SPRINGnewsJULY 2016ENABLING ENTERPRISE

CAPTURING OPPORTUNITIES IN THE GROWING CLEANTECH SECTOR

SHOWCASETURNING RECYCLABLE MATERIALS INTO PROFIT: WAH & HUA

SHOWCASERIDING THE WAVES OF SUCCESS: FLAGSHIP ECOSYSTEMS

PROFILESTRATEGIC TOOLS FOR BUSINESS SUSTAINABILITY Watch SPRINGnews

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CONTENTS

4

EDITORIAL TEAM Marion ABRAHAM (marion_abraham@spring.gov.sg)Felicia LEE (felicia_lee@spring.gov.sg) Kathleen TAN (kathleen_tan@spring.gov.sg) Mark TAN (mark_tan@spring.gov.sg)Kathryn ZHANG (kathryn_zhang@spring.gov.sg)

DESIGN & LAYOUTKevin LOO (kevin_loo@spring.gov.sg)

PUBLISHING CONSULTANTEditor Group

SHOWCASERIDING THE WAVES OF SUCCESS

MAKING BREAKTHROUGHS IN ENERGY DISTRIBUTION

TURNING RECYCLABLE MATERIALS INTO PROFIT

JUMPSTART CHARTING A PATH TO SUCCESS IN CLEANTECH

CREATING WIN-WIN INNOVATION PARTNERSHIPS

PROFILE STRATEGIC TOOLS FOR BUSINESS SUSTAINABILITY

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1012WITH STRONG GOVERNMENT,

INDUSTRY AND INFRASTRUCTURE SUPPORT, SINGAPORE BUSINESSES ARE WELL PLACED FOR SUCCESS IN A GROWING CLEAN TECHNOLOGY MARKET

JULY 2016

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FEATURE STORY

CAPTURING OPPORTUNITIES IN THE GROWING CLEANTECH SECTOR

BUZZ

JULY 2016 3

New one-stop centre for CHP companies

SMEs get a financial helping handIntroduced under Singapore Budget 2016, the SME Working Capital Loan scheme – administered by SPRING Singapore – has now come into effect. Twelve participating financial institutions (PFI) have been appointed to offer loans of up to S$300,000 per SME. SPRING will co-share 50% of the default risk on such loans with the PFIs to encourage lending to SMEs. Visit www.spring.gov.sg/loan to find out more. ¢

More than 90% of Singapore businesses that supply complementary health products (CHP), such as traditional medicines and health supplements, are SMEs. On 16 June, Temasek Polytechnic announced plans to set up a new SPRING Singapore-supported Centre of Innovation for CHP to strengthen the quality, safety and efficacy of CHP and boost the global competitiveness of local CHP enterprises. The new centre will provide consultancy services, shared facilities, training opportunities, research and development expertise, and commercialisation solutions. ¢

World-first standards for Traditional Chinese Medicine

Recipe for success

The Singapore Manufacturing Federation – Standards Development Organisation and SPRING Singapore have introduced two world-first, voluntary Singapore Standards (SS) to boost the overall quality and credibility of Singapore’s Traditional Chinese Medicine (TCM) industry. The SS613:2016 aims to standardise the names and terminologies used to describe traditional Chinese medicines, and the SS614:2016 provides guidelines for prescription labelling. “These standards will help enhance patient-physician communication and improve the quality of services delivered by TCM physicians,” said Ms Choy Sauw Kook, SPRING’s Assistant Chief Executive, Quality and Excellence, at the launch of the standards on 5 June. ¢

With support from SPRING Singapore, the Restaurant Association of Singapore has published a new guidebook, Turning Passion Into Profits. Offering checklists, examples and tips that cover areas such as operational needs and potential risks, the guidebook aims to help food and beverage entrepreneurs better understand the challenges of starting and growing a food business. “For the intensely competitive food services sector, we believe that the guidebook will provide practical guidance on how to start off on the right foot and continuously improve business operations,” said Mr Ted Tan, SPRING’s Deputy Chief Executive, at the book launch event on 14 June. ¢

Senior Minister of State for Health Amy Khor launched the new SPRING-supported Centre of Innovation for CHP.

From left: Mr Michael Tan, CEO, Singapore Productivity Centre; Mr Derek Ho, Director-General Public Health (Environmental Public Health Division), National Environmental Agency; Mr Andrew Khoo, Honorary Secretary of Restaurant Association of Singapore; Mr Edward Chia, Managing Director and co-founder, Timbre Group; Mr Ali Potia, Associate Partner, McKinsey & Company; and Mrs Kee Ai Nah, Group Director (Industry & Enterprise Development), SPRING.

4 JULY 2016

With strong government, industry and infrastructure support, Singapore businesses are well placed for success in a growing clean technology market

lmost a decade ago, Singapore identified c lean techno logy (cleantech) as a strategic

growth area and has since committed more than S$700 million to the development of the industry. Fast forward to today: more businesses have embraced cleantech and are generating their own energy and water, paving the way for a more resource-efficient and sustainable Singapore.

Cleantech refers to a wide range of products, processes and services

that are energy-efficient and environmentally sustainable. Driven by successful innovations in renew-able energy and more efficient waste and water treatment, the industry is estimated to have contributed S$3.4 billion to Singapore’s Gross Domestic Product (GDP) and employed 18,000 people in Singapore in 2015.

Local cleantech businesses have played a key role in keeping the cleantech sector dynamic, profitable and competitive. With support from SPRING Singapore, many are steadily

A growing into key players in global value chains, and many others are already considered industry pioneers.

Singapore’s main challenge now is to build on this success by encouraging more cleantech innovation to stimulate smart and sustainable economic growth, and ensuring that local firms remain competitive, both locally and globally.

Seizing a wealth of opportunitiesConsumers are becoming more aware of the environmental impact

FEATURE

CAPTURING OPPORTUNITIES IN THE GROWING CLEANTECH SECTOR

of the products they purchase, a trend that is pushing companies to adopt more environmentally friendly business processes. Companies are now expected to rationalise their use of resources and minimise the waste they generate, effectively becoming part of the solution instead of perpetuating wasteful and irresponsible practices.

This new-found eco-consciousness brings challenges but also opportunities for Singapore’s SMEs and start-ups.

In 2013, solar energy company Sun Electric took advantage of the growing clean energy market. Using the JTC-SPRING Joint Grant Call for Test-bedding of Sustainable Solutions, it developed solar energy generators that connect rooftop owners with consumers looking to buy solar energy.

With the system, rooftop owners can install solar panels and generate energy while tracking their contributions to the main grid in real time. Customers who buy the energy can also monitor their energy consumption on Sun Electric’s platform.

“All the generators are connected to our server. This allows us to monitor, send commands and safely operate the system,” says Mr Matthew Peloso, the company’s founder and Managing Director. “With the system, we can also connect to the national grid and optimise energy generation.” The solution has since attracted global attention and is being used in the United States, the Philippines and Australia.

Wah & Hua Pte Ltd, a local waste management and multi-material recycling company, found success with an innovative, sustainable waste management solution. In 2011, the company developed a material recovery facility (MRF) that automatically sorts and processes recyclable materials.

Once converted into compressed bales, the recyclable materials are sold to manufacturers in Malaysia and Indonesia and then repurposed into new products.

The MRF essentially makes it easier for Wah & Hua to deal with different types of waste and generate a clean product line, an improvement that has resulted in a 20% increase in profits.

Flagship EcoSystems, meanwhile, is a pioneer in the water sector. Its

JULY 2016 5

Flagship EcoSystems’ Mobile Effluent Treatment System helps businesses discharge or reuse industrial waste water effectively and economically.

sustainable, cost-effective water treatment solutions – such as the Mobile Effluent Treatment System (METS) – help businesses discharge or reuse industrial waste water effectively and economically.

Established in 2005, the company has since expanded into Indonesia and Bangladesh and is currently in talks with a South Korean government agency looking to use METS to improve the quality of its rivers contaminated by toxic algal blooms.

CAPTURING OPPORTUNITIES IN THE GROWING CLEANTECH SECTOR Sun Electric’s innovative

business model matches the owners of rooftop solar panels with consumers who want to use solar energy but cannot afford the cost of installing the panels.

549

GDP contribution*

Co-investment fund set aside in Budget 2015 for growing start-ups in emerging sectors including cleantech

0.4%

Number of establishments*

$1.4bValue-added*

$75m

Supporting change by removing barriers Without strong institutional support and decisive policymaking, local start-ups and SMEs would risk missing out on such unique cleantech opportunities.

Like most other nascent sectors, the cleantech industry depends on companies being able to access affordable workspace, their mentorship and funding options, and the avail-ability of skilled talent. On top of these general requirements, sector-specific initiatives are needed to address the sector’s unique needs.

In May 2016, SPRING SEEDS Capital (SSC), SPRING’s investment arm, appointed seven new sector-specific accelerators – EnchantVC, GreenMeadows Accelerator (GMA), JCS Venture Lab, Jungle Ventures, TNB Ventures, TRIREC and Wavemaker – to help grow high-potential start-ups in cleantech, advanced manufacturing and engineering.

6 JULY 2016

FEATURE

SSC matches each accelerator’s investment dollar for dollar, with a maximum joint investment of up to S$4 million per start-up.

Besides offering a wealth of financial and investor knowledge, the accelerators provide start-ups with mentorship, access to a network of business contacts and targeted advice to shorten their learning curve and go-to-market time.

GMA, for instance, supports cleantech start-ups in areas such as product development and commercialisation, supply and distribution, and sales and marketing. Established in 2014, the accelerator also helps foster research and development collaboration between its investees and local polytechnics, research institutions and SPRING-supported Centres of Innovation.

“Cleantech start-ups face higher upfront capital requirements and

*Source: Department of Statistics and SPRING Singapore (2013). Note: Industry cluster as defined by SPRING.

Clean technology: key industry figures

significant cost barriers to entry,” says Ms Margaret Ong, Managing Partner at GMA. “Through our network of resources in Singapore and Asia, we help our investees find cost-effective support channels, from manufacturers to suppliers and distributors.”

In addition, the accelerator’s wide network of business contacts allows it to effectively match its investees to experts, investors and potential business partners in the advanced manufacturing and engineering, and cleantech sectors.

Venture capital firm TRIREC, another of SPRING’s newly appointed partners, focuses on early-stage equity investments in clean technology and renewable energy. It helps start-ups build business and financial capabilities in five different sectors of renewable energy – generation, eff iciency, recycl ing, energy management and storage.

Start-ups can also turn to the Sustainable Energy Association of Singapore (SEAS) for help and support. With support from SPRING’s Local Enterprise and Association Development Programme, SEAS organises training courses for its members, to enhance their technical proficiency and their innovation capabilities in clean technology.

Since 2007, SEAS has developed more than 60 training courses and trained over 7,000 professionals. It has also undertaken a series of internationalisation activities to help its cleantech member companies expand overseas. These include taking its members on overseas business trips and trade missions to generate new business leads.

Newly developed cleantech products also require substantial testing and demonstration to attract both funding and customers. But rather than creating several stand-alone programmes and services, it is much more efficient to create a single, dedicated space with multiple functions.

CleanTech Park, Singapore’s first eco-business park, offers start-ups a conducive environment for research and development, and test-bedding activities. JTC CleanTech One – the first building set up in CleanTech Park, with over 37,000 square metres of space – houses various local and international firms, creating a diverse hub for fruitful collaborative exchanges centred around clean technologies.

Tenants include the Nanyang Environment & Water Research Institute, the Solar Energy Research Institute of Singapore, Danish firm DHI Water & Environment, China’s Sinomem Technology, thermal systems firm Solid Asia and energy solutions company Diamond Energy.

Another promising initiative is Nanyang Technological University’s plan to establish Singapore’s first micro-grid facility at the offshore Semakau Landfill. Called the Renewable Energy Integration Demonstrator Singapore, the project will integrate multiple renewable energy sources and potentially connect the national grids of all 10 countries in ASEAN.

This initiative will pave the way for Singapore to leverage renewable energy sources – including solar, wind, marine and geothermal – from neighbouring countries, creating potential opportunities for local businesses to collaborate with regional

JULY 2016 7

Ms Margaret Ong Managing Partner GreenMeadows Accelerator

Through our network of

resources in Singapore and Asia, we help our investees find cost-effective support channels, from manufacturers to suppliers and distributors.

energy players and expand beyond Singapore’s shores.

Building a cleaner, more resilient futureThe estimated annual market potential of cleantech investments in Asia stands at between US$20 billion and US$50 billion from 2014 to 2020. Clearly, Singapore’s cleantech sector is a booming industry set to lead the way towards a truly innovative and resource-efficient economy.

Being smaller and nimbler than their multinational counterparts, start-ups and SMEs will play a key role in unlocking the economic potential of environmental sustainability.

If they manage to seize new growth areas and adapt quickly to market conditions, Singapore’s start-ups and SMEs will not only pioneer the regional and global cleantech markets, they will create new jobs and investment opportunities – ultimately building a cleaner, more resilient future for Singapore. ¢

JTC CleanTech One @ CleanTech Park

e may not be aware of it, but homes, businesses, farms and industrial facilities

generate enormous quantities of waste water each day. If not treated properly, waste water can pollute the environment, affect people’s health and even destroy entire ecosystems.

Flagship EcoSystems was established 11 years ago during a period of social and political interest in environmentally responsible business practices. The company provides solutions that make sustainable waste water treat-ment a cost-effective and hassle-free process for Asian businesses and industries.

“There was a strong push for greater environmental protection, sustainability due diligence and environmental compliance,” says Mr Theron Madhavan, the company’s Chief Executive Officer. “But many businesses, even today, lack the funds to invest in waste water

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SHOWCASE

8 JULY 2016

RIDING THE WAVES OF SUCCESSFlagship EcoSystems is set to yield more regional success with its new mobile water treatment system

treatment – a key component of any environmental strategy.”

The solution? Developing an afford- able water treatment system that removes water contaminants through electricity. The system – called electro-contaminant removal (ECR) – has been widely applied across various industries such as is particularly useful to businesses in the oil and gas, and textile sectors.

Road to successIn 2007, Flagship EcoSystems won its first project in Indonesia, and expanded into Bangladesh in 2009. The foray into Bangladesh – the world’s second-largest apparel manufacturer – allowed the company to secure a 30-year contract to build, own and operate the country’s largest central water treatment plant, serving some 24 textile factories.

Mr Madhavan admits that this initial success did not come easy. “We faced difficulties in convincing customers

our solution would help them solve their waste water challenges,” he says. “But we persevered, providing rounds of demonstrations, free trials and money-back guarantees, because we knew that at some point, people would see both the sustainability and the value of our solution.”

In 2010, Flagship EcoSystems innovated even further by developing a Mobile Effluent Treatment System (METS) to meet growing customer demand for mobile, flexible and ready-to-use waste water treatment solutions.

“Oil and gas drillers move between different well sites – and each site requires a waste water disposal and treatment system,” explains Mr Madhavan. “The ‘plug-and-play’ usability of the METS means it can be used as a short- or long-term solution to help customers discharge or reuse waste water effectively and economically, while reducing overall waste volume.”

JULY 2016 9

keytakeaways¢ The clean technology water sector offers a range of new business opportunities. ¢ Visit www.spring.gov.sg/CDG to find out how SPRING can help you grow your business in the clean technology industry.

There are currently nine METS units deployed at various sites across Indonesia, operating for several oil & gas companies, including Indonesia’s national oil company, Pertamina. “METS helps such companies meet their sustainability goals and regulatory standards for wastewater disposal and treatment,” adds Mr Madhavan.

Gaining recognitionIn 2015, Flagship EcoSystems decided to further enhance its METS product. Using SPRING Singapore’s Capability Development Grant (CDG), the company set about adding new capabilities to the system, in addition to making it more automated, compact and user-friendly.

The new METS is equipped with a unique super-compact clarifier, built-in water quality-testing instru-ments and a membrane system,

allowing it to serve a wider range of industries and potentially expanding the company’s customer base.

“With the clarifier and membrane system, we can help all businesses – from manufacturing and construction to pharmaceutical and food – transform their waste water into higher quality recycled water, to meet national and international waste water discharge standards and regulations,” explains Mr Madhavan.

The company’s success in the region recently sparked South Korea’s interest. “We’re in talks with a South Korean government agency looking to use the METS as a solution to its

toxic seasonal algal bloom problem,” he adds.

The algae causes odour, chokes waterways and damages the ecosystem in South Korea’s river waters, and is known to be a root cause of respiratory problems and neuron paralysis. “If successful, the deal could potentially open up a whole new revenue stream and business area for the company,” says Mr Madhavan.

Staying ahead of the gameAs for the future, Flagship EcoSystems plans to modify and further enhance the ECR process. “We’re working with Ngee Ann Polytechnic’s Environ-mental and Water Technology Centre of Innovation to study the feasibility and commercial viability of enhancing the ECR performance to be able to treat a wider spectrum of waste waters more efficiently and effectively,” says Mr Madhavan.

The company is also looking to fully automate the METS so that it can be operated and controlled remotely without any personnel present at the site. “This will reduce the number of manual tasks and staff required on site, thus boosting overall company productivity and profitability,” says Mr Madhavan. Currently, the newly developed METS unit has managed to reduce the number of operators from four to two. The aim is to further reduce the number of operators required on-site to zero.

Overall, Mr Madhavan believes the growing environmental concerns among customers and businesses open up many business opportunities.

We persevered because we

knew that at some point, people would see both the sustainability and the value of our solution.Mr Theron Madhavan Chief Executive Officer Flagship EcoSystems

He puts it this way: “It’s about filling gaps in the market with clean technology innovations and creating products that help businesses stay compliant with environmental stan-dards and regulations, while growing and improving bottom-line profits.” ¢

SHOWCASE

ntering markets dominated by big players can be challenging, but solar energy start-up Sun

Electric is powering ahead thanks to an innovative energy distribution model. Sun Electric installs solar panels on the rooftops of commercial buildings – at no cost to their owners – and matches them with small and large businesses that want to use solar energy but do not own a roof of their own.

“Solar panels are expensive and it can take up to eight years to recover all upfront costs,” says Mr Matthew Peloso, the company’s founder and Managing Director. “But our system gives more businesses an opportunity to be part of Singapore’s sustainability effort without having to shell out large investments.”

MAKING BREAKTHROUGHS IN ENERGY DISTRIBUTIONSun Electric is disrupting conventional business models with its innovative solar operating platform

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10 JULY 2016

In January 2015, using the JTC-SPRING Joint Grant Call for Test-bedding of Sustainable Solutions, Sun Electric developed a solar power operation system backed by generators and connected to a server, which allows the company to allocate, measure and audit the energy generation and usage of its clients – both building owners and their customers – in real time through its online platform. “The system also allows our off-site energy consumers to verify their total solar energy usage, ensuring transparency,” says Mr Peloso.

Some of the local businesses using clean electricity from the company’s first batch of generators – installed on the rooftop of a JTC facility in Tuas – include Tiger Sky Tower, the highest observation tower in Singapore;

fitness studio UFIT Singapore; Lotto Carpets Gallery; and online restaurant service Chope.

The installation on JTC’s rooftop is part of Sun Electric’s test-bedding programme with JTC Corporation and SPRING Singapore.

A new energy modelPreviously, businesses that could not afford to pay the upfront costs of solar panels entered into 20-year power purchase agreements (PPAs) with solar companies, which offered free installation and maintenance. In return, they paid these solar companies for the energy produced by the panels, usually at rates as much as 25% lower than conventional utility rates.

“That commitment means that if an SME owner sells his office space,

MAKING BREAKTHROUGHS IN ENERGY DISTRIBUTION

he must buy out the remaining years or transfer the contract to a new owner,” says Mr Peloso. “Buying out the last 10 years could cost thousands – something that most small businesses cannot afford to pay.”

Now, Sun Electric sells solar energy to small businesses – through rooftop owners – at up to 25% less than the cost of conventional electricity. The company does this through blending solar energy with other types of cheap energy, such as natural gas. “Our central solar power system is also developed in such a way that customers can choose their energy blends and pay only for their usage,” says Mr Peloso.

“We can forecast a customer’s solar energy requirements and bill each month and use this data to recommend specific solar products for each business. This is how we bring customer-centricity to energy,” he adds.

For more budget-minded consumers, Sun Electric has developed a flexible, cost-effective product, SolarFlex, which comes with no minimum level of solar energy guaranteed. It has two other products with a certain amount of solar energy guaranteed each month, depending on each customer’s energy needs.

Rooftop owners benefit from the sale of solar energy generated on their roofs. “Often, solar power is not suitable for a building’s use, which may result in waste,” Mr Peloso says. “But with our system, rooftop owners can sell solar energy generated on their roofs to other businesses, with profit returns of up to 15%.

The remaining amount earned from each solar rooftop – up to 85% – is retained by Sun Electric and financers of its generating systems.

Gaining a financial advantageAdditionally, Sun Electric has developed a supplementary solar

keytakeaways¢ The conventional and renewable energy industries offer new growth opportunities for start-ups.¢ Visit www.spring.gov.sg to find out how SPRING can help you grow your business in the cleantech industry.

JULY 2016 11

product, called SolarPEAK, that helps both building owners and their energy customers hedge their exposure to the fluctuations in oil prices and save on energy costs.

Conventional power plants and generators use fuel to generate electricity. During the course of a day, the wholesale price of electricity on the power grid reflects the real-time fuel costs for supplying electricity.

“When a customer’s electricity demand is at its highest, usually in the afternoon and early evening, SolarPEAK locks in a minimum penetration, or peak usage, amount, and protecting the customer from fluctuations in oil prices each time their energy usage hits that particular amount,” Mr Peloso explains.

SolarPEAK works as a financial hedge to protect customers from fuel price jumps for between three and four years. “SolarPEAK uses a

special blend of solar, gas and grid energy – but consumers are protected from jumps in fuel prices for several years, resulting in lower energy costs overall,” he says. More than 25% of Sun Electric’s consumers now use SolarPEAK.

Delivering value andefficiencyToday, Sun Electric has a range of local commercial rooftop owners supplying solar energy to both large and small Singapore businesses. The company whuch has expanded to the United States, Japan, Australia and the Philippines, generated millions of dollars in revenue in Singapore alone in 2015.

Mr Peloso aims to grow the company’s solar-power generation capacity in Singapore to 20 MW by year-end. “This is equivalent to 25 gigawatt-hours of electricity, which means up to hundreds of thousands of dollars in additional monthly income for our rooftop owner clients,” he says.

He believes there are plenty of innovative ways to disrupt the energy market. “Think about giving consumers more choices in terms of how and where they obtain energy,” he says. “Essentially, it’s about creating and capturing opportunities in the energy industry to provide operational excellence to communities and businesses.” ¢

Our system gives large and small

businesses an opportunity to be part of Singapore’s sustainability effort without having to shell out large investments.Mr Matthew Peloso Founder and Managing DirectorSun Electric

Mr Matthew Peloso (in blue) and his team.

12 JULY 2016

TURNING RECYCLABLE MATERIALS INTO PROFITAn innovative waste management and recycling strategy has helped Wah & Hua Pte Ltd secure customer confidence and sustain business growth

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SHOWCASE

aste management has become a p r e o c c u p a t i o n f o r bus inesses

of all sectors. Responsible waste management and disposal can not only help a company reduce waste management costs, it can also make it more competitive and demonstrate its commitment to environmental sustainability.

“Pollution from irresponsible dumping of waste poses a major environmental challenge – and a legal risk to businesses as well. In fact, illegal dumping of waste is a serious offence in Singapore and companies guilty of such an act should be taken to task by Singapore’s National Environment Agency,” says Ms Melissa Tan (above), General Manager, Wah & Hua Pte Ltd.

Set up in the 1970s, the local waste management and multi-material

recycling company helps businesses turn waste into a resource that benefits the environment. “It is much more than just trash collection,” says Ms Tan. “Wah & Hua is essentially a one-stop shop, providing all-inclusive, sustainable disposal solutions to local businesses and industries.”

In 2011, faced with competition from local waste management firms, Wah & Hua used SPRING Singapore’s Capability Development Grant to design and build a high-tech Material Recovery Facility (MRF) that sorts and processes recyclable materials. “These are then sold to recycling brokers or manufacturers who would remanufacture them into new products,” says Ms Tan.

The MRF makes it easier for the company to deal with many types of waste and gives clients confidence that their recyclable materials are

handled and processed in optimal conditions.

A highly efficient processThe MRF is a sorting system fitted with conveyor belts that efficiently sorts and processes multiple waste streams over a single processing line.

With the MRF, trash becomes a commodity, just like oil or wheat. “Once the MRF processes and sorts the items that get thrown into our bins, they are converted into bales – or tightly compressed blocks of recyclable materials – and sold to manufacturers in Malaysia and Indonesia,” explains Ms Tan.

Before introducing the MRF, the company had to manually screen and remove foreign objects such as broken glass, bricks and asphalt, making the recycling process long and arduous. “Recyclable materials, such as paper,

JULY 2016 13

keytakeaways¢ New opportunities for clean technology ventures can be found even in traditional industries such as waste management.¢ Visit www.spring.gov.sg/CDG to find out how SPRING can help you build business capabilties in the clean technology industry.

can be ruined in the process and become useless residuals if contaminated by, for instance, broken glass,” says Ms Tan.

Now, the MRF automates the process of sorting and separating commingled recyclables, allowing quicker sorting, reducing contamination and yielding commodities that generate premium prices from recycling brokers and manufacturers.

“Product and service quality is important in a competitive market,” adds Ms Tan. “With the MRF, we have a guaranteed clean product line, which has resulted in higher confidence from recycling brokers and manufacturers and a 20% increase in profits.”

Efficient manpower managementIn the past, Wah & Hua needed 10 people to manually pick and sort up to a tonne of waste and recyclable materials per day. Now, it only needs six people to run the MRF.

“We have been able to reduce our manpower needs by 40%,” says Ms Tan. “Essentially, it allows us to do more recycling at a higher profitability.”

In addition, the MRF’s automation technologies have fostered a new way of working with and handling waste, helping the company create a tech-

savvy, highly skilled and efficient workforce that performs faster and better.

This has resulted in a 40% increase in productivity and the company winning the SME Quality Initiatives to Assist, Nurture and Grow (QIANG) Gold Award at the 2014 Singapore Workforce Development Agency–Singapore Manufacturing Federation Productivity & Innovation Awards.

Ms Tan adds, “While other businesses face manpower challenges, we have

been able to attract and retain highly skilled professionals. With the MRF, we have been able to include quality job creation and long-term business sustainability in our profit and growth strategy.”

Strategy for the futureToday, Wah & Hua is a frontrunner in Singapore’s environmental sustainability movement. Its practices demonstrate the many benefits of applying new processes to remain profitable while being kinder to the environment.

The company recently implemented an enterprise resource planning system to further streamline its waste collection and recycling processes – from the moment waste is picked up through to its storage, transportation, sorting, treatment and dispatch.

“In the future, we plan to add robotics to the MRF system to accurately identify and eliminate any form of contamination, and further improve the quality of our products,” says Ms Tan.

Overall, Ms Tan believes that waste and recycling should be seen as a chance to innovate, streamline business operations and create cost savings for all businesses engaged in Singapore’s sustainability agenda.

“For entrepreneurs, sustainability can become the foundation on which to build a business,” she says. “Just look at how far we have come since we established the business in the 1970s!” ¢

Wah & Hua's Material Recovery Facility makes it easier for the company to deal with many types of waste and gives clients confidence that their recyclable materials are handled and processed in optimal conditions.

While other businesses face

Ms Melissa Tan General Manager Wah & Hua Pte Ltd

manpower challenges, we have been able to attract and retain highly skilled professionals. With the MRF, we have been able to include quality job creation and long-term business sustainability in our profit and growth strategy.

FUELLING SUCCESS: SpectronikSet up in 2011, Singapore company Spectronik develops fuel-cell portable power products that convert hydrogen gas into electricity for industrial and critical military applications in remote, off-grid areas with no access to electricity.

The company started off providing fuel-cell products for use in local research institutions and universities. In 2015, using the SPRING Singapore Technology Enterprise Commercialisation Scheme’s Proof-of-Value grant, the company developed Spectronik Water-Assisted Power (SWAP) Platoon. The portable power device uses Spectronik’s patented solid fuel technology to react with water and produce hydrogen gas on demand. This gas is then converted into electricity using fuel cells. Converting hydrogen gas into electricity produces only water and heat as a by-product, which means SWAP Platoon does not generate any pollution.

The SWAP Platoon’s superior energy density and lack of charging downtime make it suitable as a field

battery charger for off-grid military applications, where supplying electricity is logistically challenging. In fact, it can even be used to power military and surveillance unmanned aerial vehicles – most commonly known as drones – which typically use gasoline fuel, thus helping reduce greenhouse gas emissions. ¢

POWERING SAVINGS: EverComm SingaporeIn 2013, Nanyang Technological University (NTU) graduates Mr Ted Chen (right) and Mr Phyo Ko Ko found a way to reduce energy usage and costs by combining sensor networks with big data analytics. This led them to set up EverComm Singapore. Using sensors installed on equipment such as computers and air conditioners, the energy management solutions provider aims to help enterprises quickly pinpoint the most cost-effective way to manage and improve their energy efficiency. The company also uses energy modelling algorithms, co-developed with NTU, to help identify anomalous consumption patterns and cost-saving opportunities. Since its launch, EverComm has helped its Singapore, Thailand and Taiwan clients collectively achieve more than US$3.4 million in energy savings. With support from SPRING Singapore’s Capability Development Grant, the company is developing a cost-effective, scalable, wireless per-second energy data collection solution to boost its analytics capabilities, with partners such as NXP, a global semiconductor leading manufacturer. ¢

JUMPSTART

14 JULY 2016

SWAP Platoon

This new section of SPRINGnews launches with a series of snippets on some of Singapore’s high-potential, fast-growing start-ups.

CHARTING A PATH TO SUCCESS IN CLEANTECH

JULY 2016 15

MAKING WAVES: WateROAMSingapore start-up, WateROAM, designs portable water filtration systems for use in disaster relief operations and rural communities without access to clean drinking water. Established in 2014, the ACE Startups Grant recipient has designed and developed a portable water filter bag, called ROAMfilter Lite, that filters dirty water, such as river water, through a membrane turning it into drinkable water. Each bag, which weighs under 300 grams, is made of medical-grade plastic and fitted with a tube that dispenses filtered water. It takes only an hour to filter a bag of six litres of water, which can serve a household of up to seven people. In 2015, the company developed a larger version of the same device, called ROAMfilter Plus, that weighs four kilograms and can produce up to 250 litres of clean drinking water per hour. Since 2014, WateROAM has provided clean water to more than 15,000 people in Cambodia, Myanmar, Nepal, Indonesia, and Malaysia. Recently, the company partnered with World Vision Malaysia – a child-focused humanitarian organisation – to conduct product trials in selected Malaysian villages with poor access to clean water. ¢

Set up in 2013, Zerowaste Asia (ZA) has developed a range of specialty chemicals, ZA-TECH, to immobilise or remove heavy metals from different kinds of waste and waste water in an efficient, simple, and cost-effective way. ZA also transforms the detoxified waste into materials suitable for land reclamation and construction. Of the 2,400 tonnes of non-incinerable waste, and ash from incinerated waste sent to Singapore’s active landfill at Pulau Semakau every day, ZA proposes to treat and divert more than 1,500 tonnes to be repurposed into new products.

The start-up has since expanded into China, and its technology is helping more and more waste generators to resolve their problems. This success has given ZA the confidence to tender for a National Environment Agency contract to treat hazardous incineration fly ash from Singapore’s four incineration plants.

Using the SPRING Singapore Technology Enterprise Commercialisation Scheme’s Proof-of-Concept grant, the company is also developing a revolutionary technological solution to not only treat the heavy metals in hazardous waste for safe disposal, but also convert non-hazardous waste into superior construction materials. The solution will also potentially further reduce the volume of waste deposited in landfills and improve the long-term environmental safety of the waste. ¢

FINDING OPPORTUNITIES IN WASTE: Zerowaste Asia

Treated incineration fly ash

Waste-derived construction material

CHARTING A PATH TO SUCCESS IN CLEANTECH

JUMPSTART

CREATING WIN-WIN INNOVATION PARTNERSHIPS

JULY 2016 17

Why is Veolia keen to form partnerships with innovative players and start-ups in the cleantech industry?Today’s competitive business landscape demands constant innovation. We realised that we could no longer afford to work in a vacuum if we were to effectively meet the ever-changing environmental needs of various industries. So, we developed a plan to foster strategic partnerships with external innovators. In 2010, we launched the global Veolia Innovation Accelerator (VIA) programme to identify, develop and collaborate with innovative cleantech start-ups, entrepreneurs and SMEs from all over the world who we feel would add value to our business and help us remain competitive.

How does the VIA work? First, start-ups, entrepreneurs and SMEs interested to work with us send us their proposals through our online platform. Then, we assess the potential, value and viability of these proposals. Finally, we match selected start-ups, entrepreneurs and SMEs with relevant Veolia business unit managers, experts and researchers.

In this issue, we caught up with Ms Emmi Kaipio, Open Innovation Officer, Veolia City Modelling Center Singapore, to find out why forming partnerships with local start-ups is an important part of the global waste, water and energy solutions provider’s global innovation strategy.

How has the VIA helped Veolia and its partner companies remain competitive?Since 2010, the VIA has reviewed more than 2,000 proposals from innovative cleantech start-ups globally. Some of these businesses have played a key part in helping us design, develop and deploy innovative cleantech and environmental solutions in different markets.

For innovators, the VIA is a great way to build business networks and access new markets with support from global industry leaders. In a way, the programme helps us and our partners stay on top of both the local and global cleantech industry.

How is Open Inovasi different from Veolia’s Open Inovasi initiative? What does this initiative aim to achieve?Launched in January this year, Open Inovasi is a regional open innovation platform for reaching Singapore innovators across different industries. With support from SPRING Singapore and in colla-

boration with French multinationals – including Bouygues Construction, automotive company PSA Group, and Thales Group – a global technology leader in the defence, security, aerospace and transportation markets – the initiative aims to find new solutions for future cities.

It enables us to bring together large industrial groups from different sectors to increase the potential for discovering more disruptive innova-tions in Singapore. The consortium also aims to build a supportive environment for Singapore start-ups and SMEs to test and pilot their sustainable solutions in real-life local environments.

In the future, we see this initiative further boosting our innovation capacity by adding value and differentiation to our existing range of products and services, and allowing us to create solutions that effectively meet the future environmental challenges of Singapore and its businesses. ¢

Whichever stage of growth your business is at, having the right set of business capabilities will make you more competitive. SPRING Singapore’s Capability Development Grant (CDG) helps defray up to 70% of qualifying project costs when you enhance your capabilities to grow your business.

For more information, visit www.spring.gov.sg/CDG today!

TECHNOLOGY INNOVATION

FINANCIAL MANAGEMENT

HUMAN CAPITAL

DEVELOPMENT

BRAND & MARKETINGSTRATEGY

DEVELOPMENT

BUSINESS EXCELLENCE

SERVICE EXCELLENCE

PRODUCTIVITY IMPROVEMENT

INTELLECTUAL PROPERTY & FRANCHISING

ENHANCING QUALITY &

STANDARDS

BUSINESS STRATEGY

INNOVATION

Build Up Your Businesswith the

Capability Development Grant

Whichever stage of growth your business is at, having the right set of business capabilities will make you more competitive. SPRING Singapore’s Capability Development Grant (CDG) helps defray up to 70% of qualifying project costs when you enhance your capabilities to grow your business.

For more information, visit www.spring.gov.sg/CDG today!

TECHNOLOGY INNOVATION

FINANCIAL MANAGEMENT

HUMAN CAPITAL

DEVELOPMENT

BRAND & MARKETINGSTRATEGY

DEVELOPMENT

BUSINESS EXCELLENCE

SERVICE EXCELLENCE

PRODUCTIVITY IMPROVEMENT

INTELLECTUAL PROPERTY & FRANCHISING

ENHANCING QUALITY &

STANDARDS

BUSINESS STRATEGY

INNOVATION

Build Up Your Businesswith the

Capability Development Grant

JULY 2016 19

What are some of the sustainability challenges Singapore and its businesses are facing? Unlike many other industrialised nations, we lack the space and natural resources that allow businesses and industries to radically change the way we consume water and energy, and the way we manage waste. Finding solutions to these challenges is also much more urgent for us than for others. We are particularly vulnerable to climate change; higher temperatures,

SPRINGnews spoke to Reginald Tan, Professor at the Department of Chemical and Biomolecular Engineering, National University of Singapore, and Chairman of SPRING Singapore’s Environmental Standards Committee, to find out how adopting environmental standards can help companies in Singapore meet their sustainability goals and gain a competitive edge.

rising sea levels and intense rainfall can have disastrous long-term effects on our ability to grow the economy.

Despite its limited access to alternative energy resources, Singapore joined many other countries in making a number of environment-related pledges at the 2015 United Nations Climate Change Conference (COP 21) in Paris. We pledged to reduce our greenhouse gas emissions intensity by 36%, and to stabilise emissions with the goal of peaking by 2030.

Earlier this month, Singapore’s President, Dr Tony Tan Keng Yam, demonstrated his commitment to fulfilling these ambitious targets by launching a Climate Action Plan. The plan outlines several measures to cut carbon emissions across all sectors, and to help Singapore achieve its 2030 targets. This will require the collaborative effort of all stakeholders, from start-ups to multinational corporations.

STRATEGIC TOOLS FOR BUSINESS SUSTAINABILITY

PROFILE

20 JULY 2016

PROFILE

Why are environmental standards important in this regard? Environmental standards are key to achieving sustainable business development. They lead to the development and implementation of quality management systems and tools to improve strategic planning and thinking, leadership commitment and communication, making it easier to shape a company’s approach and response to environmental concerns.

What role does the Environmental Standards Committee (EVSC) play in promoting and driving the adoption of environmental standards among Singapore businesses? The EVSC – one of the 12 standards committees under the Singapore Standards Council managed by SPRING Singapore – actively monitors international environmental standards and tools to ensure they are relevant to Singapore businesses, products and services. It is actively engaged in the processes that lead Singapore to adopt and convert key international standards into Singapore Standards. The EVSC also holds regular standards awareness and adoption seminars to promote the implementation of key standards among companies in Singapore.

In October 2015, SPRING launched the Singapore Standard (SS) ISO 9001:2015 Quality Management Systems and SS ISO 14001:2015 Environment Management Systems at a seminar which drew more than 600 participants, from small businesses to large enterprises. It featured industry experts – such as Dr Nigel Croft, Chairman of the International Organization for Standardization’s Technical Committee responsible for the development of the ISO 9001 Quality Management Systems, and Mr Praveen Tekchandani, Member of the EVSC Working Group on Greenhouse Gas and Product Lifecycle Assessment – sharing high-level insights on how to build sustainable businesses.

In your opinion, which standards are particularly useful for Singapore SMEs that want to put in place an environmentally responsible business strategy? There are a few. ISO 14001:2015, for instance, specifies the requirements for an environmental management system, so it is a key component of any environmentally responsible business strategy. Adopting this international standard helps companies improve their environmental performance and gain the trust of stakeholders and markets.

Other useful standards include ISO 14031:2013, which provides guidelines on implementing an environmental performance evaluation system; ISO 14040:2006, which describes the principles, techniques and frameworks for assessing the environmental aspects and potential impacts associated with a product; and ISO 14063:2006, which gives guidance on principles, policies, strategies and activities for effectively engaging internal and external stakeholders on environmental topics.

How exactly do these standards help promote effective resource use – especially in manufacturing processes – and boost business profitability?Taking a closer look at their environmental performance and working to enhance it allows companies to improve efficiencies and reduce costs. It’s a process that gives them a competitive and financial advantage over those that do not.

For a manufacturing company, implement ing env i ronmenta l management system standards means that it has to identify, manage and monitor its supply chain processes and activities, and environmental performance in a holistic manner. This includes putting in place environmental management systems to control its energy, water and material consumption across its supply chain. In turn, this will help the company reduce its operational costs and boost bottom-line profits.

Whether it is air, water and sewage pollution; waste management; soil contamination; climate change mitigation and adaptation; or resource use and efficiency, there is always room for improvement.

JULY 2016 21

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Does adopting environmental standards also help improve product and service quality? If so, how?Yes, it does. ISO 14001, for example, pushes businesses to improve their processes, products and services by having them comply with current statutory and regulatory environmental requirements. In addition, it increases leadership involvement in and staff engagement with enhancing the environmental performance of products and services.

In fact, companies that have adopted ISO 14001 have reaped a range of business benefits, including improved company reputation and global customer confidence.

How can businesses use environmental standards as a tool to calculate the carbon footprint of their products, services and supply chain?Besides ISO 14031:2013, companies can use the ISO/TS 14067:2013,

which specifies principles, require-ments and guidelines for quantifying and communicating the carbon footprint of a product. Businesses can also go a step further by adopting ISO 14064-1:2006, which provides guidance in quantifying and reporting greenhouse gas emissions and removals.

How do environmental standards help remove some of the barriers to trade? ISO standards represent a high level of consensus and harmonisation regarding international best practices. So adopting and implementing international standards such as ISO 14001 gives suppliers and customers the confidence they need to do business with a local or global company.

In addition, they help demonstrate compliance with national and international regulations and trade requirements, thus enabling companies to take advantage of opportunities in a wider range of markets beyond Singapore’s shores.

How would you advise local SMEs looking to adopt environmental standards? What are some of the first steps?The global marketplace has fundamentally changed in its awareness of and response to environmental issues and climate change. These days, environmentally responsible companies tend to have the competitive edge, which means Singapore SMEs from all industries cannot afford to be left behind.

At the same time, environmental engagement has become a trendy topic in the corporate sphere, so I would advise companies to work towards being truly responsible and proactive rather than responding to short-term incentives.

In that sense, a good starting point would be to adopt the ISO 14001 standard as an environmental performance booster but also a strategic business tool. ¢

SMF

At the SME Centre, our Business Advisors partner you on your growth journey, guiding you to the next level in your business. Leverage their insights on the SME community, and tap on readily available business resources, to start growing your business today!

Supported by

Find out more at www.smecentres.sg

More than Business Advisors, they are my partners in business

Ms Shermaine TayBusiness Advisor

SME Centre@SMF

Join these SMEs that have taken their businesses to the next level

Mr Sia Chye WhattDirector

Darwin Design & Development Pte Ltd

Ms Angel Tnee Ching MeiFounder

Allure Beauty Salon Pte Ltd

Mr Ng Cheng KaiBusiness Advisor

SME Centre@SMF

Ms Ashura D/O Isaahak PiperdyBusiness Advisor

SME Centre@SMCCI

Mdm Supiah AbdullahDirector

Foodcrumz Pte Ltd

Ms Ho Qian Yi Fermelle Director

iConz Pte ltd

Mr Andrew GamBusiness Advisor

SME Centre@ASME

Mr. Ishvinder SinghBusiness Advisor

SME Centre@SICCI

Mr P. GunasegeranCEO

Just R Enterprise Pte Ltd

Ms Stella Aw Yong Business Advisor

SME Centre@ASME

Mr Kentigern TanDirector

Suniwell Trading Pte Ltd

Ms Ong Poh Geok Founder

Shing Mei Confectionery

Mr Alan Wong Peng HowBusiness Advisor

SME Centre@SCCCI

Ms Viswanatham SangariBusiness Advisor

SME Centre@SICCI

Mr Mahendran S/O Navaratna RajahRegional Director

Omni-Health Pte Ltd

Mr Tan Guang LinBusiness Advisor

SME Centre@SMF

Ms Ann YeoGeneral Manager

Five Star Hainanese Kampong Chicken Rice

Sales of StandardsToppan Leefung Pte LtdGreat World City East Tower 1 Kim Seng Promenade, #18-01Singapore 237994Tel: (65) 6826 9691Fax: (65) 6820 3341Email: singaporestandardseshop@toppanleefung.comWebsite: www.singaporestandardseshop.sg

Standards CollectionNational Library BoardLee Kong Chian Reference Library 100 Victoria StreetLevel 7Singapore 188064Tel: (65) 6332 3255Email: ref@library.nlb.gov.sgWebsite: eresources.nlb.gov.sg/standards

SME InfolineTel: (65) 6898 1800Email: smeinfoline@spring.gov.sgWebsite: www.smeportal.sg

SME CentresSME Centre@ASME Association of Small and Medium Enterprises (ASME) 167 Jalan Bukit MerahTower 4, #03-13Singapore 150167Tel: (65) 6513 0388Email: enquiries@smecentre-asme.sgWebsite: www.smecentre-asme.sg

SME Centre@SCCCISingapore Chinese Chamber of Commerce and Industry (SCCCI) 47 Hill Street, #09-00Singapore 179365Tel: (65) 6337 8381Fax: (65) 6339 0605Email: enquiry@smecentre-sccci.sgWebsite: www.smecentre-sccci.sg

SME Centre@SICCISingapore Indian Chamber of Commerce and Industry (SICCI) SICCI Building31 Stanley StreetSingapore 068740Tel: (65) 6508 0147Email: sme@smecentre-sicci.sgWebsite: www.smecentre-sicci.sg

Satellite SME Centres are also located at the Community Development Councils (CDCs).

CONTACTSSME Centre@SMCCI Singapore Malay Chamber of Commerce and Industry (SMCCI) 15 Jalan PinangSingapore 199147Tel: (65) 6293 3822Fax: (65) 6293 3905Email: gadvisory@smecentre-smcci.sgWebsite: www.smecentre-smcci.sg

SME Centre@SMF Singapore Manufacturing Federation (SMF) 2985 Jalan Bukit Merah Singapore 159457Tel: (65) 6826 3020Fax: (65) 6826 3021Email: query@smecentre-smf.sgWebsite: www.smecentre-smf.sg

For assistance, you can visit satellite SME Centres located at the Community Development Councils (CDCs), Changi Simei Community Club and Ang Mo Kio Community Centre.

SPRING Singapore is an agency under the Ministry of Trade and Industry, responsible for helping Singapore enterprises grow and building trust in Singapore products and services. As the enterprise development agency, SPRING works with partners to help enterprises with financing, capability and management development, technology and innovation, and access to markets. As the national standards and accreditation body, SPRING develops and promotes an internationally recognised standards and quality assurance infrastructure. SPRING also oversees the safety of general consumer goods in Singapore.

SMF

At the SME Centre, our Business Advisors partner you on your growth journey, guiding you to the next level in your business. Leverage their insights on the SME community, and tap on readily available business resources, to start growing your business today!

Supported by

Find out more at www.smecentres.sg

More than Business Advisors, they are my partners in business

Ms Shermaine TayBusiness Advisor

SME Centre@SMF

Join these SMEs that have taken their businesses to the next level

Mr Sia Chye WhattDirector

Darwin Design & Development Pte Ltd

Ms Angel Tnee Ching MeiFounder

Allure Beauty Salon Pte Ltd

Mr Ng Cheng KaiBusiness Advisor

SME Centre@SMF

Ms Ashura D/O Isaahak PiperdyBusiness Advisor

SME Centre@SMCCI

Mdm Supiah AbdullahDirector

Foodcrumz Pte Ltd

Ms Ho Qian Yi Fermelle Director

iConz Pte ltd

Mr Andrew GamBusiness Advisor

SME Centre@ASME

Mr. Ishvinder SinghBusiness Advisor

SME Centre@SICCI

Mr P. GunasegeranCEO

Just R Enterprise Pte Ltd

Ms Stella Aw Yong Business Advisor

SME Centre@ASME

Mr Kentigern TanDirector

Suniwell Trading Pte Ltd

Ms Ong Poh Geok Founder

Shing Mei Confectionery

Mr Alan Wong Peng HowBusiness Advisor

SME Centre@SCCCI

Ms Viswanatham SangariBusiness Advisor

SME Centre@SICCI

Mr Mahendran S/O Navaratna RajahRegional Director

Omni-Health Pte Ltd

Mr Tan Guang LinBusiness Advisor

SME Centre@SMF

Ms Ann YeoGeneral Manager

Five Star Hainanese Kampong Chicken Rice

SPRING Singapore1 Fusionopolis Walk, #01-02 South Tower, Solaris, Singapore 138628

Tel: +65 6278 6666, Fax: +65 6278 6667www.spring.gov.sg