S’pore’s water industry expected to maintain growth [News]
By Lynda Hong, Channel NewsAsia, 7 Jun 2012.
Singapore’s water industry is expected to continue its growth momentum this year.
In 2011, S$130 million worth of value-add were committed, generating 460 jobs when the projects are fully realised.
PWN Technologies is just one of the many foreign water companies attracted to Singapore’s water industry.
It set up its Asian headquarters in Singapore last year.
So far, the Dutch company said it has been fairly sheltered from the global credit crunch.
“The banks in Netherlands and in this area are interested in innovation and new technology. If you have a good plan and it can show the results of the technology, it is an interesting investment for them,” said PWN Technologies Singapore’s global marketing & communications director, Debbis Middendorp.
Singapore’ status as a financial hub also provides access to funds for expansion.
Kow Juan Tiang, group director for Environment & Infrastructure Solutions at IE Singapore, said: “If you look at the water industries in Singapore, It encompasses companies from many countries. Our financial sector encompasses many banks from many countries so Companies in venturing overseas here for projects to secure technology, solution, secure financing are at a competitive advantage compared to some of these European companies.”
Developing water technologies, attracting water companies with complementing capabilities, and getting local companies to venture beyond Singapore is also key will be key to growing Singapore’s water industry.
Besides traditional markets in Middle East, North Africa and China, South East Asia is also becoming a bigger focus as water demand is growing 30 per cent every year.
Besides drinking water, demand is also expected from the industrial sector, which offers higher profit margins.
Goh Chee Kiong, director of Cleantech Building & Infrastructure Solutions at Economic Development Board, said: “We have been hearing from companies that the margins from industrial water sector tend to be healthier. That’s why we are also encouraging our companies to diversify away from the municipality sector to the industrial sector.
“What is helping this sector is the fact that Singapore has a vibrant manufacturing industry comprising chemicals, pharmaceuticals, semiconductor, oil and gas, and they are becoming prove points and demonstration sites for water companies to utilize their technology in Singapore before scaling up to the rest of the world.”
The number of Singapore-based companies in the water industry has doubled to 100 over the past six years.
They secured over 100 international projects worth close to S$9 billion.
This is out of a market that’s worth S$614 billion globally last year.
Source: Channel NewsAsia
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