Singapore maritime is the globally renowned maritime hub having more than 5,000 maritime companies and over 130 international shipping groups. Being one of the oldest flagship industries in Singapore, the maritime industry offers an excellent opportunity for startups to create innovation-driven growth.
This industry has a lot of scope in various areas. These areas of marine and offshore engineering, marine insurance, ship management, shipbroking, ship financing, and maritime services.
Technology advancements such as modeling, simulation, automation, and robotics have helped maritime industries in optimizing decision-making and automating their processes. This has helped in improving productivity.
This industry offers immense opportunities for startups. However, simultaneously, startups may encounter particular challenges while carrying out their operations in this field.
Challenges for Startups in the Maritime Industry in Singapore
Despite the rapid technological advancements, the maritime industry has not yet leveraged the technology to the fullest. Though the maritime companies have started including new technology trends in their strategy to improve efficiency, the pace of adoption is very moderate.
Industry players need to take proactive actions to propel the industry further. There are so many things that are done in the sector traditionally that affect in some ways.
If the maritime industry in Singapore could make use of technology, then the progress could have been better than this.
One example where the technique has worked is in the aviation industry. If the Maritime industry can adopt the same, then the sector could move at the required pace.
People who are thinking of joining this industry in Singapore should try to make good use of technology in the sector. Technology will not only speed up the working process but will also ensure the easy serving of clients in the same industry.
Growing Regulatory Burden:
One of the major concerns for the maritime industry is – changing regulatory compliance and environmental issues. It requires companies to invest in stronger and stringent risk management programs.
It also requires them to set up the right technological structures, protocols, and procedures, and stay at the forefront of change.
Given that these regulations keep changing with time. It is tough to make long term plans based on the same.
If governments could come up with proper and lengthy rules, then it could be better. Investors are always worried because they do not know what rules will come in next
Some regulations are so stringent they make it hard to do business in this sector. If this industry is to record any notable change, then the government has to come up with fair regulations. They should also come up with these regulations in consultation with people from this sector.
Most people fear these regulations hence avoid investing in this industry. This way, the industry loses an excellent opportunity for growth.
Lack of Skilled Workforce:
The maritime industry lacks a skilled workforce to keep pace with fast technological changes. A future-ready workforce is a critical requirement for maritime companies in Singapore, for sustaining competitiveness.
Organizations need to equip and empower their workforce with data analytics, IT literacy and other cross-disciplinary skills. They should also groom them with a global perspective.
Without this workforce, it will be hard for the maritime industry in Singapore to compete with other sectors from the globe. The government should also come in. They have to set up institutions that will equip people with the necessary skills in this sector.
The Maritime sector is fast-moving. Without proper skills, the industry in Singapore will soon become obsolete.
This is, therefore, a challenge to the government and other players in the industry to make sure that the workers in this sector have the right skills.
The government or the sector can choose to take the existing workers through some training which will update them on the existing skills. For this industry to grow in Singapore, then there has to be a skilled workforce.
Without proper skills in the workers of this sector, it will be tough for the maritime industry in Singapore to compete with other giants. The industry is fast-moving, and this means the skill is changing daily.
Singapore Maritime Services for Startups in the Maritime Industry
Digitization Will Be the Next Big Wave for Maritime Companies:
Internet of Things (IoT). Machine learning, the blockchain, data analytics, and other advanced digital transformation technologies have streamlined the operations of maritime companies. This has saved the industry up to billions of dollars.
Digitization has enabled organizations to engage with their customers and efficiently address their needs.
It is effortless to track events and even monitor things with technology. With these conditions, it is straightforward to make a profit and make the industry to grow. People no longer have to do things manually, which takes time, causing inconveniences in the process.
If the maritime industry in Singapore is to make the desired progress, then digitization has to be at the center of it. Without scanning, Maritime industries in Singapore will not be able to move.
Support from Government Agencies:
Various government agencies, industry associations, administrators, and educators strive to create an innovative and vibrant ecosystem for maritime companies in Singapore.
They do this to encourage startups and innovators to penetrate a relatively under-served and untapped market.
The industry is continually improving through active R&D (research and development) and to support these initiatives. Singapore government has built marine infrastructure such as the Centre for Offshore Research and Engineering, Tropical Marine Science Institute, Maritime Research Centre, etc. These infrastructures provide both skills and knowledge needed to strive in this sector.
With continued support from the government and other agencies, the maritime sector in Singapore will continue to grow. The industry will also be able to put up with the competition from the different areas. Support from government agencies will also be able to attract other investors.
The government should not just support this sector but should also come up with friendly rules. Such rules will be much easier for the players in this industry to comply with. This way, so many investors will flood the industry allowing it to grow at a faster rate.
Sustainable Maritime Transportation System:
To develop and implement global standards for the protection of the marine environment and pollution prevention. The International Maritime Organization (IMO) is working towards ensuring a sensible balance between sustainability and regulation.
These regulations are in the development of a Sustainable Maritime Transportation System. It will help startups in carrying out their maritime activities smoothly.
New business models, new market entrants, new technology, and new customer expectations create an environment of opportunity and risk for startups.
Several maritime service providers in Singapore aim to build a dynamic and innovative ecosystem. They do so for the marine industry by accelerating ventures, attracting investments, and developing talent.
If you are a maritime startup in Singapore, you must attend some mentor-led programs. These programs will provide you access to an extensive network of domain experts, corporate partners, and investors.
Moreover, you will also learn about maritime cybersecurity, immersive technology – AR & VR, wearable technology, the blockchain, etc.
This will help you to run your business quite smoothly. The secret to success in this sector can keep competition in the industry. There are so many companies and countries that are adopting the use of technology.
The maritime industry is fast-moving. The government of Singapore has to take all the necessary steps to make sure it remains at per with this growth. Technology is one thing that should not miss out. It is integral in any maritime sector.