Singapore paves way for local space tech start-ups to take flight on global stage

This comes as technological advances have made it possible for smaller players to thrive in the space scene, said observers. 

The local space industry now comprises more than 2,000 professionals working in over 60 companies, said the Office for Space Technology & Industry (OSTIn), Singapore’s national space office. 

Mr Jonathan Hung, executive director of the OSTIn, said: “Singapore is an ideal location for deep tech companies to locate their business and headquarter activities, including those from the space industry."

He added that the OSTIn will build on Singapore’s growing space ecosystem through working with local and international partners.

LOWERING ENTRY BARRIERS FOR SMALLER PLAYERS

Enterprise Singapore, which supports the growth of start-ups locally, said there is a growing global demand for satellite-based services, from telecommunications to earth observation, as the need for a more connected world with greater accessibility increases.

Singapore offers “a very conducive environment for innovation and start-ups”, and many companies are using the country as a base to tap growth opportunities, said Mr Soh Leng Wan, assistant chief executive of manufacturing and engineering at EnterpriseSG.

Last year alone, the sector launched nine satellites carrying technologies developed by local companies. 

“We are likely going to see an exponential growth in our low Earth orbit-based small satellites and constellations. We are talking about possibly thousands of satellites being launched annually globally,” said Mr Soh. 

“This in turn will drive the whole downstream value chain of activities, be it in subsistence manufacturing, networking, equipment, services and applications, where I think our space tech start-ups are trying to venture into.”

EnterpriseSG is hoping to improve access to testing and launch facilities in the country, which can lower the barriers of entry for smaller space tech players.

Mr Soh said the government is also putting “a lot of effort to nurture” the sector. 

In 2022, Singapore announced that it will be investing S$150 million (US$111 million) to help firms research and develop the country’s space capabilities.

EnterpriseSG is also seeing increasing private sector interest and funding into the space tech industry. 

SECTOR SET TO GROW

Local space tech start-up Equatorial Space Systems, which was founded in 2017, has managed to raise some US$2.6 million in funding to develop hybrid rockets that are non-explosive.

“We have witnessed a resilient interest in space tech, far more resilient than to more fluctuating industries,” said Equatorial Space founder Simon Gwozdz. 

“I think more investors, including commercial investors, who have never previously looked seriously at space technologies are seeing that (the space scene) is here to stay and it’s here to grow relentlessly.”

However, the company has been sending the rockets elsewhere for testing, due to space constraints in Singapore.

“Singapore is spatially compact, and it's difficult to find places for testing of our systems. So for that reason, we have to maintain presence in a couple of different countries internationally, where we can quite literally find more space,” said Mr Gwozdz. 

“However, we have seen strong support from the government (and) there is an interest in what we are working on. 

“And commercial space is booming in general in Singapore, so we find ourselves in a very fertile ground to scale and grow.”

MORE INTERNATIONAL PUSH NEEDED

Another local space tech firm Aliena is looking at solutions to fly satellites close to the Earth. 

This can help collect higher quality data of the planet through high resolution images and lower lag in communications.

It has developed a chamber that mimics the environment in outer space with the absence of particles. This helps engineers and scientists test out engines that will allow satellites to move around in space.

Aliena has observed a seven-fold increase in component orders in the last couple of years, mostly from the international market. 

But it said Singapore firms still have light years to go before making it big on the global platform.