When you think of agriculture, Singapore probably does not spring to mind. For starters, the city-state is 100% urban which imports 90% of its food supply, and brings up to 250 million gallons of water a day.
Singapore is also a country of curious contradictions, so these facts would not stop the city-state from becoming the powerhouse of Southeast Asia’s agricultural sector.
It is working hard to become a regional agritech hub for Southeast Asia’s 71 million farms as they undergo rapid digital transformation which is why it is beneficial to incorporate your own agritech startup.
What Does Agritech Mean?
Agritech refers to using technology to help boost the profitability and efficiency of the agricultural sector. This includes using technology to improve crop yields, animal husbandry, and soil management.
The Current Landscape of Southeast Asian Agriculture
As odd as it sounds, farming and agriculture in Southeast Asia need a digital overhaul.
While the region has some of the lushest and most fertile lands on the planet, the sector suffers from fragmentation and inefficiencies.
Southeast Asia’s smallholder farmers, who are the majority of the region’s agricultural workforce, are often affected by:
- Inadequate infrastructure
- Limited access to financing
- A lack of knowledge about best modern practices
As a result, agriculture’s average share of GDP in Southeast Asia contracted from 12% in 2020 to 10.3% in 2023.
The good news is that digitisation can reverse this trend as there is a fresh opportunity for Singaporean agritech startups which will help them.
How Singapore Can Use Agritech to Help Farms in Southeast Asia
Singapore believes in two things:
- Agritech can help mitigate some of these challenges by empowering farmers with information and technology
- Singapore is in a unique position to provide these solutions
The first part of the plan is to provide venture capital (VC) to develop agricultural technology solutions.
Thankfully, agritech conveniently intersects the trends of interests in intellectual property (IP) ownership, and investing in business-to-business (B2B) platforms.
With over 100 VC firms in Singapore, agritech startups shouldn’t have a tough time getting funding for fertilisation.
The second part of Singapore’s agritech industry is to make itself the home for corporate innovation labs and accelerators focused on agriculture in Southeast Asia.
Many agricultural firms already have their headquarters in Singapore and have begun to create their own innovation labs in recent years. Singapore’s reputation as an agritech innovation hub will only grow with the VC partners.
Lastly, backend technologies make the digital world go round and will be essential to Singapore’s agritech ambitions.
Things like weather forecasting, plant health modelling, and credit scoring algorithms are all set to play a significant role in making Singapore the go-to place for growing agritech in Southeast Asia.
The Singapore Government is also supportive, with Enterprise Singapore (ESG) partnering with Nanyang Technological University (NTU Singapore) to launch the Singapore Agri-Food Innovation Lab (SAIL). The lab aims to “accelerate innovation and reap the growing economic opportunities in the agri-food sector”.
Singapore’s agritech journey of growth is just the beginning, but with the right mix of VCs, startups, and technology, the sky’s the limit.
Related Resource (Podcast): Episode 5: Growing Green – Agritech and Sustainability »
Singapore’s Strategic Location Makes It Ideally Positioned to Be an Agritech Hub
Beyond the infrastructure and funding, Singapore’s location alone makes it a hub for Southeast Asia’s agritech.
It is situated in the middle of a region that is home to some of the most agriculturally productive lands on earth.
Singapore’s centrality also means that it is uniquely positioned to serve as a conduit for information and technology transfer between farms in Southeast Asia.
In other words, Singapore can be the region’s agritech brains, with the farms serving as the brawn.
Singapore is politically stable, and its English-speaking population makes it a more attractive destination for talent than other Southeast Asian countries.
Being the most liveable country in the world, Singapore attracts international talent, which will be important as the agritech industry grows.
Related Read: Relooking Sustainability After COVID-19 »
Singapore Has the Potential to Modernise the Agriculture Industry
Despite its hyper-urbanised landscape, Singapore has all the potential to become a regional agritech hub. Companies like Agros, NewCampus, etc., are contributing significantly to the modernisation of agriculture in Singapore through their innovative solutions and operational capabilities.
The city-state could play a healthy role in helping to modernise Southeast Asia’s agriculture sector with the right mix of government support and private sector innovation.
Urban farms, such as rooftop and hydroponic farms, are being developed in Singapore to address the challenges of land scarcity and enhance farm productivity and sustainability.
Singapore’s Agritech Ecosystem
Singapore’s agritech ecosystem is thriving, thanks to its strategic location that offers easy access to markets in Southeast Asia and beyond. The country’s unwavering focus on innovation and technology has created a fertile ground for agritech companies to grow and flourish.
Enterprise Singapore (ESG) plays a pivotal role in this ecosystem, providing essential support to startups and small and medium-sized enterprises (SMEs) in the agritech sector. A shining example of this support is the Agri-Food Innovation Park, an 18-hectare hub located in the western part of Singapore. This park serves as a central location for agritech companies to develop, test, and refine their solutions, fostering a collaborative environment that drives the industry forward.
High-Tech Farming Solutions
High-tech farming solutions are revolutionising the way food is produced in Singapore. Companies like Sustenir and Edible Garden City are at the forefront of this transformation, utilising hydroponics and climate-controlled container farms to cultivate a diverse range of crops, including leafy greens, vegetables, and even different fish species.
These innovative solutions enable farmers to produce high-quality produce while minimising waste and reducing the environmental impact of farming. By leveraging advanced technology, farmers can now monitor and control the growing conditions of their crops with precision, ensuring optimal yields and superior quality. This shift towards high-tech farming is not only enhancing food production but also setting new standards for sustainability in agriculture.
Opportunities for Collaboration and Knowledge Sharing
The agritech ecosystem in Singapore is rich with opportunities for collaboration and knowledge sharing. Companies can form partnerships with research institutions and universities to develop cutting-edge technologies and solutions. The Agri-Food Innovation Park serves as a vibrant platform for companies to collaborate and exchange knowledge, fostering a culture of innovation and continuous improvement.
Additionally, events and conferences organised by Enterprise Singapore and other industry players provide invaluable opportunities for companies to showcase their solutions, connect with potential partners, and engage with customers. These collaborative efforts are instrumental in driving the growth and success of the agritech sector in Singapore.
Addressing the Challenges of Agritech Adoption
Despite the numerous benefits of agritech, there are still challenges to its widespread adoption. One of the primary hurdles is the high upfront cost of investing in agritech solutions. However, with the support of government agencies and industry players, companies can access funding and resources to help them overcome this barrier.
Another significant challenge is the need for skilled labor to operate and maintain agritech systems. To address this, companies can partner with training institutions to provide comprehensive training and development programs for their employees. By tackling these challenges head-on, the agritech sector in Singapore can continue to grow and thrive.
The Future of Agritech in Southeast Asia
The future of agritech in Southeast Asia is bright, with Singapore poised to play a leading role in the region’s agritech ecosystem. With its strategic location, innovative culture, and supportive government policies, Singapore is an ideal location for agritech companies to set up and expand their operations.
As the demand for high-quality produce continues to grow, agritech companies in Singapore are well-positioned to meet this demand and capitalise on the opportunities in the region. With the continued support of Enterprise Singapore and other industry players, the agritech ecosystem in Singapore is expected to continue to thrive and grow in the years to come. The future holds immense potential for agritech in Southeast Asia, and Singapore is set to be at the forefront of this exciting journey.
Grow Your Agritech Startup With InCorp
It is crucial to remember that all Singaporean companies must be registered with ACRA – the Accounting & Corporate Regulatory Authority of Singapore. This mandates adherence to all applicable rules and regulations. The registration process typically involves applying for a new company name, submitting the necessary incorporation documents, paying the required fees, and finally receiving the Certificate of Incorporation.
However, you don’t have to complete this process on your own. InCorp offers streamlined business incorporation services in Singapore, enabling you to speed up the formation of your company.
FAQs about Agritech Singapore
Why is agritech important?
- Agritech is important because it helps farmers to be more efficient and productive, protects the environment, and helps in increasing food security.
What are agritech startup companies?
- Agritech startups are companies that focus on developing technology-based solutions for the agriculture industry. For example, companies like TreeDots, Rize.Agritech is contributing significantly to the agritech industry in Singapore by offering innovative solutions that enhance operational capabilities and drive growth.
What are some examples of innovative agricultural practices in Singapore?
- Urban farms, such as rooftop and hydroponic farms, are being developed in Singapore to address the challenges of land scarcity. These farms utilise advanced technology to optimise productivity and sustainability, making them a crucial part of the city's agritech landscape.
Set up your agritech business in Singapore
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