SingaporeBusinessNews_August / September 2012

Water Awareness for aSustainable FutureWater as an Engine of Economic Development and a Quality of Life Indicator

Industry FocusWCS 2012 showcases best practices for liveable and sustainable cities

Industry FocusNew Panalpina regional head office in Singapore to capture new growth

Future Ready TodayGreen Solutions in an Urban World

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Professor Asit Biswas shares his insights into water as an engine of economic development and the ways it can contribute to higher environment quality and standards of living.

Water Awareness for a Sustainable Future _

Professor Asit K Biswas is now universally acknowledged to be one of the world’s leading authorities on water management. He is the Founder and the President of the Third World Centre for Water Management in Mexico, and Distinguished Visiting Professor at the Lee Kuan Yew School for Public Policy in Singapore and Indian Institute of Technology, Bhubaneswar, India. Formerly a professor in the UK, Canada and Sweden, he was a member of the World Commission on Water, and a founder of the International Water Resources Association and World Water Council. He has been a senior advisor to 20 state governments, six Heads of the United Nations Agencies, Secretary General of Organisation for Economic Co-operation and Development (OECD), North Atlantic Treaty Organisation (NATO), and many other major international organisations. He is a Past President of the International Water Resources Association, and the International Society for Ecological Modelling. Professor Biswas is also the Founder and Co-Chair of the Club of Tokyo.

PRoFESSoR ASIT K BISWAS

SBN: Acclaimed as one of very few truly innovative thinkers in the water area, what, in your view, are the real water problems of the world?

Professor Asit Biswas: The world is currently spending hundreds of millions of dollars in promoting solutions that have not worked in the past, are not working at present, and there is no hope that they will work in the future. In a sense, we have become part of the problem, rather than the solution. Thus, the water profession needs to change its mindset urgently.

In my view, the most critical problem the water

profession is facing at present is how we can put water at the centre of national and international political agendas. In the water profession, we believe that water is one of the most important issues in the world. People have to learn that water is a means to an end and the end is not efficient water management. The ends are having better quality of life and poverty alleviation.

We have to show to our planning and finance ministers that if water is properly managed it could be an engine for economic development and can contribute to higher standards of living and better environmental quality. Only then will water become an important component of national and international political agendas.

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If water remains a minor actor in the wings, as it is at present, the progress to develop it as a resource will remain incremental at best. This is one of the most important challenges the water profession is facing at present. It is critical that water is inserted into the political agenda, an issue completely neglected at present.

Do you think we have enough water in the world to meet the needs of nine billion people by 2050?

The world is not running out of water. We have enough water to meet our current and foreseeable needs. However, what we have at present are somewhat mediocre water management practices in nearly all the countries of the world. Equally, we are not managing other sectors like food or energy properly, which need tremendous amounts of water. In my view, in many countries that are becoming important economic powerhouses, water management practices continue to be seriously substandard.

Water is a means to an end and the end is not efficient watermanagement

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We have had the necessary knowledge, technology and funds to improve water management practices for years, but we have spectacularly failed to do so for three very important reasons. First, the absence of political will. Second, people in most countries have become so used to poor-quality water management that they do not think better management is possible. And third, the water profession and the media have implicitly accepted this poor status quo.

Assuming we do manage to improve our water management practices, there is no reason why there should not be adequate water to meet all human needs up to 2050 and beyond. Fortunately, I see some progress. A city like Phnom Penh in Cambodia can now provide clean and safe drinking water to all of its citizens 24 hours a day. I am cautiously optimistic about the world’s water future.

We have had the necessary knowledge, technology and funds to improve water management practices for years, but we have spectacularly failed to do so.

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PRoF ASIT K BISWAS

What are some of the biggest water challenges facing emerging markets such as Southeast Asia and Latin America?

In South Asia — where the population is more than 1.65 billion — one would be hard-pressed to find a single town where people can drink water directly from the source without worrying about health risks. In fact, globally, there are over two billion people who do not have access to clean and safe water. UNICEF and WHO estimates claim that ‘only’ 783 million people do not have access to ‘clean’ water. This is a travesty of truth.Similarly, in emerging markets, sanitation has only been applied to the removal of wastewater from homes. Yet, cities such as Delhi and Mexico City discharge untreated wastewater into their rivers and claim to have proper sanitation. The Third World Centre for Water Management estimates that only about 10 per cent of people in Latin America have access to proper wastewater collection, treatment and disposal systems. The centre estimates that Asian developing countries have a similar level of treatment as in Latin America, and Africa somewhat less.

Globally, there are over two billion people who do not have access to clean and safe water. UNICEF and WHO estimates claim that ‘only’ 783 million people do not have access to ‘clean water’. This is a travesty of truth.

Professor Asit Biswas was also named by Thomson Reuters as one of the world’s premier ten water trailblazers, in recognition of his innovative approaches to water management — using water to advance economic development and increase sustainability.

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HOW to manage a sustainable and profitable business was addressed at the first session of the Singapore International Water Week’s CEO Forum on Sustainability.

The session was co-presented by Peter Lacy, Asia-Pacific Managing Director for Accenture Sustainability Services, Janet Ang, Managing Director of IBM Singapore, and Andrew Tan, Chief Executive Officer of Singapore’s National Environmental Agency.

Mr Lacy focused on three areas — how CEOs view sustainability, current challenges that organisations face in embracing sustainability, and commercial opportunities and new areas of growth.

On the first issue of water, he described a recent Accenture study of 756 CEOs from over 100 countries and 25 different industries. The study found that 93 per cent of CEOs saw sustainability as being very important for the future of their business. In the Asia-Pacific, this figure was higher at 98 per cent, apparently due to the day-to-day visual evidence of increasing levels of waste, shortages in energy, and depleting water resources. The survey also featured companies such as HSBC and Tata Group.

With regards to current challenges faced by companies aspiring to be sustainable, Mr Lacy noted that just 10 years ago, sustainability was about awareness and strategy. Yet, today it

Feature: Making Sustainability Profitableis about ‘execution and implementation’, and about ‘turning policies into action’. However, he was quick to point out that there is still much work needed to be done by most businesses in achieving this.

In addressing new areas of growth and future business opportunities, Mr Lacy noted that the main difference between the 1992 United Nations Conference on Environment and Development, held in Rio de Janeiro, and the recent Rio+20 conference was the level of corporate involvement. In 1992, there were very few corporate entities present; but at this year’s conference, the level of involvement from, in particular, multinational companies was significant.

Just 10 years ago, sustainability was about awareness and strategy. Today it is about ‘execution and implementation’, and about ‘turning policies into action’.

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According to Mr Lacy, the private sector now takes sustainability very seriously and as a result of this, a new world of disruptive business opportunities will arise that will be nothing short of revolutionary.

Ms Ang and IBM both view sustainability in a slightly different light.

“To IBM, sustainability is corporate responsibility,” she said. Ms Ang explained that this spans a wide range of the company’s operations, such as governance and fiscal accountability, corporate community relations, engaging in environmental affairs, and employee wellbeing.

In addition, Ms Ang gave her view of what makes a successful sustainable business. In

her opinion, companies need to incorporate environmental strategies that enhance the wellbeing of the environment, be seen as environmentally friendly, have robust internal compliance systems that ensure the company is acting sustainably, and employ a cost-effective approach to sustainability.

In addition, Ms Ang shared with delegates the results of a survey conducted by IBM and aimed at CEOs, which saw the top three drivers for sustainability in businesses as: providing a competitive advantage, providing industry leadership, and brand enhancement.

The forum continued with Mr Tan commenting that the above are not only applicable to the private sector, but also to governments and

public-sector bodies. Mr Tan was quick to observe that both private and public sectors have stakeholders that are often the same types of people. In addition, both businesses and the public sector “need leaders that really believe in sustainability”.

All three speakers concluded with the call for more leaders, from all corners of the world, to engage with sustainable models of business.

According to an IBM survey, the top three drivers for sustainability in businesses were noted as: providing a competitive advantage, providing industry leadership, and brand enhancement

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Feature: From Concept To RealityCLIMATE change, greater urbanisation and rising energy costs have seen innovative solutions being developed in Singapore. Singapore encourages water companies to commercialise technologies by testing them under real-life conditions in PUB’s facilities.

Visitors of the Water Innovations@SIWW booth at the recently concluded Water Expo had the opportunity to see some of these cutting-edge technologies. Below are some examples of the systems featured at the SIWW.

Singapore encourages water companies to commercialise technologies by testing them under real-life conditions in PUB’s facilitiesFish Activity Monitoring System by ZWEEC

Analytics Pte Ltd is an early-warning system that uses video monitoring and tracking technology. Alerts are set off when the number of dead fish reaches a preset threshold.

Parasitometer is an online real-time pathogen monitoring and identification system by Water Optics Technology Pte Ltd. The real-time system is able to rapidly detect ultra-low concentrations of waterborne pathogens in drinking water distribution systems.

Aquaporin Based Biomimetic Membranes for Water Reuse and Desalination by Aquaporin Asia Pte Ltd incorporates aquaporins, natural proteins that are highly permeable to water but highly retentive to solutes, into membranes. This optimises membranes’ water reuse and desalinisation properties.

WaterWise Network Monitoring System by Visenti Pte Ltd monitors the physical infrastructure of utilities companies and helps optimise their process operations using patent-

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protected hardware, wireless data transmission and software analytics.

Acoustic Mass Flowmeters by HydroVision Asia Ptd Ltd revolves around computational- fluid-dynamics simulations of velocity profiles using advanced ultrasound technologies and backscattering measurements.

Combined Heating Cooling and Desalination Technology by Natflow Pte Ltd combines heating, cooling and desalination processes into a single plant for sustainable low-energy desalination.

New Look

A revamped and redesigned look for the Environment and Water Industry Programme Office (EWI) website, and the inaugural version of Hydrohub.sg, a newsletter on Singapore’s water industry, were launched by Singapore’s Environment and Water Resources Permanent Secretary Choi Shing Kwok during the International Water Week at the Water Innovations@SIWW booth. Visit www.ewi.sg to learn more about Singapore’s global hydro-hub aspirations. You can also get a copy of Hydrohub.sg from EWI’s office.

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Industry Focus We spotlight the business initiatives and regulatory policies that support inter-firm linkages and develop the nation’s leading and most promising industries.

FOR the first time, the World Cities Summit (WCS), Singapore International Water Week (SIWW) and CleanEnviro Summit Singapore were held together from 1 to 5 July 2012.

The WCS saw Singapore taking the lead in encouraging cities to find new integrated solutions to resolve critical urban challenges.

Singapore’s longstanding commitment to sustainable development makes it the ideal location to exchange best practices for creating sustainable and liveable cities.

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A total of 19,000 participants from 104 countries/regions attended the convention, including more than 90 mayors and 3,200 delegates and trade visitors.

The WCS’s programme included a WCS Mayors Forum that allowed world mayors to network with other public agency CEOs and international organisation leaders, as well as the conferring of the Lee Kuan Yew World City Prize to honour outstanding urban initiatives. The summit also featured high-level discussion platforms such as Flagship Urban Solution Tracks and Plenary Sessions.

WCS 2012 showcases best practices for liveable and sustainable cities The summit saw

Singapore taking the lead in encouraging cities to find new integrated solutions to resolve critical urban challenges

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By holding the three events together, we are able to offer a truly integrated platform for the first time, for world leaders to discuss challenges, opportunities and share best practices for sustainable and liveable cities of the future

Khoo Teng Chye, Executive Director of the Centre for Liveable Cities, underscores the strategic rationale behind the co-location of the three events: “By holding the three events together, we are able to offer a truly integrated platform for the first time, for world leaders to discuss challenges, opportunities and share best practices for sustainable and liveable cities of the future.”

Alongside WCS, the fifth SIWW saw the showcasing of the latest in water technology and wastewater management, as well as the sharing of the world’s best green practices. The freshly minted CleanEnviro Summit also saw high-level dialogue and a display of initiatives focused on waste management. The co-located events were aimed at forging new business partnerships enabling the delegates to discuss financing models and new business ventures.

Chew Men Leong, Chief Executive Officer of Public Utilities Board (PUB) said, “The overall outlook for the global water industry is positive, with innovation and R&D, industrial water solutions and water reuse as the key growth areas. SIWW has managed to ride on this growth — we welcomed 13,500 participants from 99 regions and countries in 2011.”

Andrew Tan, Chief Executive Officer of the National Environment Agency said, “Awareness of the environment is growing in Asia and Singapore is well positioned to foster greater dialogue and co-operation in this area. The inaugural CleanEnviro Summit Singapore hopes to provide a platform for high-level decision makers, regulators, industry players as well as community stakeholders to come together to develop practical and innovative solutions for sustainable growth.”

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PANALPINA, one of the world’s top 10 third-party logistics providers, held an opening ceremony in July for its regional head office for the Asia-Pacific in Singapore to tap the growth potential of intra-Asia trade.

Panalpina will be relocating its current Global Chief Financial Officer, Marco Gadola, to Singapore to take on the role of Regional Chief Executive Officer Asia-Pacific. This is the first time the company has located an executive committee member in Singapore to helm operations in Asia-Pacific, a strong testimony to Singapore’s role as the leading logistics hub in Asia and the world. Panalpina’s long-term strategy is to grow business on key Asian trade lanes, especially on the Far East Westbound, Transpacific Eastbound, Intra-Asia, Asia to Latin America and Asia to Middle East trade.

New Panalpina regional head office in Singapore to capture new growth

Mr Gadola highlighted that Singapore is an attractive location to capture such opportunities due to the proximity of existing and potential regional customers headquartered here. He added that other key considerations behind Panalpina’s decision to locate its regional headquarters (RHQ) in the republic include Singapore’s political stability, its large pool of skilled and English-speaking workers, and its business-friendly environment.

“We have ambitious growth targets and there is a huge potential for us to grow in the Asia-Pacific,” said Mr Gadola. He added, “Panalpina will further develop the trade lanes connecting Asia with the old economies as well as with emerging markets, but special attention will be given to Intra-Asia. The intra-Asia trade lane is by far the most important one in the world.”

Singapore is an attractive location to capture such opportunities due to the proximity of existing and potential regional customers headquartered here

(Left) Kelvin Wong, Executive Director, Logistics, EDB(Right) Marco Gadola, Regional CEO & President, Panalpina Asia-Pacific

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With more than 40 per cent of all multinationals having Asia-Pacific headquarters that are located in Singapore, taking advantage of our proximity, Singapore is well-positioned to serve as the base to capture the growth of a burgeoning Asia.

Kelvin Wong, Executive Director of Logistics of the Singapore Economic Development Board welcomed Panalpina’s decision to open its new Asia-Pacific head office in Singapore: “We are pleased that Panalpina has chosen Singapore as its strategic partner to capture the rising intra-Asia trade and to drive its growth plans in this region. Increasingly, Singapore is a preferred location for many

manufacturers to locate their key supply chain functions and decision makers. This presents logistics companies with tremendous opportunities to grow their supply chain capabilities and to create new value for their customers’ businesses.”

Headquartered in Basel, Panalpina’s Asia-Pacific region consists of China, India, Southeast Asia, East Asia and Oceania. Mr Gadola will have the respective Area Managers, the Regional Head of Marketing and Sales, and people in strategic development and finance as direct reports. The firm currently employs 330 workers in Singapore, and a further 14 employees at its new regional head office.

Having Panalpina’s Asia-Pacific headquarters in Singapore presents logistics companies with tremendous opportunities to grow their supply chain capabilities and to create new value for their customers’ businesses

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BABY nutrition company Mead Johnson Nutrition has invested US$325 million (S$412 million) in Singapore – the largest single capital outlay in the company’s history – to continue its aggressive growth in Asia.

The investment includes a manufacturing and R&D facility, expected to be completed in 2014, as well as the US-based company’s Southeast Asian headquarters. It will also create about 180 new jobs in Singapore over the next two years, including openings for senior management, and technical and research staff.

Singapore’s central location, robust free-market economy, strong international trading links, outstanding infrastructure and well-established talent pool make it the ideal location for Mead Johnson’s state-of-the-art manufacturing and research facility.

Mead Johnson, which makes the Enfamil baby formula, will use spray dryer technology for the first time in Asia in the new Singapore manufacturing facility.

Stephen Golsby, its president and chief executive, told The Straits Times in an interview that Mead Johnson’s researchers will be working to understand the different needs of babies in the region. “As babies grow into young children, their taste buds will also change. In the Philippines, for example, the children may prefer sweeter or flavoured formulas,” he noted.

Mead Johnson invests record $412m in Singapore facility

The researchers will also focus on the mental and visual development of babies and young children, including allergy management and prevention and immunity to diseases.

Singapore Economic Development Board’s Managing Director Yeoh Keat Chuan hailed Mead Johnson’s latest investment as a move that crowns Singapore as “the baby nutrition capital in the region”.

Singapore already hosts four of the world’s largest baby nutrition companies: Pfizer, Danone, Nestle and Abbott Laboratories.

Mead Johnson, which makes the Enfamil baby formula, will use spray dryer technology for the first time in Asia in the new Singapore manufacturing facility

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Future Ready Today: Green Solutions in an Urban WorldGreen buildings are seen as the solution to reducing urban areas’ high usage of energy. There lies a challenge of implementing cost-effective solutions to increase energy efficiency and reduce emissions, without a negative impact on economic growth. This requires technological innovation, a supportive framework, and industry actors who are convinced of the green solution’s commercial viability.

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For building and infrastructure industries, their key to market dominance involves innovation and capability development

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overview OVER half the world’s population lives in cities; a figure that is expected to rise to just below 70 per cent by 20501. At the same time, climate change and its environmental impact on the world are some truly global issues. With urban areas being the main source of the world’s energy emissions, a concerted effort is needed to provide solutions to what is an ever-growing urban carbon footprint.

According to a 2008 report on energy efficiency in buildings by the World Business Council for Sustainable Development, buildings are responsible for at least 40 per cent of energy use in most countries. For many, the solution lies in ‘green buildings’ — buildings that minimise harmful emissions into the atmosphere while maximising energy efficiency.

In Asia, the world’s most populous continent and home to some of the most densely populated urban areas, the issue is particularly pressing. Creating solutions to this challenge requires a technological and material response, but the

greater test lies in making the product accessible and understandable to users. Crucially, industry actors, both private and public, need to be convinced that green solutions are affordable and economically efficient.

Competing with Emerging MarketsThe necessity and relevance of green buildings needs to be coupled with solutions that make economic sense. Increasingly, competition from industry players in emerging markets has convinced established companies in the building and infrastructure industries that their key to market dominance involves innovation and capability development. Globally, major corporate players face a situation where the costs and prices of their products and services are higher compared to their counterparts in emerging markets.

What is needed to sustain established brands is to provide them with the perception of innovation and reliability that accompanies the recognised brand’s name and that helps to ensure customer loyalty. In Singapore, one of Asia’s most developed countries, real estate developer City Developments Limited’s spokesperson believes that “greater efficiency in the use of resources such as energy, water and land will contribute to enhancing Singapore’s competitiveness in the long run.”

Savings: The Bottom LineWith expenditure on energy as the single largest outlay in commercial real estate, making buildings more energy-efficient can result in greater savings for both developers and tenants. In the past, 1 http://esa.un.org/unup/p2k0data.asp

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Countries like Singapore, conducive for R&D and regulatory structures, are an attractive proposition for private enterprises involved with urban solutions

and Social Commission for Asia and the Pacific — as taking up “as much as 60 per cent of the energy demand of modern high-rise buildings in the tropical climate.” 3

Jeremy Choy, Project Director of grade-A commercial development Asia Square believes that the efficient use of energy in green buildings means savings in utilities, and results in lower operating costs for tenants.

Adopting green-building architecture in commercial real estate has other benefits too, since it provides “healthier indoor environments

that are more conducive for occupants, thus helping tenants boost overall employee well-being, satisfaction and productivity levels.”

For companies based in developed economies, adopting green solutions can result in a long-term diminished financial outlay.

Moreover, in a global market where social responsibility is more prevalent, being perceived as an environmentally conscious actor has an intangible but equally important effect. Countries like Singapore, conducive for R&D and regulatory structures, are an attractive proposition for private

there would have been a higher initial outlay (from five to 10 per cent) to construct a building that incorporates green features. Today, the Asia Business Council’s executive director, Mark Clifford, argues that “green buildings now cost only slightly more than conventional buildings (typically zero to four per cent), and are the cheapest, quickest way that Asian countries can improve energy efficiency.” 2

Energy efficiency is particularly pressing in the tropical and sub-tropical climate — where high temperatures are the norm for the majority of the year. In these environments, the main concern facing urban real estate is space cooling. The cost of keeping a building’s interior cool is estimated by UNESCAP — the UN’s Economic

3 www.unescap.org/esd/energy/publications/Co-gen/part1ch1.pdf

2 http://www.google.com.sg/url?sa=t&source=web&cd=4&ved=0CDEQFjAD&url=http%3A%2F%2Fevents.cleantech.com%2Ftianjin%2Fsites%2Fdefault%2Ffiles%2F2-MarkClifford-SSTEC_Cleantech_Focus_2010.

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enterprises involved with urban solutions.

Going Green?A developed R&D infrastructure, combined with a strong regulatory regime in which to vigorously test new technology and services, is invaluable to companies providing urban solutions. Real estate developers seek leverage from a country’s academic and research institutes, custom-built business parks and test-bed areas, and internationally recognised certification in order to achieve energy-efficient, commercially viable constructs.

In Asia, the Singaporean model has two main drivers. One aspect is the regulatory framework driven by the Building and Construction Agency (BCA) — the national regulatory body for the building and construction industry – to test, classify and certify green buildings and urban solutions technology. The other is the concept of ‘living labs’, which are areas dedicated to

the testing, development and demonstration of new technologies. Here, corporations can work with a large pool of specialists, collaborate on R&D projects with research institutes, partner government agencies on prototype projects, or form design teams to tackle urban issues.

Strong Regulatory FrameworkEnergy 95194292Launched in 2005, the BCA Green Mark is a rating tool for green buildings that benchmarks best practices in buildings’ environmental design and performance. Depending on the level of environmental performance, buildings are graded according to four categories — rising from the basic ‘Certified’ to the highest attainable standard: ‘Platinum’. The BCA Green Mark scheme uses much of the same criteria as other green building schemes, including the US-based LEED and the Australia-based Green Star. One notable difference of the BCA Green Mark is its greater

emphasis on the building’s energy efficiency, which is essential in tropical conditions. The first office development to receive the BCA Green Mark Platinum Award, The Ocean Financial Centre4, optimises energy use and reduces emissions. The building’s triple-glazed windows (which maximise natural light and minimise heat gain), and a roof photovoltaic system (which converts solar radiation into electricity) help to achieve overall energy savings of about 35 per cent. Another recipient of the BCA Green Mark Platinum Award certification is the United World College of Southeast Asia’s Singapore campus. The building consumes over 40 per cent less energy than conventional buildings of similar size and function, and includes Singapore’s first ever solar-powered air conditioning and hot water system, which reduces carbon dioxide emissions, saves natural resources, and reduces energy bills.

To drive the industry towards developing more environmentally friendly buildings, all new buildings in Singapore as of 2008 and after, and those undergoing major retrofitting (which are above 2,000 square-metres of floor area), were required to comply with minimum green building standards. Singapore is one of the first countries in the world to mandate green building regulation. New public sector developments of more than 5,000 square-metres of air-conditioned floor area must attain the ‘Platinum’ standard, while existing public sector buildings with more than 10,000 square-metres of air-conditioned floor area must be retrofitted to the ‘Gold Plus’ standard by 2020.

BCA has also introduced a series of environmental performance-related incentive

schemes for developers and building owners. The S$100 million Green Mark Incentive Scheme for Existing Buildings encourages energy-saving modifications for older developments. These initiatives are aimed at making 80 per cent of Singapore’s building stock ‘green’ by 2030.

Thought Leadership in AsiaMaking a building ‘green’ and energy-efficient is important because it cuts down on long-term operational costs. However, the implementation of green building solutions to improve the efficiency of a building’s passive design has yet to gain mainstream following, largely due to a lack of market drivers.

“While developers recognise the benefits in going green, many are also concerned with the capital outlays that come with constructing environmentally friendly and sustainable

4 http://www.channelnewsasia.com/stories/singaporelocalnews/view/1112160/1/.html

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buildings,” reveals Kwok Yan Hoe, Deputy General Manager, Corporate Development, Keppel Land. He believes that many developers are wary of adopting wholesale the materials, design and constructions used in green buildings, perceiving them to be as yet unproven.

In the US, green buildings are a US$10 billion, 25-year-old industry. In Asia, however, they are still at a nebulous stage where the absence of industry thought-leadership in the region compounds developers’ wariness to be early adopters. Developers also “face the challenge of engaging and educating tenants on how they too can green their operations and adopt a change in mindset,” believes Mr Kwok. Rapid advances in technology, concepts and materials, that often outstrip existing industry standards and regulations, make this even more challenging.

On a macro level, companies aiming to innovate with technology, talent or services require not just adequate R&D support; they also need to showcase their products and demonstrate commercial proof of concept. The Singapore answer is to provide test beds: Integrated living labs that provide a platform for private enterprise to test innovation in the industry by working with each other and with public institutions.

Singapore’s Clean Tech Park (CTP), developed by industrial infrastructure innovator JTC Corporation (JTC) and the Singapore Economic Development Board, is a 50-hectare eco-business park next to Nanyang Technological University. It acts a test bed for organisations to demonstrate system-level clean technology solutions. For example, JTC is working with Singapore’s universities to develop a thermal façade that removes heat from the outer skin of CleanTech One, CTP’s first building. Using data from this, the team will build thermal modelling software

On a macro level, companies aiming to innovate with technology, talent or services require not just adequate R&D support; they also need to showcase their products and demonstrate commercial proof of concept

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One area where the lack of market drivers is most visible is in the adoption of integrated design and solutions. Singapore has taken shape to become a thought leader in integrated design.

4 http://www.channelnewsasia.com/stories/singaporelocalnews/view/1112160/1/.html

capable of accurately predicting the heat island effect of a given master plan. Similarly, JTC works closely with companies interested to test bed and commercialise green urban solutions at the CTP. Using Singapore as a reference site, these solutions can then be scaled up for markets in the Asia-Pacific region and beyond.

Integrated DesignOne area where the lack of market drivers is most visible is in the adoption of integrated design and solutions. The building industry, especially in Asia, is conservative, argues Owen Wee, Assistant Vice-President (Architectural) at developers Surbana International Consultants: “It is always easy to just do the same thing and… fall back to the usual way of design.” Most often, buildings are built using the same procedures, processes and people, all employed separately and usually on a siloed basis. This methodology lacks coordination. Integrated design, in contrast, attempts to integrate the different aspects at a systems level to achieve optimal energy-efficiency.

Recognising the need for integrated design, Singapore has taken steps to become a thought leader in the area. On one hand, public-sector living labs drive the market demand for integrated solutions. In the case of CleanTech One, JTC worked with Surbana International to ensure that energy efficiency was kept as a priority even at the initial stage of architecture design. The building design takes into account the direction of wind and level of sunlight so as to reduce energy consumption. In the commercial sector, Singapore shopping mall HarbourFront Centre partnered with Johnson Controls’s Building Efficiency Group — an integrated technology solutions provider — to

install a chilled water plant system within the mall. To achieve optimal performance, the water chilling system was specifically matched to the building’s cooling-load profile as well as its automation and was able to achieve more than 30 per cent reduction in energy costs for HarbourFront.

Urban SolutionsDevelopers — be they public or private — adopt a bottom-line approach to decision making. Although the cleantech industry is expected to contribute some S$3.4 billion to Singapore’s GDP, green features — technological, systems or materials — will only achieve wholesale take-up if they are environmentally and economically feasible. Singapore provides a construction environment, offering companies access to R&D research institutes, governmental assistance and an internationally recognised regulatory regime. Its unique competitive advantage comes from allowing companies to innovate, integrate and, critically, to showcase the commercial viability of their urban solutions to the people who matter.

Singapore Business News_Singapore Business News is a monthly publication that updates readers on the latest industry trends in Asia, with a uniquely Singaporean perspective. Highlights include Singaporean business stories and special opinion pieces on opportunities in Asia, how global companies are leveraging Singapore to tap into pan-Asian growth opportunities, and how Asian enterprises are globalising via Singapore. Singapore Business News also provides case studies on how Singapore partners businesses to deliver future-ready solutions.

The Singapore Economic Development Board (EDB) is the lead government agency for planning and executing strategies to enhance Singapore’s position as a global business centre. EDB dreams, designs and delivers solutions that create value for investors and companies in Singapore. Our missions is to create for Singapore, sustainable econmic growth with vibrant business and good job opportunities.

EDB’s ‘Host to Home’ strategy articulates how we are positioning Singapore for the future. It is about extending Singapore’s value proposition to businesses not just to help them improve their bottom line, but also to help them grow their top line through establishing and deepening strategic activities in Singapore to drive their business, innovation and talent objectives in Asia and globally.

Singapore Business News is a publication of the Singapore Economic Development Board.

Singapore: Future Ready articulates the nation’s aspirations to be a partner for global businesses as they develop their ideas for tomorrow’s solutions. Singapore does so by recognising the value of long term partnerships, adopting a forward-looking approach, demonstrating ingenuity, and taking on challenges with a can-do spirit.

About EDB

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