Singapore 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 a great opportunity for startups to create innovation-driven growth. This industry has a lot of scope in various areas such as maritime and offshore engineering, marine insurance, ship management, ship broking, 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, thus improving productivity. This industry offers immense opportunities for startups, but simultaneously, startups may encounter certain 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 and productivity, the pace of adoption is very moderate. Industry players need to take proactive actions to propel the industry further.
Growing Regulatory Burden:
One of the major concerns for maritime industry is – changing regulatory compliance and environmental issues. It requires companies to invest in stronger and stringent risk management programs, in order to set up the right technological structures, protocols, and procedures, and stay at the forefront of change.
Lack of Skilled Workforce:
The maritime industry lacks a skilled workforce to keep pace with fast technological changes. As a matter of fact, 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 and groom them with a global perspective.
Singapore Maritime Services for Startups in 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, saving the industry up to billions of dollars. Digitization has enabled organizations to engage with their customers and address their needs in an efficient manner.
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 to encourage startups and innovators to penetrate a relatively under-served and untapped market. The industry is constantly 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.
Sustainable Maritime Transportation System:
In order 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 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 for the maritime industry by accelerating ventures, attracting investments, and building talent. If you are a maritime startup in Singapore, you must attend some mentor-led programs that provide you access to a large 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.