Update on Plans to Develop Singapore into a Global Interactive Digital Media Hub

Mr Yee Jenn Jong asked the Minister for Communications and Information (a) whether he can provide a status report on the initiatives to develop Singapore into a global Interactive Digital Media Hub, in particular (i) the amount of funds invested since the launch of the initiative in 2006; (ii) a breakdown of the types of projects that are supported; and (b) whether the Government is on track to achieve its targets of S$10 billion in value-add and 10,000 new jobs in the industry by 2015.

In 2006, the National Research Foundation (NRF) allocated S$500 million to fund the development of a strategic Interactive Digital Media (IDM) research programme.

Page: 135

The Interactive Digital Media strategy anticipated two big technological trends. The first is the increasing digitisation of media content. The second is the emergence of new ways for media consumers to interact with content. It was recognised that the impact of IDM would ultimately be seen in the growth of the media industry. When the IDM Programme was first established, it was hoped that the media industry as a whole would reach S$10 billion value-add (VA) by 2015.

Supervening events, such as the global financial crisis of 2008 and rapid technological changes in media sub-sectors, such as printing (which would not have significantly benefited from IDM), meant that the media industry did not grow as fast as originally estimated. The media sector reached S$7.4 billion in 2011 with 14,700 new jobs created since 20061. Nevertheless, the programme has created significant new capabilities which will continue to benefit Singapore in the future.

To date, the IDM Programme has funded more than 400 R&D projects and supported more than 3,000 Researchers, Scientists and Engineers (RSEs). In addition, more than 450 products and services have been launched and more than 1,500 research papers published. In terms of investments, a total of S$241 million has been committed in Singapore. VA for the IDM sector alone grew by 23% from S$763 million in 2008 to S$1.41 billion in 20112.

IDM funding amounting to S$328 million has been committed to three funding initiatives.

The first initiative establishes partnerships between local universities and their overseas counterparts. S$171 million was committed and a total of eight International Research Centres (IRCs) have been formed. For example, the National University of Singapore and Keio University in Japan set up the Centre for Ubiquitous Technology for Embodiments (CUTE). CUTE conducts research on multi-sensory human communication, such as touch, smell and taste, through technologies embedded in everyday life.

Research undertaken at these international research centres are being commercialised. Taken together, these projects have resulted in 63 patents filed and 1,318 papers published at prestigious international scientific journals and international conferences, as well as attracting a total external funding of S$14.07 million from organisations, such as the US Air Force, Philips Electronics and Microsoft Research Asia.

Page: 136

The second initiative is to foster IDM startups. A commitment of S$34 million was set aside to support these startup projects. IDM funding provides an initial grant of S$50,000. If the startups are able to raise their own funding of up to S$100,000, the IDM Programme will match it dollar-for-dollar.

To date, more than 200 start-ups and over 700 entrepreneurs and individuals have been supported via a pool of 10 incubators from the public and private sectors. A total follow-on funding of more than S$20 million has been raised by the IDM startup companies.

The third strategic initiative establishes test-beds and innovation platforms. It also identifies businesses that can stimulate demand for IDM innovations. A total of S$123 million was committed to support companies through this effort. In turn, these companies have been successful in attracting third-party investments of more than S$100 million. Affle is a Singapore-headquartered mobile advertising company that secured over S$12.4 million in investments from D2 Communications, Japan’s largest mobile advertising company.

While many of the IDMPO projects are still in the developmental stage, a few of the projects have received international recognition. KAI Square, a company specialising in innovative technology-related surveillance services and monitoring solutions, was named in the Deloitte Technology Fast 500 Asia Pacific 2011 list. With revenue growth of 777% over a three-year period from 2009 to 2011, KAI Square was the fastest growing Singapore company, ranking 62 out of 500 in Asia Pacific. The company is now venturing into overseas markets with the set up of marketing offices in Beijing, Shanghai, Taiwan and Bangkok.

Page: 137