in Singapore. In the city-state, copper slag is largely used as abrasive for the removal of rust and marine deposits that have accumulated on ships. Companies like JPL Industries Pte Ltd and Ecowise Solutions Pte Ltd are involved in the treatment of copper slag for re-use. Europan companies that have expertise in this area may consider partnering with local players. Currently, steel slag is supplied by NatSteel Asia, the only steel mill in Singapore, as a by-product of the reinforcement bar production. Road surfacing is one of the main applications for steel slag in Singapore.

Figure 20: Steel Slag is Used in Singapore for Road Surfacing Source: BCA

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◼ Recycled construction and demolition waste. These materials are produced when buildings, engineering works and roads are constructed, renovated or demolished. In Singapore, useful resources are recovered from this waste concrete and recycled. However, for use in structural concrete components, there is difficulty in separating the stone, known as aggregate, from the reinforcement steel and cement. European companies with relevant know-how have the opportunity to establish partnerships in order to improve the quality of materials recycled from construction and demolition waste.

◼ As part of its Built Environment (BE) Robotics Research and Development (R&D) programme41, BCA is looking to use robotics for advancing the degree of automation in Design for Manufacturing and Assembly (DfMA) factories and Integrated Construction Prefabrication Hubs (ICPH). Examples of possible R&D projects include mobile robots that can carry out finishing works like tiling, painting and installation of architectural components within Prefabricated Bathroom Units (PBU) and Prefabricated Prefinished Volumetric Construction (PPVC) modules faster and more accurately. The latest grant call42 under this programme, which closed in January 2019, called for proposals for using robotics for the assembly of PPVC modules as well as the accompanying finishing work, along with the use of mobile robot or drones to carry out inspections of tunnels during the construction phase and verify the integrity of different structural and mechanical components in hard to reach areas.

European Players

KLH Massivholz GmbH

KLH Massivholz GmbH, an Austrian company, pioneered the manufacture of cross-laminated timber after many years of research and development. The company operates internationally and its large-format glued laminated timber elements are used across the world as wall, ceiling and roof elements in structural timber construction. KLH Massivholz GmbH is fully owned by Johann Offner Unternehmensgruppe, a traditional family business with a history of more than 250 years.

41 Built Environment (BE) Robotics Research and Development (R&D) programme, BCA 42 Built Environment Robotics R&D Programme Open Grant Call 2018, BCA

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In Singapore, the company is represented by Venturer Pte Ltd, a timber system, design, supply and installation business, which has successful projects across the region.

KLH products have been used in various projects as the use of timber to build superstructures is starting to take off in Asia. Together with Lian Ho Lee Construction, Venturer is currently constructing a Cross Laminated Timber and Glue-laminated Timber 3-storey middle rise industrial building (called the JTC Launchpad @ one-north) using KLH products.

Using 3D BIM (Building Information Modelling) process, Venturer has designed every timber component for the 3,300 m2 structure and received 24 containers of KLH precision-manufactured components. The assembly process has been swift and required a reduced level of manpower over traditional construction methods.

Figure 21: JTC Launchpad@one-north Source: Venturer

CRH plc

CRH plc was formed through a merger in 1970 of two leading Irish public companies, Cement Limited (established in 1936) and Roadstone Limited (1949). The newly-formed group was the sole producer of cement and the principal producer of aggregates, concrete products and asphalt in Ireland. Today CRH provides building materials across the spectrum of the construction

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industry – from building foundations to frame and roofing, to fitting out the interior space and improving the exterior environment, on site works and infrastructural projects.

The Group’s major businesses are in Europe and North America, and it has been growing in Asia. In 2013, CRH announced the official opening of its Asian regional headquarters in Singapore to oversee the expansion of existing interest in India and China and to pursue further development interests in Asia. CRH established its Singapore office to further leverage on the growth opportunities in the region. The company is the second largest cement producer in the Philippines, a burgeoning construction market in South East Asia.

Figure 22: Official Opening of CRH’s Regional Headquarters in Singapore Source: CRH

Peikko Group

The Peikko Group, a specialist in concrete connections and composite structures, was founded in 1965 and is headquartered in Lahti, Finland. It has subsidiaries in 30 countries in Asia-Pacific, Europe, the Middle East and North America, with manufacturing operations in 9 countries. Peikko Singapore was established in February 2014, and is the company’s newest office. Peikko felt that its presence in Singapore was necessary as it already has customers in the market and also because it is one of the most advanced cities in the region.

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The company is also building up partnerships with local suppliers – it is represented by Unifix Singapore, a local company which provides construction and engineering equipment, products and services for various applications, and which is focused on green, sustainable and innovative products geared to changing market requirements. Its project in Singapore is the Lake Grande Condominium, a Prefabricated Prefinished Volumetric Construction where the company provided anchor bolts and wall shoes, which are connecting items designed for tension splices of wall precast elements. Among other applications, wall shoes are used in the stiffening structures of buildings, such as core walls and elevator shafts. The loads are transferred from walls to foundations or other load-bearing structures through wall shoes, anchor bolts and wall reinforcements.

EBAWE Anlagentechnik GmbH

EBAWE, based in Germany, designs, engineers and installs complete production plants for manufacturing precast concrete panels. It develops industrial production plants according to the highest technical requirements and supplies tailor-made solutions.

Straits Construction Group, one of the largest construction companies in Singapore, recently commissioned a carrousel system from EBAWE. Wall and floor panels, including solid slabs, 3D kitchens and bathroom modules were then produced. The first floor houses the entire system of made to measure mesh, while on the second floor, moulds for stationary manufacturing have been accommodated. The bathroom and kitchen modules are finally assembled on the third floor and are then stored on the fourth and last floor. In this environment, a workforce of 60 employees is able to produce precast concrete elements for 48 four-room apartments within 10 days.

HOESCH GmbH

Hoesch Bausysteme is a leading manufacturer in the field of Roof and Wall Cladding Systems (building envelope) and Floor Systems. The company started the production in Germany in the 1960s and in 1965 it developed the first continuous production line of sandwich panels in the world.

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Hoesch Bausysteme set up its headquarter in Singapore located at the German Centre to better serve the South East Asian region. In 2006, Sandvik Southeast Asia Pte Ltd installed the Hoesch Isodach Integral® roof and the Hoesch Isowand Integral® façade for their new Airport Logistics Park in Changi, Singapore. One of the building's green features is the incorporation of a high level thermal insulation to substantially and efficiently reduce the energy required to cool the building.

Klueber Lubrication

Klueber Lubrication, based in Germany, offers tribological solutions by supplying tailor-made specialty lubricants directly to customers in almost all branches of the industrial sector and regional markets.

In Singapore, Klueber Lubrication has carried out phase one of the project for a plant of Nestle Singapore which involved the plant lube chart creation. Through a site survey, lubrication points were identified and lubrication streamlining took place. Through the information consolidated from different sites globally, for the same machine element/component, Klueber Lubrication recommends the correct amount and type of lubricants to be used to extend both the relubrication cycle as well as reduce labour hours required.

Klueber's Lubrication’s products are being used throughout the Nestle Singapore plant especially in the food processing areas. Equipment such as blenders, mixer, conveyors & packers generally consist of bearings, gearboxes and hydraulics in which Klueber Lubricants are applied. Besides the production equipment, Klueber Lubricants production also brings down the energy usage of air compressors, refrigeration compressors and cooling towers.

SICC

SICC Coatings is a leading German developer of paintings and construction products. In Singapore, it successfully applied its Thermo Active Roof Coating in the warehouse of Caterpillar. Previously, Caterpillar was facing problems with a hot environment inside the warehouse due to the warm weather and consequently there was the need to use energy to reduce the warm temperature inside the warehouse.

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ThermoActive allows an easy bridging of material transitions. Sunlight reflection, deflection of the heat radiation, and evaporation enthalpy work together as a free "air conditioning". In such way a clear drop in room temperatures is possible in the summer months. Cool roofs enable energy saving and environmental care within an urban area to clients, architects, engineers, energy consultants and policy makers.

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3.4 Smart and Green Building

3.4.1 Market Overview

Singapore has made a firm commitment to reduce its emissions intensity by 36% by 2030 from 2005 levels. Singapore has also pledged to stabilise its overall emissions, and to achieve peak emissions by 2030.43

Singapore has seen a remarkable transformation in its built environment over the past two decades - buildings in the country are getting greener, more efficient, and smarter with the integration of technologies with its design.

According to the BCA, Singapore firms are capitalising on the strong demand for green buildings locally and overseas, exporting their expertise to the region. This is in line with the recently launched Construction Industry Transformation Map (ITM) which sets out initiatives to strengthen the capabilities of local firms and expand their market base.

The BCA commissioned a survey to consultancy firm Frost & Sullivan which interviewed a total of 2,200 respondents, comprising homeowners, office tenants, property agents, facility managers and developers. According to the findings released in November 201744, residents in Singapore have a keen interest in green buildings and are aware of the benefits and value that green buildings bring.

The key findings in this survey were:

◼ 90% of respondents perceived that green buildings result in lower utility bills, reduced environmental impact and better health benefits. This reveals a high awareness of the tangible and intangible benefits of green buildings in Singapore.

43 Singapore’s Submission to the United Nations Framework Convention on Climate Change (UNFCCC) 44 Singapore Firms Expand Overseas Amid Strong Green Building Demand, 2017, BCA

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◼ More than 70% of homeowners acknowledged that green buildings have a better resale value, and about half of them were willing to pay approximately 3 to 4% more for a green building that is certified by the BCA Green Mark, due to the perceived benefits.

◼ 72% of developers also said that they would prefer to invest in or purchase a green building over a non-green building, and were willing to pay up to 5% more

The results of the survey confirm the strong demand for green buildings in Singapore. The BCA highlights how, by meeting the strong demand for green buildings domestically, Singaporean firms have developed specialised capabilities in green building design for the tropics.

In addition, SMEs are also expanding their services overseas, fuelled by the increasing interest and demand for green buildings. For instance, G-Energy Global Pte Ltd, a Singaporean company specialising in energy-saving projects and green buildings certification, has grown remarkably since its establishment in 2005, tapping into new markets outside Singapore. Today the company has a portfolio of over 500 projects in Singapore and overseas. Some of G-Energy’s iconic projects include Jewel Changi Airport in Singapore, Saigon Sports City in Vietnam and World Trade Centre 2 in Indonesia.

Figure 23: Jewel Changi Airport Source: architechturalrecord.com

The Singaporean government is supporting building owners and tenants greening their premises. In September 2017, the BCA offered 50 free feasibility assessments under a pilot programme for

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SMEs owning or leasing office, retail, restaurant and supermarket premises, to gauge how they fare against the existing BCA Green Mark standards. The BCA also doubled the co-funding cap for office, retail, restaurant and supermarket premise tenants under the S$ 50 million (EUR 32.5 million) BCA Green Mark Incentive Scheme for Existing Buildings and Premises (GMIS-EBP) to S$ 40,000 (EUR 25,990) from S$ 20,000 (EUR 12,995) at the launch of the programme in 2014 and expanded the list of energy efficient equipment funded under the programme. The cap is maintained at S$ 3 million (EUR 1.9 million) for building owners.

In addition to GMIS-EBP, the BCA also introduced the Building Retrofit Energy Efficiency Financing (BREEF) Scheme in 2011 to facilitate financing for the purchase and installation of energy efficient equipment or renewable energy system. With the scheme, applicants can obtain financing of up to S$ 4 million (EUR 2.6 million) or 90% of total retrofit costs from the participating financial institutions and pay off the loan through the energy savings reaped. BREEF can cover the cost of equipment, installation and professional fees. The building must achieve minimum Green Mark certified standard; the building must maintain its Green Mark certification for the period of loan tenure. The BREEF scheme will end on 31 March 2023.

Below is the list of commonly approved energy efficient equipment and consultancy works:

◼ Energy-efficient fittings

◼ Electronic and high frequency ballast

◼ LED exit lights

◼ Light Emitting Diodes (LED) Lightings

◼ Energy saving Lighting Controllers

◼ Motion Sensors

◼ Photocell Sensors

◼ Energy Management/Monitoring System (EMS)

◼ Electrical sub-meters

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Figure 24: The Commonality of Smart & Green Buildings Source: Cisco

Today, around a third of Singapore’s buildings are smart and green as the city works towards reducing its buildings’ carbon footprint in the long term, in terms of energy and water efficiency, waste reduction and the use of sustainable materials.

In Singapore, buildings contribute almost a quarter of all emissions.45 To address this issue, Singapore’s Building Construction Authority (BCA) kick-started its drive to green Singapore’s physical landscape by launching the BCA Green Mark: a rating system to evaluate a building’s environmental impact and recognise its sustainability performance, designed specifically for buildings in the tropics. Singapore’s Green Mark certification schemes are now used in over 80 cities around the world, and the country is recognised as one of the leading cities in the world for its green building efforts.

Singapore was among the first countries in the world to implement mandatory minimum environmental sustainability standards for existing buildings. Under the amendments to the

45 Building Energy Benchmarking Report 2016, BCA

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Building Control Act, building owners who retrofit their buildings must meet the following energy efficiency requirements:

◼ Achieve the minimum Green Mark Certified rating for existing buildings when replacing or upgrading their chiller system(s);

◼ Submit three-yearly periodic energy efficiency audits of building cooling systems and comply with cooling plant efficiency standards; and

◼ Submit annual energy consumption data and other building related information.

Singapore officially aims for 80% of buildings to achieve BCA Green Mark standards by 2030.46 In the longer term, its ambitions go beyond these targets - it aims for all low-rise buildings in Singapore to be positive energy (i.e. selling energy back to the grid), all medium-rise buildings to be zero energy (i.e. not drawing energy from the grid), and all high-rise buildings to be super- low energy.

Since its introduction in 2005, the Green Mark certification programme has undergone several revisions and has evolved to incorporate increasingly sophisticated methods of greening buildings. The current version of the scheme focuses on climatically responsive design, energy effectiveness, greater focus on health and wellbeing of users, smart technologies and a systematic approach to address embodied carbon and resources (the carbon emitted during the manufacture, transport and construction of building materials until the end of its life cycle).

R&D Roadmap on Building Energy Efficiency in Singapore

In 2014, the BCA launched an R&D Roadmap on building energy efficiency in Singapore. This roadmap charts a viable pathway towards wide-scale deployment of energy efficient building solutions by leveraging on technology and addressing barriers to implementation. Based on this roadmap, the National Research Foundation, through the Energy Research, Development &

46 Singapore ranks 2nd among global cities for green buildings, AsiaOne

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Demonstration Executive Committee, has allocated S$ 52 million (EUR 33.7 million) for a five- year period in establishing an integrated Green Buildings Innovation Cluster (GBIC).

Figure 25: The Green Buildings Innovation Cluster (GBIC) Source: BCA

GBIC’s overall objective is to accelerate the commercialisation of promising building-energy efficient technologies and solutions to bring them closer to market adoption. It underlines the robust link between research and translation to policy, and is aimed at integrating the efforts in developing large scale and high impact demonstration projects for promising technologies and solutions. GBIC will also tightly couple research with translation to market for widespread adoption of energy efficient solutions and practices, as well as streamline, coordinate and disseminate building energy efficiency related activities through a central focal point.

The Green Building Masterplan

Also in 2014, the BCA unveiled a third masterplan that would guide the country’s green building strategy for the next 5 to 10 years. At the centrepiece of BCA’s Third Green Building Masterplan47

47 3rd Green Building Master Plan, BCA

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is a new S$ 50 million (EUR 32.4 million) incentive scheme for existing buildings, called the BCA Green Mark Incentive Scheme for Existing Buildings and Premises (GMIS-EBP), which will support efforts by building owners and tenants from small and medium enterprises to adopt sustainable initiatives and improve the energy efficiency of their premises. The incentive scheme co-funds a maximum of half of the cost of retrofitting buildings for energy improvements, or sums of up to S$ 3 million (EUR 1.9 million) for building owners and S$ 40,000 (EUR 25,990) for individual occupants and tenants.

Figure 26: The BCA Green Building Masterplan Source: BCA

The Use of ICT in the Building & Construction Sector

The use of ICT is now established in the construction industry in Singapore.48 At the national level, it is used in the submission of plans and designs; for checking on compliance of designs with regulations; for finding out contracts advertised; for submitting bids; and for finding out the results of tenders. The public-private collaboration under BuildSmart Singapore provides leadership in ICT development and application in construction. Construction companies use ICT for business, technical and administrative purposes. It is also used in all aspects of the management of construction projects.

48 New Perspectives on Construction in Developing Countries, George Ofori

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As part of BCA’s efforts to encourage the adoption of new technologies for construction, it launched the Centre for Lean and Virtual Construction (CLVC) in 2016, which has zones for Virtual Design and Construction, Augmented Reality and Building Information Modelling.

Figure 27: The Centre for Lean & Virtual Construction Source: BCA

The array of latest 3D immersive technologies at the CLVC allows all built environment professionals and stakeholders such as owners, designers, main contractors, specialist contractors and sub-contractors of a building project to fully immerse themselves to walk through

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virtual 3D buildings. They can simulate the construction process in a 3D virtual environment before buildings are physically built on site, as opposed to viewing conventional drawings and models on paper and screen.

The Singapore construction industry has become familiar with Building Information Modelling (BIM) and has begun to innovatively utilise BIM to raise construction productivity. Three projects (CapitaGreen, Mapletree Business City II and Yishun Community Hospital) have done exceptionally well in leveraging BIM innovatively and have in the process achieved cost savings and projects of higher quality.

Beyond the 3D BIM model, many local institutes of higher learning, including the Singapore University of Technology and Design, have incorporated 4D and 5D BIM technology into their curriculum. Touted as one of the key technologies to improve productivity and integration across the value chain, there is good potential that BIMs will be increasingly adopted in Singapore.

The advancement of digital data coupled with the fall in the cost of computing and the cost of sensors is opening up a new world of Big Data and Data Analytics in the Construction Sector. Singapore’s notion of a smart nation is based on its ability to gather data, interpret it, glean insights and then translate those insights into meaningful action, and it is looking to use big data to track and analyse human traffic, human patterns and usage behaviour in order to allow it to optimise resource consumption within the building.

BCA has recently updated the Green Mark scheme for residential buildings to take into account these new technologies and to encourage developers to put in place more sensors into their buildings. BCA has also expanded the coverage of targeted buildings for the annual mandatory submission. While previously, only owners of commercial, healthcare and educational buildings were required to submit their building information and energy consumption data annually to BCA, as of 2017 this list has been expanded to include large buildings used for sports and recreation, civic and community institutions, places of worship, transport facilities and light Industries. In addition to enhancing Singapore’s capabilities in pervasive connectivity, this is a fundamental prong of Singapore’s Smart Nation Platform and will help develop better situational awareness

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through real-time data collection and efficient sharing of collected sensor data. Singapore’s plans include developing a Smart Nation Operating System (SN-OS), which can be thought of as being equivalent to a computer operating system.

Figure 28: Singapore’s Smart City Vision Source: The Straits Times

Singapore's digital economy provides some of the most fertile grounds for Internet of Things (IoT) technologies to develop. For instance, there are plans to deploy a Smart Nation Sensor Platform, which will leverage connected sensors and IoT devices to improve security and urban living.

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The network uses artificial intelligence technologies to analyse and monitor noise, water and sewage levels for better management of housing estates.

With 80% of Singaporeans living in Housing Board flats, the HDB has made use of smart technology in the planning and designing of buildings. The Integrated Environmental Modeller is a software that HDB uses to simulate interactions with surrounding urban landscape, design open spaces and optimise building layout.

The following examples illustrate some of the most innovative smart building projects developed in the country to make buildings more efficient and environmentally friendly:

◼ In May 2019, Ascendas-Singbridge Group (ASB), supported by the Infocomm Media Development Authority (IMDA) and Enterprise Singapore, announced the formation of a Smart Urban Co-Innovation Lab, the first developer-led lab in South East Asia. It is slated to be launched later in 2019 and it will facilitate and support at least 30 co-innovation projects within the next three years. The lab will focus on building capabilities in the four key areas: intelligent estates, smart mobility, digital wellness, and agritech. The lab will provide a platform for industry players to share problem statements and collaborate with technology players to co-develop and trial new and innovative solutions for commercialisation in Singapore as well as overseas. The lab will roll out various programmes such as call-for- proposals, pilot tests, workshops and boot camps, with the aim of developing the capabilities and competencies of technology providers, as well as producing innovative Proof-Of- Concepts and prototypes.

◼ In June 2019, IMDA signed a Memorandum of Understanding (MOU) with Australia's trade and investment agency, Austrade, to develop innovative smart estate solutions. The MOU will focus on networking opportunities for Singaporean and Australian smart estate players, driving technology projects for the two countries, and co-developing a smart estate guide for the industry. Examples of technology projects could be tapping data to predict the next lift breakdown, or making use of more efficient energy resources through on-demand lighting and cooling systems in buildings.

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◼ In July 2018, JTC Corporation, the state-owned real estate company which develops and manages industrial estates in Singapore, signed a Memorandum of Understanding (MOU) with ST Engineering, to form a strategic partnership for the design, development and deployment of an Open Digital Platform for Punggol Digital District (PDD)49. PDD is a multi-agency collaboration project between Infocomm Media Development Authority, JTC, Singapore Institute of Technology and Urban Redevelopment Authority. PDD will see the full integration of digital infrastructure from the ground up, in tandem with the physical planning and development of the District. The Open Digital Platform will integrate various smart city solutions such as facilities, building and estate management systems, district cooling system, pneumatic waste conveyancing system, autonomous goods delivery systems, access and security systems, carparks system, traffic lights system, and autonomous vehicles in PDD, enabling all district operations to be centralised for management. Real-time access to information on what is happening around the district will shorten time taken by estate managers to identify and react to potential problems using predictive analytics and pre-emptive solutions. The Open Digital Platform will also be interoperable with the Smart Nation Sensor Platform50 - developed by the Government Technology Agency of Singapore or GovTech - to enable wider sharing of sensor data with public agencies to improve the planning and delivery of public services. On the user side, tenants will obtain biometric access to facilities while their visitors experience seamless access to the premises via their mobile phones. Tenants of the JTC Business Park can also expect cost savings due to optimisation of building systems by the smart technologies. To encourage academics, researchers, startups and small & medium enterprises (SMEs) to create solutions, data on the Open Digital Platform will also be made available via an Application Programming Interface (API).

◼ During 2018, renovations were carried out at the Keppel Bay Tower offices to make Keppel Corporation’s headquarters more energy efficient and environmentally sustainable. Smart

49 The Punggol Digital District is scheduled to open progressively from 2023 onwards. 50 This refers to an integrated nation-wide sensor platform, including the fitting of nearly 100,000 lampposts with cameras and sensors, to improve municipal services, city-level operations, planning and security: www.smartnation.sg/what-is-smart-nation/initiatives/Strategic- National-Projects/smart-nation-sensor-platform

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systems were installed to adjust lighting levels to fit the number of people at work, while photo sensors were installed to dim perimeter lighting when there is sufficient daylight.

◼ One of the smart buildings in Singapore, Capital Tower, was recognised by Computer Business Review in 2015 as one of the top 10 smartest building around the globe. Capital Tower, built in 2000 and considered as one of the oldest smart buildings in the world, features integrated intelligent building management system (IBMS) for its services and facilities, intelligent car park management, and integrated security management system.

◼ Punggol Eco-Town, the first public housing estate to test-bed smart technologies, launched the first batch of smart HDB homes51 in 2015. The HDB homes features smart car park management systems to monitor parking demand from residents and visitors and a smart pneumatic waste conveyance system that monitors waste disposal and recycling patterns and volumes to improve the collection of waste and recyclables, thus helping improve the quality of the air. The residential building’s common areas are also equipped with smart lightings while the flats have ready smart power and data points for easy installation of smart technologies that can be utilised by the residents. The use of smart lighting is estimated to reduce energy usage in the estate by 40%. Such smart technologies include home energy management system, which enables residents to monitor and manage their home appliances’ energy consumption in real time from anywhere, and monitoring systems for elderly or patient care.

◼ In Jurong Lake District, which is Singapore’s first smart city ‘testbed’, a shared sensor and camera network has been set up, with A*DAX (an open-standards, cross-domain platform for data linking, sharing and analytics across Singapore’s public and private sectors) as the core data management system. Participating developers from different sectors have been able to use A*DAX’s capabilities to enhance their own applications and trials within the Jurong Lake District. Examples include a web-based service that integrates environmental information to help urban planners monitor and measure microclimates, as well as an automated system that is capable of detecting people sneaking a cigarette into non-smoking zones.

51 Buildings managed by the Housing and Development Board (HDB)

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◼ At the consumer end, SP Services, a subsidiary of Singapore Power, together with the Energy Market Authority of Singapore, and the Public Utilities Board, launched a mobile app that aims to help consumers reduce energy and water consumption that will help them to lower utility bills. The SP Services mobile application, which is available in Google Play and iTunes, enables users to check their estimated energy and water. Users can also set a target for savings and will receive tips about energy and water savings.

◼ In September 2016 the BCA announced its partnership with Microsoft for a two-year pilot project involving 30 commercial buildings in the country. The project involves monitoring of cooling systems in these buildings and uses machine learning to predict deviations resulting in energy waste. Dubbed as the Chiller Efficiency Smart Portal, the technology will alert building and facility managers via SMS or email to take advanced steps to save energy. It will empower the managers to target specific areas for improvement and optimise energy efficiency. In Singapore it is reported that buildings consume about one-third of the country’s electricity, with chillers that are used to remove heat from cooling systems in buildings (e.g. air conditioning) consume up to half of the amount. Through the pilot project BCA hoped that buildings will be able to improve their energy efficiency. The portal is now available to all Green Mark buildings following a successful two-year trial.

Local Players

3M Technologies is a member of the Singapore Green Building Council, and it specialises in solutions related to energy-efficiency, among other things. 3M has been present in the Singaporean market for 50 years. Since its founding in 1966, 3M Singapore has grown from its humble beginning with only 8 employees, to a company with more than 1,600 employees and established local capabilities to serve the needs of local, regional and global customers. 3M’s presence in Singapore includes two manufacturing plants at Woodlands and Tuas, an R&D Centre at Woodlands, and a Customer Technical Centre, laboratory and other supply chain and business operations based at Yishun. The Woodlands Plant was one of the first existing industrial buildings in Singapore to be conferred the Green Mark Award (Gold) by the Building and Construction Authority in 2010. With its focus on manufacturing excellence and quality, the Plant

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won the Singapore Manufacturing Excellence Award – Operational Excellence in 2007, and the Singapore Quality Award.

Despite being in the country for a considerable period, the company is still actively expanding locally. 3M is investing S$ 135 million (EUR 87.5 million) in Singapore as part of its plans to expand its Tuas manufacturing plant. The 100,000-square-metre plant is expected to be completed by end-2018, and will add to the company's manufacturing capabilities. New areas such as smart urban solutions are also being developed, including energy-efficient lighting in places like car-parks. Other innovations include a vertical farming platform which could help urban farmers in land-scarce Singapore. The company is currently investing and expanding in South East Asia in the context of its regionalisation strategy aimed to support the structure of its supply chain.52

Lutron GL Limited was founded in 1961 and is one of the founding members of the Singapore Green Building Council, and designs and manufactures lighting controls, daylight and occupancy sensors, automated window treatments, ballasts and LED drivers for both residential and commercial applications. Using various lighting control strategies, Lutron products can save as much as 70% lighting energy, making modern buildings greener. The company offers wired and wireless solutions for both new buildings and retrofit projects with payback period as short as 12 months. Lutron products were installed in numerous projects worldwide including the White House, Empire State Building, LV Stores, Taipei 101 and Singapore . It considers Singapore as a tremendous platform for smart and green building technologies such as intelligent lighting due to its commitment towards becoming a smart nation. The company also believes that it is well-positioned to cater to the market’s demand for innovative smart lighting control systems.

Fast Flow is headquartered in Singapore with offices in Australia, Malaysia, Thailand, Hong Kong and China. It employs more than 200 professionals. In addition to the main offices, Fast Flow has appointed national distributors in different countries in Asia to serve the needs of the local

52 3M to invest S$ 135m in Singapore as part of expansion plans, 2016, Channel NewsAsia

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construction industry. Fast Flow is a highly specialised company providing smart solutions for rainwater management in building projects across Asia Pacific. Fast Flow designs drainage systems that seamlessly integrate into a host building, optimising material use and achieving both architectural and engineering expectations. The company is certified to adhere to Workplace Safety and Health standards, and is a member of the Singapore Green Building Council.

Fast Flow undertakes the full construction of the project from design, supply to system installation. Moreover, Fast Flow undertakes the full design including concept and detail as well as design and detail coordination. In Singapore the company was engaged in a number of projects. For example, Fast Flow was awarded a contract to design and implement a Siphonic Drainage system for the Marina Bay Sands SkyPark. By adapting the Fast Flow Siphonic System, the SkyPark is now able to drain 12,400m2 of roof with only nine stacks of 150mm pipe. The Fast Flow Siphonic System is also able to work with other services and structures within the tight cladding space without having to enlarge or lower any structural or architectural elements.

3.4.2 EU Entry Opportunities

Singapore represents a fertile environment for companies offering green building products and solutions. The country is also an excellent test-bed for launching new Smart technologies, and appliances are being increasingly tailored to suit Singapore’s tropical climate. European companies that want to enter the local market should take this trend into account.

◼ European companies with smart building technologies using renewable energy have a good prospect of doing business in Singapore as this area is highlighted as the current interest in the country. For example, the BCA has demonstrated that solar energy can be used to meet energy demand and achieve zero energy balance through its living laboratory for testing of green technologies, called Zero Energy Building (ZEB). ZEB, which is located

within the BCA Academy, is equipped with sensors and monitors such as CO2 sensors to regulate the amount of fresh air fan by triggering its speed control; motion sensors for activation of lights and fans based on movements; and daylight sensors, which automate the reduction of artificial lighting to optimise energy usage. Aside from test-bedding and

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demonstration, ZEB is also a hub for practitioners and students in the study of technologies on energy efficiency and green buildings. According to consultancy Navigant Research, the global ZEB market is projected to grow from less than US$ 100 billion (EUR 89.2 billion) in 2016 to US$ 1.4 trillion (EUR 1.2 trillion) by 2035. The trend, notably, is led by rapid advancements of technologies and governments’ sustainability agenda. This has led to a significant increase in demand and reduction of cost for renewable energy technologies, such as Photovoltaics (PV), and energy efficient equipment.

◼ As most green building solutions developed in Europe are not for tropical climates it is important to develop local showcase installations to illustrate to the market and public that green buildings are not just theoretical possibilities, especially as Singaporean consumers are becoming more knowledgeable in their observations and demand. European companies that can attune their technologies to this expectation have good opportunities in the market.

◼ There are also opportunities for European companies to partake in the excellent R&D facilities, funds and grants available in Singapore. European companies can take advantage of Singapore’s unique test facilities for smart building technologies to assess the technologies’ performance and acclimatise them to local environment either by partnering with a local company or institution or doing so on their own. For instance, in 2015 PUB and Suez Environment, a French water and waste management company, signed an agreement to use Singapore as a test-bed for projects involving wastewater treatment, storm water management and automated meter reading. Using information and communication technologies and analytical software, the two parties will develop a smart water grid. This will include a decision support tool for storm water management and automated meter reading to track water consumption, which could potentially lead to consumers taking proactive steps to conserve water.

◼ There are other test and R&D facilities being developed or in need in Singapore that can possibly be delivered by European companies. European companies can use these facilities to develop their products and also to establish business collaborations with local partners.

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▪ For instance, Singapore is now developing Asia’s first rotatable test facility for building technologies. In collaboration with and modelled after the U.S. Lawrence Berkeley National Lab’s FLEXLAB, the facility will allow building systems and components, such as lighting, air conditioning and façade, to be tested in ‘real world’ conditions in the tropical belt. Upon its completion, researchers will be able to study the actual performance of various building technologies through a configurable test setup and at different orientations relative to the sun in tropical climatic conditions.53

▪ The BCA has opened the BCA SkyLab, in collaboration with the Lawrence Berkeley National Laboratory in California, a world leader in science and engineering and building energy performance research. The SkyLab is the world’s first high-rise rotatable laboratory for the tropics. Covering a floor area of about 132 m2, the test facility has a 360-degree rotatable capability, full plug-and-play configurability and is fitted with extensive instrumentation and sensor networks scalable in the future. It is equipped with a network of more than 200 sensors with high accuracy and granularity, across two identical cells for comparison testing. These sensors measure performance metrics such as energy performance, indoor environmental quality, outdoor environmental parameters and building automation system indicators. European companies can offer their technologies to complement such facilities in the country.

◼ The Singaporean public sector is an avid supporter of investments in green building technologies. In March 2015, the BCA announced that S$ 450 million (EUR 291.7 million) had been set aside for the second tranche of the Construction Productivity and Capability Fund (CPCF) in the next three years to help the built environment sector make higher investments in impactful productive technologies. This is in addition to an initial S$ 335 million (EUR 217 million) committed to help drive productivity in the sector. As of March 2018, S$ 560 million (EUR 363.7 million) in funds had been committed under the CPCF, benefiting over 9,000 firms, 94% of which are SMEs. Another S$ 50 million (EUR 32.4 million) is allocated under the Green Mark Incentive Scheme for Existing Buildings and Premises (GMIS-EBP). Launched in September 2014, the GMIS-EBP encourages and

53 3rd Green Building Master Plan, BCA

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incentivises building owners, occupants and tenants to undertake and adopt energy efficiency improvements and measures within their buildings and premises. The incentive applies to existing small and medium enterprises (SMEs) tenants and building owners, or building owners with at least 30% of their tenants being SMEs. The scheme will co-fund up to 50% of the retrofitting cost for energy improvements, or up to S$ 3 million (EUR 1.9 million) for building owners and up to S$ 40,000 (EUR 25,990) for occupants and tenants.54 European companies can make use of these incentives by approaching the right targets and offering solutions to their needs based on the technology characteristics described in each incentive and scheme.

◼ Fueled by country-wide initiatives like Singapore SMART Nation, which encourages the deployment of new and innovative technology in buildings, Singapore is fast becoming ground zero for Buildings Digitalisation. European companies are advised to note that Singapore is targeting the use of ICT solutions as a means to make its buildings greener. Small and medium developers can be potential targets for these products. One of the key projects aimed to promote the use of innovative construction technologies in the country include the new BCA Centre for Lean and Virtual Construction (CLVC). The million-dollar facility, which is located at BCA Academy, aims to equip built environment professionals towards process change based on the concepts of lean and virtual construction, and facilitates the Virtual Design and Construction (VDC) process using Building Information Modelling (BIM). This enables project teams to build digitally first, before the actual construction, allowing Singaporean companies to experience how new technologies can help raise productivity throughout the construction value chain.

◼ The Energy Efficiency Award Challenge was organised by the Singaporean-German Chamber of Industry and Commerce in June 2018. The Award Challenge aimed at identifying the most energy-efficient and innovative German technologies implemented in Singaporean buildings, highlighting innovative German energy-efficient solutions such as insulation systems, insulated glazing, heating and cooling technologies, efficient home appliances,

54 3rd Green Building Master Plan, BCA

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smart metering, energy-efficient lighting systems, cogeneration systems, as well as pumps and compressed air systems.

European Players

Integrated Environmental Solutions (IES)

Integrated Environmental Solutions (IES) is recognised as a world leader in 3D performance analysis software that is used to design energy efficient buildings across the globe. The company is headquartered in Glasgow, UK. IES’ technology is supported by integrated consulting services, and today its capabilities are expanding from the use on individual buildings to creating sustainable cities.

IES supports smarter energy-efficient choices across new building investments, building operation and refurbishment of existing buildings by uncovering hidden costs, energy and carbon savings. The company works with regulatory and rating agencies, building owners, facilities managers, sustainability and energy managers, architects and engineers. IES invests over ¼ of its turnover in R&D to update its analytical tools and industry knowledge.

The company has offices in Singapore, and IES is also a member of the Singapore Green Building Council. In 2011, IES and JURONG Consultants, part of Singapore’s JURONG International Group which is an integrated, multi-disciplinary consulting, turnkey and facilities management services provider, announced a partnership between the two companies to develop assessment tools for the Singapore sustainable building rating system Green Mark. Working with the support of the Singapore Building & Construction Authority (BCA), JURONG Consulting and IES created a tool which utilises IES’s unique technology. The tool aids architects, engineers and building designers in Singapore by simplifying the Green Mark assessment process so its consideration can be integrated into the whole design process, right from the crucial early architectural stages.

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SUEZ Environnement

SUEZ Environnement, a French utility and environmental solutions provider, officially opened its new regional business hub in Singapore in 2015. The company established its innovation centre along with 15 engineers and scientists to support its development in the smart water sector and to tap the growing opportunities in the South East Asian region. Singapore has been the ideal location for SUEZ Environnement’s regional office in South East Asia because of its rich experience in water industry, strong commitment to sustainably managed resources, and for being the economic and business centre in the region.

To further enhance its footprint in Singapore, the company signed a memorandum of agreement with the Public Utilities Board (PUB) to share expertise and jointly develop technologies that will protect water resources along with information dissemination across industries and the general population of its importance. The MOU reinforces the previous agreement signed in May 2015 with PUB for three research projects in waste water treatment, storm water management and automated meter reading. The partnership is set to develop a smart water grid utilising information communication technology and analytical software solutions to come up with decision support tools for storm water management, automated meter reading to track water consumption and customer usage behaviour to engage them on water conservation, and an energy waste water treatment process with smart monitoring and advanced control strategies.

The automated meter reading and storm water management projects are supported by the Technology Pioneer Scheme. Around 1,200 smart meters are planned to be installed in neighbourhoods like Tuas and Yuhua to understand the water usage patterns of households and industries, which will help PUB to determine room for improvement and create effective campaigns to encourage people to conserve water. PUB’s operational decision-making during storms will be aided by the development and deployment of an integrated dashboard at the Marina catchment, which will have access to essential data such as rainfall radar, water level sensors, rain gauges and flow senses. The energy waste water treatment will see the development of an efficient and stable water treatment process with zero balance energy consumption.

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Engie Energy International

Engie is a French energy player and an expert operator in the three businesses of electricity, natural gas and energy services. The company provides individuals, cities and businesses with highly efficient and innovative solutions largely based on its expertise in four key sectors: renewable energy, energy efficiency, liquefied natural gas and digital technology. Engie Energy International is headquartered in London, United Kingdom.

Engie has opened a new green energy lab in Singapore with support from the Singapore Economic Development Board (EDB). The new lab will act as a regional hub for energy innovation and technology in South East Asia and focuses on three fields: smart energy systems for cities and islands, industrial energy efficiency and gas technologies. It will support and collaborate with the Engie entities that are already established in the region, managing R&D projects and providing services based on its technological expertise, which includes managing new energies, digital systems such as the Internet of Things (IoT) and mobile apps. It will also strengthen existing technologies to enhance energy-related infrastructure and energy uses.

Figure 29: The Opening of Engie’s Lab in Singapore Source: Engie

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TÜV SÜD PSB

TÜV SÜD was established more than 147 years ago in Germany. It is a leading global provider of technical services, helping its clients improving quality, safety, reliability while ensuring environmental protection and cost effectiveness.

In Singapore, TÜV SÜD PSB, previously known as PSB Corporation, is a service provider for a comprehensive and integrated suite of product testing, inspection and certification services. TÜV SÜD PSB’s test reports and product certification marks are well accepted by manufacturers, third party buyers and government authorities worldwide. TÜV SÜD PSB is accredited under the Singapore Accreditation Council Singapore Laboratory Accreditation (SAC-Singlas) Scheme. Today, TÜV SÜD PSB is headquartered in Singapore with operations in Thailand, Indonesia, Malaysia, Philippines and Vietnam.

Singapore Green Building Product Labelling Scheme (SGBPLS) is a joint mark certification between TÜV SÜD PSB Pte Ltd (TÜV SÜD PSB) and Singapore Green Building Council (SGBC). It is a third party broad-based labelling scheme aimed at promoting the development of environmentally sustainable buildings. Under the Singapore Green Building Product Labelling Scheme, the building products would be assessed on its properties and performance through a comprehensive list of assessment criteria covering energy efficiency, water efficiency, environmental protection and quality, material performance and other specific green features.

Ramboll

Ramboll is a leading engineering, design and consultancy company founded in Denmark in 1945. Ramboll works across the following markets: Buildings, Transport, Planning & Urban Design, Water, Environment & Health, Energy and Management Consulting.

Ramboll’s office in Singapore has developed significant expertise in the field of Smart Buildings. One of the solutions being implemented by Ramboll in Singapore relates to the optimisation of office environments, so that lighting can be warmer or cooler depending on what time of day it is

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and the employees’ own personal preferences. This type of environmental technology affects the production of melatonin in staff, which studies have shown results in increase productivity.

Ramboll's environmental consultants and health scientists in Singapore have also been delivering high-end solutions and advice for customer-specific requirements throughout South Asia, Japan and South Korea since 2001.

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3.5 Smart Grids

3.5.1 Market Overview

Singapore has one of the most reliable and stable electric grid systems in the world, however the Singapore government remains highly proactive in providing greater reliability and efficiency through innovation. As far back as 2009, the Energy Market Authority (EMA) of Singapore launched a pilot smart grid test programme, the Intelligent Energy System (IES), to develop and test new smart grid technologies and solutions.

Figure 30: Conceptual Overview of Singapore’s Intelligent Energy System (IES) Source: Energy Market Authority

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The S$ 30 million (EUR 19.4 million) smart grid initiative is a 2-phase project with Phase 1 already completed, which saw the development and deployment of enabling infrastructure and systems. EMA awarded Phase 1 of the project to Accenture, and worked with several partners including ST Electronics (Info‐Comm Systems), Oracle, Hewlett Packard, Power Automation, Control4, and Greenwave. Phase 2 was launched in October 2012 by rolling out smart meters and in-home display units to participating commercial, industrial, and household consumers to test smart grid applications.

The IES pilot was to test and evaluate new applications and technologies around a smart grid, and aimed to integrate modern information and communication technology with the power system to allow two-way communication between electricity consumers and grid operators. It integrated an array of state-of-the-art information and communication technologies with the power infrastructure through the installation of more than 4,500 smart meters in residential, commercial and industrial locations to test and evaluate workable solutions.

Today, many smart grid features are already in place in Singapore’s grid system, such as the Supervisory Control and Data Acquisition (SCADA) system, which allows remote monitoring and control of key installations. Its focus is now towards developing a smart grid community and increasing the uptake of smart grid applications in the country, apart from strengthening the core infrastructure developments in electricity and gas sectors. It is also looking at developing the enabling infrastructures and policies to drive developments in the area of smart grid.

Under the national Research, Innovation and Enterprise 2020 plan, the government set aside S$ 375 million (EUR 244 million) in July 2017, for key research, development and deployment initiatives in the energy space, focusing on areas such as solar, energy storage, smart grids, and green buildings.55 This includes plans for a next generation smart grid, labelled Grid 2.0, which would consolidate gas, solar and thermal energy into a single intelligent network that is more efficient, sustainable and resilient. This builds on Singapore’s investments in smart meters, grid storage, and solar with agencies including the Energy Market Authority, the Building and

55 Power grid revamp among projects for $19b R&D fund, 2017, The Straits Times

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Construction Authority, JTC Corporation and the Singapore Economic Development Board, will be exploring further investments in key component technologies, such as solid-state transformers.

Examples of Singapore’s initiatives in relation to smart grid technologies include:

◼ The Energy Market Authority (EMA) launched the Demand Response (DR) programme in April 2016, which enables contestable consumers to reduce their electricity demand voluntarily, in exchange for a share in the system-wide benefits. Such reductions typically take place when wholesale prices in the National Electricity Market of Singapore (NEMS) are high or when additional resources can improve system reliability. DR is expected to reduce ‘peaks’ in electricity consumption where prices are typically higher. In the long term, this reduces the need to invest in expensive generation units that are only run infrequently to meet ‘peak’ demand. Diamond Energy became the first retailer approved for the Demand Response programme in October 2017, registering an initial capacity of 7.2MW registered with the National Electricity Market of Singapore.56

◼ The launch of an electricity futures market in 2015 which allows the trading of standardised contracts of electricity products into the future at specified prices. Since the introduction of the electricity futures market, the number of electricity retailers in Singapore has increased from 7 to 25, and electricity prices have become more competitive. According to a study conducted by Professor Frank A. Wolak from Stanford University, wholesale electricity prices had been lowered by at least 10%, and the prices of new retail contracts lowered by about 10% to 20% on account of the electricity futures market. In addition, the electricity futures market has enabled the development of innovative business models, such as the offering of “green” power packages or green tariffs. Solar providers are better able to hedge the price risk for providing power during non-sunny hours, and blend the solar energy into the power package for customers. Another example of a new business model is power packages linked to energy efficiency or demand-side management. Energy service providers such as demand response providers are now able to offer a complete energy package to consumers because they can leverage on the electricity futures market to hedge their price risk, as the use of

56 Diamond Energy first to offer electricity demand response, 2017, Business Times

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base load electricity futures contracts can provide more price certainty compared to purchasing solely on the wholesale electricity market.

◼ The facilitation of solar power deployment, which has been growing enormously in Singapore (from 30 installations in 2008 to 1,840 installations in 2018). Due to its location, Singapore has limited renewable energy options. However, Singapore is located in the tropical sunbelt with good irradiance. Thus, amongst the renewable energy technologies, solar generation offers the greatest deployment potential in the country. The EMA launched in 2018 the Energy Storage Programme to build capabilities and solutions in grid-scale energy storage, suited for Singapore’s weather condition, to deal with intermittency and to facilitate the deployment of solar energy. The programme will deploy and test different technologies, such as redox flow and lithium-ion batteries, evaluating their performance under Singapore’s hot, and humid environment. The initiative will also help establish clear technical guidelines for energy storage technologies.

◼ In 2018, JTC Corporation and SP Group teamed up to develop and implement a smart grid in the Punggol Digital District (PDD). It is estimated this development can reduce carbon emissions of the district by 1,700 tonnes annually, equivalent to taking 270 cars off the road. The smart grid planned for the PDD will be integrated with an open digital platform in the district. This will allow the exchange of data on buildings for the purpose of optimising electricity use. PDD will house key growth sectors such as digital and cyber security. It will be the first district in Singapore to be fully integrated with Internet of Things systems from the ground level up. For example, the smart grid can detect which buildings are using more electricity for cooling purposes. It then can send this data to the Open Digital Platform, which can activate the building management system to lower blinds in the affected buildings. The first buildings in the district are expected to be completed by 2023.

◼ In July 2018, SP Group partnered with the Housing and Development Board (HDB) to develop integrated digital energy solutions at Tengah, making the housing estate Singapore’s first smart energy town.57 HDB has announced Tengah as the first large-sized greenfield

57 SP Group Partners HDB to Study the Development of Singapore’s First Smart Energy Town at Tengah, 2018, SP Group

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town to be developed since Punggol two decades ago. Under the MOU, HDB and SP will study the development of an integrated energy masterplan that will make Tengah the first smart energy town. HDB envisages the pervasive usage of solar energy including building- integrated photovoltaic (BIPV) systems, electric vehicle (EV) charging and batteries as a smart energy enabler at Tengah. SP will work with HDB to drive the design and integration of energy solutions, and seek partnerships with players in the energy ecosystem, including small and medium-sized enterprises (SMEs). SP will develop an integrative software layer called the Smart Energy Concierge. Enabled by artificial intelligence (AI), it will utilise smart controls, sensors and algorithms to integrate the various energy solutions in a coordinated manner to generate efficiencies and energy savings.

◼ The SP Group launched the world's first smart grid index (SGI) to help utilities measure and advance in key dimensions of grid development. The SGI was designed to be simple and quantifiable for it to benchmark itself against its peers worldwide and to easily determine what aspects they are strong in and where they can improve. It covers seven key aspects of an electricity grid: supply reliability; monitoring and control; data analytics; integration of Distributed Energy Resources (DER); green energy; security; and customer empowerment and satisfaction. Although utilities worldwide have applied varying parameters to benchmark smart grids, SP has drawn on definitions published by the EU and the U.S. Department of Energy in a bid to derive a suitable framework.

◼ In 2018, the SP Group also launched one of the world’s first blockchain-powered renewable energy certificate (REC) marketplace. The first known buyers of this have been City Development Limited and DBS Bank. Solar developers such as Cleantech Solar Asia and LYS Energy Solutions, with local and regional solar assets, have signed a collaboration with SP to place their assets on the marketplace for sale of RECs. Designed and built in-house by SP’s team of digital energy experts, this marketplace enables local and international organisations – regardless of size, business or location in the world – to trade in RECs. The unique attributes of blockchain technology will ensure the security, integrity and traceability of each REC transaction. This will drive the greater integration of renewable energy sources on the electricity grid. With SP’s blockchain-powered marketplace, buyers

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are automatically matched with sellers, around the globe, according to their preferences. This helps big and small organisations to achieve their green targets and strengthens cross- border sustainability efforts with SP’s international reach. This will also contribute to Singapore’s low carbon targets, as part of its Paris COP-21 agreement.

◼ In 2018, the National Research Foundation Singapore (NRF) and EMA set up two new consortia to drive R&D and push for the adoption of new technologies in the energy sector. The Smart Grid and Power Electronics Consortium Singapore (SPECS) and the Cooling Energy Science and Technology Singapore (CoolestSG) Consortium will bring together research institutes, companies and government agencies to come up with solutions in smart grid and cooling technologies. NRF and EMA will set aside up to S$ 9 million (EUR 5.8 million) over three years for both consortia. SPECS will provide a platform for companies to access the latest technologies developed by these researchers, and to translate them into commercially-viable products and services.

Singapore is relentlessly looking for ways to further improve its reliability, efficiency, and integration of energy sources through technological innovation. The Singapore power sector today is characterised by a shift towards distributed power generation systems which employ a combination of conventional and renewable energy sources. This creates an opportunity for smart business models and drives the need for smarter transmission and distribution networks and power management capabilities to ensure system efficiency.58

As it has limited land for large solar farms, Singapore is looking to maximise and push the deployment of solar PVs in its buildings. In October 2016, the Housing Development Board (HDB), which is Singapore’s public housing agency, called a solar leasing tender aggregating demand for the installation of solar panels across nine government organisations as part of the SolarNova programme led by the Singapore Economic Development Board (EDB). The exercise will see solar PV installed at 636 HDB blocks and 31 government sites. Since 2008, residential

58 Capturing new growth areas in the power ecosystem, 2016, IE Insights

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consumers are allowed to sell excess electricity to the grid. In 2011, this concession was extended to commercial and industry consumers of solar systems that do not exceed 1 MW.

Moreover, in 2018, Sunseap Group, South East Asia’s leading sustainable energy provider, announced that the company is developing one of the world’s largest offshore floating photovoltaic (OFPV) systems to be located north of Woodlands Waterfront Park, along the Straits of Johor. Supported by the Singapore Economic Development Board (EDB), the 5 MegaWatt-peak (MWp) floating solar system will generate about 6,388 MWh of renewable energy annually once completed. Most large-scale floating PV systems are built on freshwater ponds, lakes or reservoirs. Sunseap’s latest is one of the largest sea-based photovoltaic (PV) projects.

Figure 31: Solar PV Installations on Public HDB Blocks Source: DBS Foundation

Singapore has initiated several pilot projects to integrate wind and solar into its energy grid. In 2014 for example, the country’s National Environment Agency and Economic Development Board supported a S$ 8 million (EUR 5.2 million) project by the Nanyang Technological University to build a hybrid micro grid on the offshore island, Pulau Semakau, which will integrate multiple large-scale renewable energy sources. On Pulau Ubin, another island off Singapore’s

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north-east coast, the Energy Market Authority is also conducting a test-bed study which studies the impact of solar power on a micro grid.

To support its needs, Singapore has also been developing its manpower competencies in the sector by leveraging on the existing National Energy Competency Framework (NECF), which identifies specific areas of grid-related competencies such as network monitoring, equipment condition monitoring, and maintenance of network systems. New training programmes related to smart grids are being developed by the Energy Market Authority together with the Singapore Institute of Power and Gas (SIPG). In view of the development, the NEFC could, if necessary, be enhanced to include new competencies and skillsets to match the requirement by the technology.

Currently, most of the electricity meters in Singapore are cumulative meters. They are read once every two months manually.59 Singapore has had smart meters for electricity since 2014, but only for consumers who use at least 2,000 kilowatt hour of electricity a month and have switched to buying electricity from an electricity retailer or the wholesale electricity market.60

Previously, Singapore households could only buy electricity from SP. However, in 2018, EMA launched the Open Electricity Market (OEM) where households and businesses can choose to buy electricity from a retailer at a price plan that best meets their needs. This initiative will provide about 1.4 million households and business more choices and flexibility when buying electricity, while being provided with the same electricity supply through the national power grid.

59 Smart Metering Trial for Utilities Consumption, 2016, EMA 60 Wanted: Smart meters for households, 2016, The Straits Times

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Local Players

Singapore Power (SP) is the corporatised entity of the former electricity and gas departments of the Public Utilities Board. Currently it provides electricity and gas transmission, distribution services and market support services to more than a million customers in Singapore. It is one of the largest corporations in Singapore. SP PowerGrid, a member of Singapore Power Group, manages Singapore’s electricity and gas transmission and distribution networks. It uses cutting-edge technology to deliver highly reliable and efficient energy supply to industrial, commercial and residential customers.

SP owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, and district cooling businesses in Singapore and China. About 1.5 million industrial, commercial and residential customers in Singapore benefit from SP’s transmission, distribution and market support services. These networks are amongst the most reliable and cost-effective worldwide. SP also drives digital solutions to empower customers to manage their utilities, reduce consumption and save cost. In 2014, Singapore Power won the ‘Smart Grid Project of the Year’ award at the Asian Power Awards, for its programme with California-based Silver Spring Networks to enable deregulated energy services in Singapore. This was enabled by SP’s successful deployment of a smart infrastructure networking platform, with nation-wide coverage, through Silver Spring’s IPv6 technology. Through the deployment of new technology, SP has allowed customers to have more choice and to better manage their energy usage.

Green Koncepts is a fast growing and innovative Singaporean company creating smart and connected eco-systems through disruptive innovation. Built for the Internet of Things (IoT) and to enable co-innovation, Green Koncepts’ platforms seamlessly connect any devices such as smart grids, rapidly develop applications and easily manage real time data. The technology allows connecting sensors, meters, controllers, building management systems, and other IoT devices, as well as leveraging an eco-system of partner solutions for data analytics and other innovative solutions. Boasting more than 12,000 connected nodes on its platform and more than 800 million transactions of data streaming through its systems daily, Green Koncepts tracks energy consumption for companies using a cloud-based IoT system. It has a suite of energy management solutions that it has created specifically to be as easy to use, install and manage in order to help individuals and businesses visualise, manage and optimise their energy usage.

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Energetix™ is Green Koncepts’ award-winning cloud energy management application that drives behavioural change and optimises energy efficiency for cities, buildings, data centres, offices and homes. The technology drives the convergence of sensor data, applications and people in a single smart connected eco-system.

Intraix was founded in 2012 in Singapore to tackle hurdles concerning energy consumption and efficiency. It is a low-cost home energy management system that helps reduce energy consumption for residential households and small businesses. Intraix’s solutions analyse the main energy metering data to derive appliance-level energy breakdowns without incurring hardware costs of installing smartplugs at individual appliance plugpoints. Households can save up to 60% of energy costs as compared with the traditional Home Energy Management System.

Figure 32: Klug Home Plugged into a Router Source: Intraix

With a simple USB dongle, called Klug Home, users can monitor the energy-consumption of domestic devices, as a smart grid does. The app lets users do anything from monitoring energy consumption and the corresponding cost, to turning appliances on and off. Intraix built Klug so it can work with a broad range of devices, from various air conditioner brands to smart lamps to fitness wearables to Amazon’s Echo and Google’s Nest devices.61

61 An energy start up from Singapore gets you started on your smart home, 2016, Tech in Asia

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Diamond Energy is a company specialised in Demand Responses and Smart Grid services in Singapore. Established in 2011 by a former employee of the U.S. utility company Duke Power, Diamond Energy is the first Wholesale Trade in the National Electricity Market of Singapore (NEMS). The company offers smart energy solutions to its customers. Within the smart grid sphere Diamond Energy provides services in Demand Responses by applying Interruptible Load solutions which allow customers to reduce or shift their power usage in exchange for payments during the periods of peak demand or forced outages of power generation plants. The services enable stability in electricity grids during the occurrence of abnormal events, hence reducing the need to construct new peaking power plants.

With the Interruptible Load scheme being implemented in NEMS, customers are paid in return of allowing a portion of their electricity supply on standby for temporary interruption. Diamond Energy is the largest Interruptible Load Aggregator and it has been working with the industrial and manufacturing sectors to participate in the Interruptible Load scheme since 2006.62 It works with industrial and manufacturing sectors to participate in the scheme, and to date offers the most comprehensive application of Demand Response solutions in the country as the only aggregator offering all classes of reserve in NEMS. It is also an active player in Vietnam.

3.5.2 EU Entry Opportunities

◼ Singapore has invested steadily in research in smart grid technologies in the past decade. These investments have supported a strong base of researchers with expertise in the smart grid and power electronics domain. As such, Singapore has become a dynamic location for test-bed activities related to smart grids developments, and the government is keen to attract foreign companies to undertake R&D activities in the country. European companies planning on embarking into R&D activities may find Singapore to be an interesting ‘living laboratory’ for testing and commercialising new ideas, before scaling it up for the Singapore market and the region.

▪ For example, a testbed of smart grid in Singapore is the Agency for Science, Technology and Research’s (A*STAR) Experimental Power Grid Centre (EPGC) located in Jurong

62 Smart solutions for a smart nation, 2016, The Business Times

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Island. The S$ 38 million (EUR 24.6 million) facility is a centre designed for cutting-edge smart grid solutions. The smart grid research centre has a 1 MW capacity and is working closely with government agencies to attract companies to perform R&D activities under the Smart Grid Programme. The Smart Grid Programme is also open to companies that are interested in collaborating to develop the communication, analytical, and intelligent aspects of the grid. During its official opening in 2011, the agency announced several collaborations with industry partners such as the collaboration with SP PowerGrid to safeguard reliable power supply and three different MOUs with the Housing and Development Board (HDB), Meidensha Corporation of Japan and the U.S. firm National Instruments. HDB aimed to look at the feasibility of renewable energy efforts for public housing in the country, while Meidensha Corporation Japan, a Japanese electric appliance manufacturer, seeks to implement high efficiency control technology for advanced medium voltage inverters to be used in industrial pumps and fans, and National Instruments planned to develop advanced measurement and control technologies for smart grids.

▪ In 2016, Singapore Power signed five partnerships with private sector companies worth S$ 10 million (EUR 6.5 million) on smart grids and data analytics projects. The Singapore’s electricity utility company teamed up with 3M on grid sensing, and worked on analytics with NEC Asia Pacific and Space-Time Insight. The company stated that these projects will provide predictive alerts on electricity disruptions, which will allow Singapore Power to repair infrastructure before they fail. Apart from these partnerships, the state power company also agreed to work with GE’s Grid Solutions business on substation digitalisation. The work done with GE is expected to provide customers with the choice of using renewable energy. Singapore Power also partnered with IJENKO and OMNETRIC Group to build smart energy and analytics platforms. These platforms will use analytics to gain insight into customers’ behaviour, allowing Singapore Power to tailor messages to engage customers.63

◼ European companies may take note that Singapore is currently looking for technologies that allow users to read their smart meters remotely. The companies with such

63 Singapore Power partners on smart grid and analytics, 2016, Metering & Smart Energy International

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capabilities can enter the market to offer the technologies on their own or through partnership with relevant agencies or private companies already operating in Singapore.

▪ In 2016, the Energy Market Authority, the national water agency PUB and Singapore Power called for proposals to develop and test technologies that will allow for electricity meters to be read remotely in a reliable and cost-effective way. The trial started in early 2018 and lasted for six months.64 Four companies were selected to test-bed their solutions – Germany’s Diehl Metering GmbH, local firms Mirai Electronics Pte Ltd and TCAM Technology, and China-backed ZH Technologies International Pte Ltd- out of more than 20 companies that submitted proposals. The results of the trial have not been published. However, currently electricity consumers, both businesses and households, can opt to install an advanced meter or smart meter. Consumers with advanced meters can view and download their half-hourly electricity usage via a mobile application. Moreover, in April 2019, PUB announced the roll out of the first phase of a Smart Water Meter Programme in Singapore, which will see the installation of 300,000 smart water meters in new and existing residential, commercial and industrial premises by 2023. To kick-start the rollout, PUB called a tender on 12 April to appoint an Advanced Metering Infrastructure (AMI) Specialist to evaluate and advise on meter devices and technology, communications protocol and provide insights for enhancing operational efficiency and water savings. Later PUB will call for a tender for the installation of around 300,000 smart water meters in 1Q 2020. The first smart water meters will be installed by early 2021. PUB will review the first phase rollout, build up its capabilities and expertise, and take into account advances in technology before implementing AMI for the rest of Singapore.

▪ In 2015, energy utility company Singapore Power launched the Singapore Power Centre of Excellence to develop, test, pilot and integrate smart grid technologies in the country's infrastructure networks. The centre of excellence has been launched in collaboration with the government’s Economic Development Board (EDB) to drive the innovation and commercialisation of next generation energy network technologies, for greater reliability and efficiency of Singapore’s infrastructure. The centre will test the viability of remote sensors

64 Wanted: Smart meters for households, 2016, The Straits Times

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and intelligent drones to perform monitoring tasks and will operate as a technology test-bed. New technologies will be piloted, undergo feasibility studies and will be carried through to integration into Singapore Power’s infrastructure and final commercialisation.65 In August 2016, the Singapore Power Centre of Excellence commenced collaborations with 5 industry players: Grid Sensing with 3M, Substation Digitalisation with GE’s Grid Solutions business, Smart Energy Management Platform with IJENKO, Energy Network Health Analytics with NEC and Space-Time Insight and Big Data Analytics with OMNETRIC Group.66 These research projects are expected to be completed by 2021. In April 2018, the Centre entered into a Research Collaborative Agreement (RCA) on energy-saving solutions with the Singapore Institute of Technology.67

◼ There is a growing demand for smart grids with distributed generation from green energy, and Singapore is investing considerable resources towards this area. European companies with strong background in renewable energy may collaborate with European smart building technology providers to take advantage of this opportunity in Singapore. Alternatively, they can also partner with local companies and agencies in Singapore to explore the area further.

▪ In 2013, the Energy Market Authority of Singapore unveiled the Intelligent Micro-Grid Project located on Pulau Ubin, an island northeast of Singapore, which lacks proper access to electricity. The intelligent micro-grid serves as a test-bed for smart technologies applicable on micro-grids with distributed generation from clean and renewable energy resources. The project provides affordable, reliable and clean electricity for residents rather than having to use their own diesel generators which are inconvenient, causing pollutions (air and noise), and expensive. In the process, the intelligent micro-grid provides opportunities to develop local capabilities in smart grid technology designs, system integration, and management of intermittent renewable energy sources that can be connected to main electricity grid.

65 Singapore Power opens centre for smart grid energy network, 2015, Metering & Smart Energy International 66 Singapore Power Centre of Excellence commences collaboration with 5 industry partners, 2016, SP Group 67 SP GROUP and SIT sign research agreement, 2018, Singapore Institute of Technology

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▪ Singapore’s Nanyang Technological University (NTU) is setting up South East Asia’s first micro-grid facility, which will demonstrate how to generate electricity from multiple sources including solar, wind, tidal, diesel, as well as integrate energy storage and power-to-gas technologies. The project, called Renewable Energy Integration Demonstrator-Singapore (REIDS), is being constructed on an offshore island at Semakau Landfill, on Pulau Semakau. For the first phase, NTU will build the micro-grid facility and integrate energy storage facilities, solar photovoltaic panels and wind turbines through a variety of smart energy management and storage systems.

◼ There are also opportunities for the European companies in providing Demand Response technologies to support other strategic initiatives concerning renewable energy in Singapore such as SolarNova, a programme which pursues solar photovoltaic opportunities from the public and private sector spaces. The Demand Response technologies are seen to be able to address the intermittency problem coming from solar power supply, as well as other green and renewable power supply. As Singapore is gearing towards that direction more alternative and complementary technologies would be reed, creating prospects for such technology providers to enter the market.

◼ Distributed energy systems and digitalisation are shaping future energy systems, and this is posing new challenges but also creating new opportunities for grid operators in Singapore. Transparency about generation and consumption, costs, and power quality are becoming increasingly important as a result. It is this knowledge that will pave the way for making the adjustments needed to optimise grid efficiency and supply security. As such, there are opportunities for providers of energy management solutions as well as analytics.

◼ Beyond Singapore, South East Asia is a growing smart grid market that continues to show extensive progress and promises significant benefits for consumers and large opportunities for vendors by the end of this decade. Countries in the region continue to grow and electrify quickly, accelerating the benefits of smart grid and spurring governments to develop smart grid roadmaps and deployment plans.68 The South East Asia region is expected to invest

68 Southeast Asia Smart Grid: Market Forecast (2016 – 2026), 2016, northeast group

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US$ 24.6 billion (EUR 21.9 billion) in smart grid infrastructure between 2016 and 2026.69 In 2018, the ASEAN-German Energy Programme for ASEAN (AGEP) – a jointly implemented project by ASEAN Centre for Energy (ACE) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) – launched the Study on Smart Grid Overview in ASEAN.70 The Study elaborates on recommendations to apply smart grids in the ASEAN Member States, in order to establish reliable and cost-effective power supply while also achieving the regional renewable energy target of 23% share in the total primary energy supply by 2025.

European Players

Schneider Electric

Schneider Electric is a company that specialises in energy management and automation solutions, spanning hardware, software, and services. The company is headquartered in Rueil- Malmaison, France. Schneider Electric provides utilities with a complete smart grid solution - from control centre to customer - to help improve safety, reliability and efficiency.

Schneider Electric is at the forefront of taking organisations in Asia on their first step towards Industrial Internet of Things (IIoT). For example, utilising cutting-edge technology, Schneider Electric’s Batam smart factory is both a working factory and a showcase for customers and partners to witness how digital transformation can help them make informed, data-driven decisions that bring about improved profitability, asset management performance, operational efficiency and a smarter productive workforce while keeping the operations secure, agile and environmentally sustainable. The Smart factory in Batam has become a kick starter for companies in Asia to implement Industry Internet of Things (IIoT), with more than 150 customers and partners from Indonesia, China, Singapore, Vietnam, Malaysia, Myanmar and Middle East having visited the factory.

In 2017, the company introduced PowerTag, the smallest wireless power meter available in Singapore. Designed to enhance the monitoring and security of electrical assets, PowerTag aims

69 Southeast Asia Smart Grid: Market Forecast (2016-2026), 2016, PR Newswire

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at simplifying the connectivity of individual breakers to a Building Management System (BMS), providing building owners and facility managers with precise and real-time data to increase the health of a facility’s strategic assets. Designed for medium and large buildings, the energy sensor monitors and measures energy use, currents, voltages, power and power factor. This first of its kind connection enables greater security of electrical assets by providing the ability to better manage critical loads - leading to higher reliability and efficiency of the electrical installation. Data is sent wirelessly to a concentrator to display the data via webpages, or within a larger BMS. Data can also be leveraged to create customised e-mail alarms to assist facility managers with remote monitoring of the assets.

Figure 33: The Vice President of Energy Business Unit at Schneider Electric Singapore Source: Schneider

Siemens AG

Siemens AG is a German conglomerate company headquartered in Berlin and Munich and is the largest manufacturing and electronics company in Europe with branch offices abroad. The principal divisions of the company are Industry, Energy, Healthcare, and Infrastructure & Cities.

Singapore’s power grid is currently being supported by the Energy Management Systems of Siemens. Siemens supplied the metal-clad sulphur hexa-fluoride (SF6) gas insulated switchgear to raise power distribution efficiency at the 230 kV substations at Kampong Java, Senoko, Ayer Rajah, Labrador and Jurong Pier and the 66 kV Ann Siang Hill substation. Monitoring and

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controlling Singapore's entire 22 kV power distribution network is the state-of-the-art SCADA system jointly developed by the former Public Utilities Board and Siemens.

In 2016, global engineering and project management consultancy, Meinhardt Group International, signed a memorandum of understanding (MoU) to collaborate on technology with the Singaporean arm of Siemens. Their partnership focused on engineering and urban solutions, as well as collaborations in areas such as intelligent building technologies, building performance and sustainability, airports and seaports, data centres, rail and road transport, and power and smart grids. With the support of Singapore Economic Development Board, Meinhardt operates Singapore’s Smart Cities Centre of Excellence (CoE) and the collaboration with Siemens aims at supporting the CoE’s development of new smart city solutions.

ABB (ASEA Brown Boveri)

ABB (ASEA Brown Boveri) is a Swedish-Swiss multinational corporation operating mainly in robotics and the power and automation technology areas. ABB technologies for smart distribution networks and buildings include smart meters, building automation systems, electric vehicle charging equipment, low-voltage solar inverters, high-efficiency distribution transformers; substation and feeder automation.

ABB was established in Singapore in 1971 and has a staff strength of over 1,200, across four offices island-wide. ABB‘s offices in Singapore serve the local and regional markets, with leading market positions in most key product areas. ABB in Singapore is also a member of several associations and sustainability initiatives such as the Singapore Green Building Council, Eco-Office Label, and the Singapore Green Building Product.

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4. Regulations

4.1 General Import Procedures

As an open market, products and services can enter and exit Singapore relatively freely. All goods imported into Singapore are regulated under the Customs Act, the Goods and Services Tax (GST) Act and the Regulation of Imports and Exports Act. Imported goods are subject to GST and/or duty payment. A Customs permit is required to account for the import and tax payment of the goods. The current GST rate is 7%. GST is calculated based on customs value of the goods, plus all duties. Before the actual importation, the importer is required to obtain a Customs permit, to account for the import and the tax payment of the goods.

Importing Trade Samples71

The Singapore Customs defines trade samples as the goods imported solely:

◼ For the purpose of being shown or demonstrated in Singapore to enable manufacturers in Singapore to produce these goods to fulfil orders from abroad or to solicit orders for goods to be supplied from abroad, or

◼ By a manufacturer for the purposes of copying, testing or experimenting before producing these goods in Singapore.

Trade samples should not be sold, consumed, put to normal use, or used for hire or reward in Singapore. Importers of trade samples that are supplied without cost or free of charge must pay GST and/or duty. The relevant import permit (if required) and supporting documents (for example, commercial invoice, packing list, Bill of Lading/Airway Bill) for the trade samples must be produced to the checkpoint officers for verification at the time of cargo clearance.

71 For more info on this topic, please visit www.customs.gov.sg/businesses/importing-goods/import-procedures/importing-trade-samples

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4.2 WSH Act and Regulations for Maintenance

Under the Workplace Safety and Health (WSH) Act, manufacturers and suppliers of certain machinery and equipment must ensure that they are safe to use.

The following machinery and equipment are covered under the Act:

◼ Scaffolds and any materials or components used to erect them.

◼ Lifting equipment.

◼ Forklifts.

◼ Power presses.

◼ Bar-benders.

◼ Equipment or piping intended for use under pressure, including all statutory pressure vessels.

◼ Equipment or piping containing corrosive, toxic or flammable substances.

◼ Welding equipment, including any accessory, apparatus or fitting necessary to enable its use.

◼ Materials or components used for the construction of support structures.

◼ Explosive powered tools.

◼ Equipment used for abrasive blasting, including any accessory, apparatus or fitting necessary to enable its use.

Manufacturers or suppliers must ensure that any machinery and equipment or hazardous substances are safe.

It is mandatory:

◼ To provide information on health hazards and how to safely use the machinery, equipment or hazardous substance.

◼ To examine and test the machinery, equipment or hazardous substance to ensure that it is safe for use.

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◼ To provide results of any examinations or tests of the machinery, equipment or hazardous substances.

Another subdivision of the WSH Act is the WSH (Construction) Regulations 2007, which apply to all worksites in Singapore. The act, among others, covers the general provisions on safety and health issues concerning machineries and structures as well as construction activities found in worksites, including excavation and tunnelling works, formwork structures, demolition, disposal of materials, electrical safety, compressed air environment, explosives, cranes, employee’s lifts and material handling machinery.

Building construction and maintenance matters are also regulated under the Building Control Act and Regulations in Singapore. Under the Building Control Act there are general provisions related to the control of building works from the construction application phase up to enforcement and administration of a building throughout its lifetime until the demolition stage. Environmental sustainability measures for existing buildings are also described under the act.

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4.3 Building Materials

Singapore regulates that no person shall use or cause to be used in any building works any of the following materials without the permission of the Commissioner of Building Control:72

◼ High alumina cement;

◼ Aggregates which have potential for alkali-carbonate reaction or alkali-silica reaction for concrete works, including all other volcanic rocks or aggregates deriving from volcanic rocks;

◼ Admixtures containing calcium chloride.

The Commissioner of Building Control may, at any time in writing, direct the supervising qualified person appointed in respect of any building works or the builder thereof to furnish to the Commissioner of Building Control within 14 days from the date of receipt of such written direction:

◼ Samples of the materials used in the building works;

◼ Information on the source thereof;

◼ Specifications of the materials;

◼ Reports of tests carried out on the materials, and the supervising qualified person or builder shall comply with such direction.

72 Building Control Regulations, Part IV

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4.4 Government Tenders

Singapore’s government tenders are open to international companies. A foreign company is required to register on GeBIZ (www.gebiz.gov.sg), which is the procurement portal for the government, as a GeBIZ trading partner before they can participate in any electronic tenders and quotations. Information on contracts and tenders available in Singapore can be found on the GeBIZ portal as well as at industry briefings.

With many international companies already present in the country, European companies that are new to the market may want to look for potential partners readily established in Singapore that can contribute to the local knowledge to license their technology or form an alliance/consortium to jointly bid for projects.

GeBIZ Trading Partners

All local and foreign suppliers are required to register on GeBIZ as a GeBIZ trading partner prior to responding to electronic tenders and quotations. A supplier that is registered with the Accounting and Corporate Regulatory Authority (ACRA) will be approved immediately. Registration is free for the first account, while each additional account costs S$ 280 (EUR 185) per year (inclusive of GST). Apart from enabling partners to bid and tender for projects on GeBIZ, the account will also give access to archives of tender and quotation awards.

Government Procurement

Each ministry, statutory board or department is in charge of procuring its own goods and services. Some agencies also purchase common goods and services used by the entire public sector such as IT security services, courier services and paper. These agencies are the Expenditure and Procurement Policies Unit (EPPU), Defence Science and Technology Agency, and Infocomm Development Authority of Singapore.

Private procurement, private tenders and quotations are often advertised through the companies’ and organisations' websites. Otherwise, there are also portals such as the Singtel myBusiness

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Trading Board (mybusiness.singtel.com/trading-board), which is an e-procurement portal for businesses. Partnered with the company SESAMi, the portal offers products and services from the largest enterprises in Singapore, including Singtel, Singapore Airlines, ST Electronics and OCBC bank.

The government procures goods and services through three procedures:

Small Value Purchases up to S$ 3,000 (EUR 1,945)

The government will buy directly from suitable suppliers with prices reflecting fair market value. The agency requiring the product or service would normally ask around for quotations and undertake direct purchase. These small value purchases are not publicised on GeBIZ. Sourcing methods include verbal or written quotes, off-the-shelf purchase, and the GeBIZ Mall Catalogue.

Invitation to Quote S$ 3,001 to S$ 70,000 (EUR 1,945 to EUR 45,383)

The government will publish an online quote on GeBIZ to invite suppliers to quote. All suppliers registered with GeBIZ can submit a quote on GeBIZ. Sourcing methods include Invitation to Quote (ITQ), Request for Quotation (RFQ), Period Contracts and Framework Agreements.

Invitation to Tender Above S$ 70,000 (EUR 45,383)

Only GeBIZ trading partners can tender for projects. There are three tender categories:

◼ Open – all interested parties can bid, with tenders posted on GeBIZ.

◼ Selective – Applicants are shortlisted through a pre-qualification exercise, with tenders posted on GeBIZ.

◼ Limited – tenders are by invitation only as they concern national security or are impractical for open tenders.

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5. Annex

5.1 List of Useful Contacts

Agency for Science, Technology and Research (A*STAR) 1 Fusionpolis Way #20-10 Connexis North Tower Singapore 138632 Tel: +65-6826 6111 Fax: +65-6777 1711 Email: [email protected] Website: www.a-star.edu.sg

Building and Construction Authority (BCA) 52 Jurong Gateway Road #11-01 Singapore 608550 Tel: +65 6534 0219 Fax: +65 6334 4287 Email: [email protected] Website: www.bca.gov.sg

Government Technology Agency of Singapore (GovTech) 10 Pasir Panjang Road #10-01 Mapletree Business City Singapore 117438 Tel: +65 6211 2100 Fax: +65 6211 2222 Email: [email protected] Website: www.tech.gov.sg

JTC Corporation The JTC Summit 8 Jurong Town Hall Road Singapore 609434 Tel: +65 6560 0056 Fax: +65 6565 5301 Email: [email protected] Website: www.jtc.gov.sg

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Ministry of National Development (MND) 5 Maxwell Road #21-00 & #22-00 Tower Block, MND Complex Singapore 069110 Tel: +65 6222 1211 Fax: +65 6325 7254 Email: [email protected] Website: www.mnd.gov.sg

Ministry of Trade and Industry 100 High Street #09-01 The Treasury Singapore 179434 Tel: +65-6225 9911 Fax: +65-6332 7260 Email: [email protected] Website: www.mti.gov.sg

Singapore Contractors Association Limited (SCAL) 1 Bukit Merah Lane 2, Construction House Singapore 159760 Tel: +65 6278 9577 Fax: +65 6273 3977 Email: [email protected] Website: www.scal.com.sg

Singapore Renovation Contractors and Material Suppliers Association (RCMA) Blk 57 Geylang Bahru #01-3501 Singapore 330057 Tel: +65 6443 0540 Email: [email protected] Website: www.rcma.com.sg

Urban Redevelopment Authority (URA) 45 Maxwell Road The URA Centre Singapore 069118 Tel: +65 6221 6666 Email: ura.sg/contactus Website: www.ura.gov.sg

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5.2 Starting a Business in Singapore

Why Singapore?

Singapore’s high ranking as the world’s easiest place to do business makes it an attractive investment destination. Its high standard of living, high quality education, advanced infrastructure and technology and low crime rates makes it a popular global city in which to work and live.

Singapore welcomes individuals and corporations that are interested in doing business in Singapore. Many global corporations chose to locate their headquarters in Singapore because of its political stability, attractive corporate tax rates, as well as the strength of its legal and financial system. Due to its strategic geographical location, there is an unwavering preference for Singapore as a location for business expansion efforts.

Registering your business

It is easy to register a business, including foreign branch offices, online at Bizfile73 by the Accounting and Corporate Regulatory Authority74.

Generally, European companies have the following options for business formation:

◼ Singapore Subsidiary - a locally incorporated company with the foreign parent company as a shareholder. Singapore allows 100% foreign shareholding. The company is entitled to local government incentives and privileges of tax treaties, which satisfies the qualifying conditions. It will be subjected to local corporate tax rates, has a separate legal identity and its liabilities do not impact the foreign parent company.

◼ Branch Office – a locally registered entity that acts as an extension of the foreign parent. Therefore, its liabilities are extended to the parent company. The revenue generated locally will be subjected to tax. It will be taxed at the prevailing local tax rate although it is a non- resident for tax purposes.

73 www.bizfile.gov.sg 74 www.acra.gov.sg

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◼ Representative Office – This type of entity is for the purpose of market research, administrative or liaison purposes only. It cannot engage in revenue generating activities. This entity is a transitory arrangement only because the registration is valid for one year, renewable for up to 3 years maximum; thereafter it must graduate to a subsidiary or branch office to continue its operations in Singapore.

Business Registration Procedure

All businesses must be registered with the Accounting & Corporate Regulatory Authority (ACRA). This includes any individual, firm or corporation that carries out business for a foreign company. The first step is to seek the ACRA’s approval of the name of the corporation, which can be done online.

Once the name is approved, the registration papers and information can be e-filed with ACRA for the registration of the foreign company. The following documents have to be submitted as well for registration:

◼ A certified copy of the corporation’s certificate of incorporation in its place of incorporation or origin, or a document of similar effect

◼ A certified copy of the corporation’s certificate of change of name or a document of similar effect (if applicable)

◼ A certified copy of its charter, statues, or memorandum and articles of association or other instrument constituting or defining its structure

◼ A list of its directors stating their names, residential addresses, nationalities, passport numbers, occupations and dates of appointment as directors

◼ A memorandum of appointment of agents together with an affidavit. There must be at least two agents who must be Singapore citizens, permanent residents or holders of valid Employment Passes.

◼ Notice of the location of the corporation’s registered office in Singapore to which all communications and notices may be addressed.

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A Singaporean address for the business will be needed during the business registration. Businesses that do not require a physical premise can provide virtual addresses, which are offered by many professional service providers. As for businesses that require a physical premise, the individual or company can choose to operate from a home office, retail outlets or flatted factories depending on the nature of the business. Premises must be operated in accordance to the approved business use by the relevant authorities. The body monitoring the requirements of the Companies Act (CA) is ACRA.

Government Agencies

The Singapore government provides support and assistance in all kinds of aspects to help businesses grow in Singapore. European companies looking to set up, operate and establish a business in Singapore will find it easier with assistance from the following government agencies:

◼ Economic Development Board (EDB) – Provides comprehensive investor support and ensures a first-rate pro-business environment in Singapore. It initiated the Global Investor Programme to help international corporations set up and operate businesses in Singapore. Contact Singapore, an alliance of the EDB assists in this programme by linking up entrepreneurs and investors with local business networks as well as facilitating a range of immigration processes for their entry and stay in Singapore. Further information regarding the business opportunities of the programme as well as the application process and requirements is on the EDB’s page or Contact Singapore’s webpage.

◼ Accounting and Corporate Regulatory Authority (ACRA) – ACRA oversees the registration and regulation of business entities and public accountants, and also provides information on new business structures, compliance requirements and corporate governance practices.

◼ SMEPortal.sg (by Enterprise Singapore) – An EnterpriseOne portal that makes an ideal one- stop site for enterprises looking to start, sustain and grow their businesses. It features links to government information and services as well as industry help and how-to guides.

◼ Ministry of Manpower – a government Ministry which provides the formulation and implementation of labour policies related to the workforce in Singapore. The ministry

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oversees matters related to immigration, issue of Employment Pass (EP) or working visas to foreign talent and work permit transactions. Its website also contains information pertaining to labour, wages and employment in Singapore.

Business Locations

Businesses have a variety of options to find a commercial premise that best meets one’s needs. This includes the heart of Singapore’s latest financial and business district in the Marina Bay Financial Centre to suburban offices in Jurong Lake District, Tampines and Paya Lebar.

In the industrial space market, there are developers like Ascendas, Mapletree and Soilbuild that offer many contemporary space options, from stack-up factories with dedicated loading and unloading bays to spaces for wet laboratories and research activities. Government bodies like HDB and JTC Corporation also provide industrial land and space options for industrialists engaging in high value added industrial activities in Singapore. An example of an innovative and environmentally-friendly industrial space concept is JTC’s multi-tenanted Surface Engineering Hub which aims to minimise water and carbon footprint for companies engaging in electroplating and other similar processes.

JTC also develops specialised industrial parks in Singapore like the Seletar Aerospace Park, Tuas Biomedical Park and Jurong Island to support the growth and development of key manufacturing sectors. Such specialised industrial parks provide industrialists with the necessary supporting infrastructure and allow industrialists to leverage the potential synergies by being clustered together. These specialised industrial parks in Singapore have proven to be attractive to companies and remain a cornerstone of Singapore’s industrial development.

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Finding a Distributor in Singapore

One good way to establish a local presence is by working with agents and distributors in Singapore. Qualified agents and distributors can be found for nearly all kinds of products. A number of Singapore-based agents cover the ASEAN region as well as Singapore.

Singapore-based trade associations, chambers of commerce, and foreign commercial offices within EU member-state embassies are all good places to start the search for a distributor in Singapore. International business consultants with experience in helping foreign companies can also provide invaluable by facilitating introductions to qualified distributors. It is always best to meet a prospective distributor in person, and to check references.

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5.3 Useful Statistics

Exporters Imported value in Imported value in Imported value in Imported value in Imported value in 2014 2015 2016 2017 2018 World 1,126,788 841,378 723,010 997,147 886,498 Malaysia 259,607 168,637 229,781 586,892 473,216 Japan 186,097 200,575 160,357 139,406 147,313 China 102,511 156,758 106,533 63,637 82,552 Indonesia 113,425 90,654 77,264 76,270 78,321 United States of America 13,024 11,599 12,082 21,022 24,769 Thailand 23,641 22,960 11,689 19,278 15,714 Taiwan 52,919 36,711 13,893 12,328 10,645 Vietnam 140,675 59,358 46,810 41,371 8,966 Myanmar 15,125 4,497 2,643 3 6,169 United Kingdom 6,820 6,583 5,383 3,247 6,166 Table 6: Imports of Earths and Stone; Plastering Materials, Lime and Cement into Singapore Source: ITC Trade Map Unit: US Dollar Thousand

Importers Exported value in Exported value in Exported value in Exported value in Exported value in 2014 2015 2016 2017 2018 World 80,916 63,765 49,911 53,341 67,225 Indonesia 30,648 27,024 21,946 20,392 20,527 Malaysia 13,881 10,281 10,797 11,317 14,050 Thailand 7,155 4,393 4,017 2,860 5,690 India 1,071 481 1,256 1,946 4,155 China 1,230 2,916 1,506 3,956 3,683 Australia 925 1,206 839 1,866 2,926 New Zealand 340 287 42 733 2,395 Taiwan 2,379 227 666 930 2,251 Vietnam 5,673 5,297 1,820 1,543 2,245 Bangladesh 943 356 1,337 1,297 1,562 Table 7: Exports of Earths and Stone; Plastering Materials, Lime and Cement from Singapore Source: ITC Trade Map Unit: US Dollar Thousand

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Exporters Imported value in Imported value in Imported value in Imported value in Imported value in 2014 2015 2016 2017 2018 World 576,154 486,902 446,905 424,719 421,892 Malaysia 212,142 183,007 171,138 160,546 165,826 China 161,585 136,524 118,029 100,245 96,851 Indonesia 90,585 75,732 66,802 60,067 69,146 Vietnam 14,221 11,288 17,033 11,056 15,285 Myanmar 10,277 9,949 6,795 7,500 6,213 Thailand 9,379 8,874 7,281 5,246 5,559 Italy 3,296 4,986 2,791 4,023 5,130 Germany 7,195 7,656 5,184 4,854 5,108 United States of America 10,190 7,705 8,289 6,287 5,005 New Zealand 3,508 3,588 4,232 3,286 4,817 Table 8: Imports of Wood and Articles of Wood; Wood Charcoal into Singapore Source: ITC Trade Map Unit: US Dollar Thousand

Importers Exported value in Exported value in Exported value in Exported value in Exported value in 2014 2015 2016 2017 2018 World 127,965 95,180 73,354 98,163 91,185 Malaysia 21,622 12,777 12,377 15,235 19,088 Maldives 6,718 12,851 8,328 7,211 12,401 China 21,720 6,937 3,316 28,348 9,099 Indonesia 10,964 10,112 6,289 6,002 5,993 India 2,309 2,878 2,496 2,781 5,217 United Kingdom 394 681 1,232 3,343 4,584 Netherlands 3,019 2,419 3,522 2,876 4,062 Australia 7,051 4,439 4,544 3,664 3,971 Thailand 5,731 4,183 3,121 4,598 3,394 United States of America 2,166 2,211 1,181 2,342 2,260 Table 9: Exports of Wood and Articles of Wood; Wood Charcoal from Singapore Source: ITC Trade Map Unit: US Dollar Thousand

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Exporters Imported value in Imported value in Imported value in Imported value in Imported value in 2014 2015 2016 2017 2018 World 757,474 770,959 643,903 574,342 657,321 Malaysia 411,822 446,837 347,672 279,175 353,553 China 101,035 94,999 90,339 72,049 79,744 Japan 37,931 36,821 30,594 36,254 40,718 United States of America 30,327 27,964 31,740 25,983 30,122 Germany 17,427 15,012 15,278 18,819 21,193 Indonesia 9,722 22,925 12,937 29,749 16,891 Italy 16,198 13,782 13,143 9,557 12,925 Thailand 15,557 13,704 13,855 12,971 12,588 Republic of Korea 10,700 7,506 8,834 10,031 9,283 United Kingdom 11,119 7,508 6,529 8,560 9,095 Table 10: Imports of Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials into Singapore Source: ITC Trade Map Unit: US Dollar Thousand

Importers Exported value in Exported value in Exported value in Exported value in Exported value in 2014 2015 2016 2017 2018 World 144,989 127,011 120,734 111,267 137,235 Malaysia 20,724 24,026 35,100 25,136 36,433 Indonesia 20,033 20,982 15,880 14,607 15,693 Taiwan 18,091 11,864 13,373 11,941 14,423 China 8,865 11,634 6,432 7,296 9,610 Thailand 8,308 7,226 7,050 6,028 7,756 Republic of Korea 3,866 2,893 5,381 5,193 6,737 Australia 6,096 6,757 5,836 5,847 6,455 Hong Kong 11,471 6,516 4,021 3,704 6,317 Vietnam 4,481 4,167 5,382 4,864 6,171

Philippines 3,091 3,781 3,784 4,264 5,959 Table 11: Exports of Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials from Singapore Source: ITC Trade Map Unit: US Dollar Thousand

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Exporters Imported value in Imported value in Imported value in Imported value in Imported value in 2014 2015 2016 2017 2018 World 361,641 344,713 311,949 312,941 329,329 China 144,463 142,069 126,178 121,386 123,666 United States of America 26,784 28,846 27,174 37,072 44,961 Malaysia 68,210 54,363 41,813 35,262 40,638 Japan 16,206 18,003 23,350 34,317 37,037 Italy 22,372 25,028 22,815 23,901 23,117 Germany 11,085 10,232 9,470 7,441 9,918 Spain 6,582 5,333 6,149 8,794 8,194 Thailand 4,326 3,964 4,422 6,509 8,059 Taiwan 10,682 11,637 9,347 8,762 5,935 Indonesia 7,250 10,072 6,627 5,141 4,407 Table 12: Imports of Ceramic Products into Singapore Source: ITC Trade Map Unit: US Dollar Thousand

Importers Exported value in Exported value in Exported value in Exported value in Exported value in 2014 2015 2016 2017 2018 World 78,716 90,104 72,749 84,161 102,603 Indonesia 19,880 18,319 11,051 11,778 14,913 China 4,241 6,410 12,503 14,390 14,683 Republic of Korea 6,032 6,662 6,239 6,293 11,813 Malaysia 12,338 12,241 10,840 13,797 11,360 Egypt 5,501 6,794 4,963 7,517 10,790 Japan 4,953 11,501 4,127 7,860 7,483 Taiwan 6,953 5,169 3,712 3,741 6,913 United States of America 1,473 2,394 3,750 5,394 6,258 United Kingdom 119 179 140 680 5,457

Thailand 2,824 1,159 1,365 1,267 2,015 Table 13: Exports of Ceramic Products from Singapore Source: ITC Trade Map Unit: US Dollar Thousand

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Exporters Imported value in Imported value in Imported value in Imported value in Imported value in 2014 2015 2016 2017 2018 World 853,670 810,338 864,486 837,091 822,956 Vietnam 218,734 270,815 325,059 367,402 338,981 China 159,292 169,820 157,754 129,858 133,990 Malaysia 75,273 66,899 69,630 75,829 82,299 United States of America 65,429 60,238 59,506 66,443 58,304 Japan 53,258 38,708 41,126 37,699 39,969 Thailand 80,324 51,298 36,817 16,806 39,719 Germany 45,706 40,763 47,754 35,325 19,678 Taiwan 42,222 18,958 24,105 19,298 17,287 Austria 4,471 12,221 23,966 15,582 14,670

France 8,896 5,626 4,895 7,877 8,623 Table 14: Imports of Glass and Glassware into Singapore Source: ITC Trade Map Unit: US Dollar Thousand

Importers Exported value in Exported value in Exported value in Exported value in Exported value in 2014 2015 2016 2017 2018 World 250,826 258,704 307,907 258,338 296,716 Republic of Korea 28,309 40,193 38,953 41,748 51,536 United States of America 10,010 29,135 36,643 36,951 38,729 Malaysia 39,601 35,073 69,943 27,921 35,703 Japan 11,657 19,543 30,462 38,180 28,544 China 29,074 22,064 23,480 19,620 27,169 Indonesia 32,372 21,214 23,176 16,849 19,786 United Arab Emirates 495 658 600 566 17,394 Australia 20,109 19,734 16,750 15,153 11,163 Taiwan 6,269 9,403 9,111 8,710 10,098

Hong Kong 13,874 14,791 13,991 12,645 8,172 Table 15: Exports of Glass and Glassware from Singapore Source: ITC Trade Map Unit: US Dollar Thousand

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Exporters Imported value in Imported value in Imported value in Imported value in Imported value in 2014 2015 2016 2017 2018 World 3,819,390 2,866,426 2,152,816 2,403,869 2,937,174 China 1,627,465 1,352,426 930,915 735,081 824,802 Japan 499,503 455,574 362,447 346,912 438,617 Turkey 18,204 5,598 5,180 186,549 236,175 Brazil 367,288 233,108 188,045 224,752 220,949 Qatar 0 0 0 50,911 185,778 Ukraine 156,509 1,010 3,987 62,777 174,109 Taiwan 200,761 148,498 115,923 117,493 128,043 Republic of Korea 229,034 107,638 88,689 81,243 117,482 Malaysia 129,419 100,187 89,948 96,242 116,774 Sweden 72,560 59,206 52,766 70,913 70,620 Table 16: Imports of Iron and Steel into Singapore Source: ITC Trade Map Unit: US Dollar Thousand

Importers Exported value in Exported value in Exported value in Exported value in Exported value in 2014 2015 2016 2017 2018 World 2,316,453 1,677,745 1,535,684 1,580,861 1,853,923 Indonesia 581,365 299,931 265,980 303,380 446,211 Malaysia 513,843 426,792 388,040 308,126 381,825 India 268,142 247,824 186,789 192,064 241,633 China 198,682 128,797 139,623 171,987 174,705 Australia 101,888 71,454 63,625 83,380 108,719 Republic of Korea 185,636 157,529 140,342 142,133 106,277 Vietnam 60,972 42,071 60,934 69,732 55,901 Thailand 68,303 28,285 37,118 36,206 50,091 Japan 46,232 33,925 37,639 37,252 45,289 Taipei, Chinese 33,500 32,424 18,728 21,071 35,461 Table 17: Exports of Iron and Steel from Singapore Source: ITC Trade Map Unit: US Dollar Thousand

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5.4 Bibliography

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Diamond Energy first to offer electricity demand response, 2017, Business Times

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Electricity market to be fully liberalised in 2018, 2016, The Straits Times

Engie opens new green energy R&D lab in Singapore, 2016, Renewable Energy Magazine

Enhancing the Development of the Electricity Futures Market, 2018, Energy Market Authority

EU-Singapore trade surpasses €100 billion landmark, 2019, European Union Delegation to Singapore

European Parliament Approves EU-Singapore Free Trade Agreement and EU-Singapore Investment Protection Agreement, 2019, Ministry of Trade and Industry

Facilitating the Deployment of Solar PV in Singapore, 2017, Energy Market Authority

First-of-its-kind Open Digital Platform for Smart City Solutions in Punggol Digital District, 2018, JTC Corporation

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HVAC Market in SEA, BCA

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IMDA, Aussie trade agency in tie-up on smart estate solutions, 2019, The Straits Times

Inaugural International Built Environment Week to Showcase Innovative Solutions and Capabilities of Participating Built Environment Firms, 2018, BCA

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MHE-Demag opens Southeast Asia’s largest crane manufacturing plant, 2017, Logistics Insight Asia

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Record Number of Firms Recognised for Improving Construction Productivity, 2017, BCA

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Construction & Building Technologies - Singapore Market Study - Page 140 of 143

SP Group Partners HDB to Study the Development of Singapore’s First Smart Energy Town at Tengah, 2018, SP Group

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