GLCs' R&D Contributions and Activities under RIE2025/RIE2030 and Assessment of Singapore's National Innovation Performance
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the proportion of Business Expenditure on R&D (BERD) from Government-linked companies (GLCs), their alignment with strategic RIE domains, and the impact of domestic enterprises’ R&D share on national innovation. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong reported that local enterprises, including GLCs, contributed $1.7 billion to the $9 billion total BERD in 2023. He noted that GLCs like ST Engineering are intensifying R&D in artificial intelligence and advanced manufacturing to scale solutions and grow the local talent pool. The Minister highlighted that private sector R&D jobs grew by 36% to over 30,000, with locals filling 70% of these roles, supporting Singapore's position as a leading high-tech exporter. He affirmed that the Government will continue supporting the innovation journey of local enterprises to strengthen Singapore's competitiveness in technologically intensive sectors.
Transcript
75 Mr Kenneth Tiong Boon Kiat asked the Deputy Prime Minister and Minister for Trade and Industry (a) what proportion of Business Expenditure on R&D (BERD) is attributable to Government-linked companies (GLCs); (b) whether any GLCs currently undertake significant R&D activities aligned with strategic domains identified under RIE2025 or RIE2030; (c) what is the Government's assessment of the implications for Singapore's innovation output when large domestic enterprises account for a relatively small share of national R&D activity.
Mr Gan Kim Yong: The research and development (R&D) capacity of our firms has increased significantly over the years, with Business Expenditure on R&D (BERD) growing by a compound annual growth rate of 7.8% from 2016 to 2023, reaching $9 billion. Within the same period, the BERD from local enterprises, including Government-linked Companies (GLCs), grew to $1.7 billion, contributing to about 20% of total BERD.
GLCs have undertaken R&D investments and innovation activities that are aligned with the Research, Innovation and Enterprise (RIE) Domains. They are in line with Singapore's decarbonisation goals, artificial intelligence (AI) push and advanced manufacturing priorities. For example, ST Engineering will intensify its AI R&D efforts through its Artificial Intelligence Centre of Excellence (AI CoE) to scale up its core of AI-ready modules and solutions. With the AI CoE in Singapore, ST Engineering aims to grow its existing AI talent pool from 2,000 to 5,000 over the next five years, creating new high-value jobs for Singaporeans. Industry R&D collaborations in strategic areas, such as healthcare and semiconductors are also fostered by our Research Institutes and National Platforms like the Diagnostics Development Hub and the National Semiconductor Translation and Innovation Centre.
We welcome innovation activities from both local and foreign enterprises as they lead to the creation of good jobs and strengthen Singapore's competitiveness in technologically intensive sectors. Between 2016 and 2023, R&D jobs in the private sector grew by 36%, reaching more than 30,000, with locals filling more than 70% of these roles. Today, Singapore is the sixth largest exporter of high-tech goods globally, according to the World Bank Group. We will continue supporting the innovation journey of local enterprises, including GLCs.