To give a boost to the startups’ supply chain and logistics, government agencies including SPRING Singapore and Workforce Singapore (WSG) will spend about SGD2.8 million.
Launching Supply Chain and Logistics Innovation Playground (SCLIP), Dr Koh Poh Koon, Senior Minister of State for Trade and Industry, said, “The supply chain and logistics industry has undergone major transformation over the last few years. We are seeing local and global startups disrupt traditional practices through smart warehousing, smart trading and smart transportation. This trend of disruption and constructive transformation must continue.”
He added, “For Singapore to stay relevant, we will need to build a collaborative ecosystem for large companies and startups alike, to develop and adopt innovative supply chain solutions.”
He predicted that SCLIP will help strengthen Singapore's position as the region's leading logistics hub. It will also bring various industry partners together and encourage collaboration. This is expected to generate more than SGD50 million in business ventures over the next 18 months.
About 12 startups will be working on solutions to transform the logistics and supply chain industry, as part of an incubator programme at SCLIP. The aim is to help cut down processes through automation and drive manpower-lean business models.
It is expected that the logistics industry will achieve a value-add of SGD8.3 billion and create 2,000 new jobs over the next five years.
Dr Koh noted that the industry is evolving due to the growth of e-commerce. Singapore's e-commerce market is set to grow from USD1 billion (SGD1.36 billion) in 2015 to USD5.4 billion by 2025, he added.