To help resolve challenges ahead, Singapore aims to build the world’s first “Smart Nation” where sensors nationwide collect data in a web that allows both government and private parties to act upon such challenges and come up with creative solutions. We have identified companies in five segments under our coverage that could benefit from this, namely: telco, transport, technology, property and consumer.
■ Singapore to build the world’s first “Smart Nation” to help resolve challenges
The country has an ambitious goal to take the smart city concept one step further nationwide by building a “Smart Nation”. This is to resolve the upcoming challenges ahead, which include an aging population and increasing urban density. Sensors nationwide are to collect data in a web that allows government and private parties to act upon such challenges and come up with creative solutions. Various initiatives are already underway including a Smart Nation Platform (SNP) – ie a nationwide Internet of Things (IoT), a Smart Mobility plan and a pilot district at Jurong Lake.
We believe that telco operators would be key beneficiaries of the Smart Nation drive as leading enablers for the eco-system. Also, rising demand for cloud computing should benefit Singtel, Starhub and M1.
i) Singapore Technologies Engineering (ST Engineering) benefitting in the near term on smart traffic management systems in Jurong, and
ii) ComfortDelGro and SMRT Corp for the long term under Singapore’s Smart Mobility plan, with benefits arising from increased ridership and lower operating costs.
Technology companies like Neratel (benefitting from the increase in data usage), Trek 2000 International (Trek 2000) (new innovations to capture the IoT market) and IPS Securex (involved in high-tech security systems) are potential beneficiaries of this Smart Nation evolution.
Aligned closely with the Government, property developers like CapitaLand and City Developments are constructing smart buildings with “green targets” like energy and water efficiency in mind.
In the consumer sector, supermarkets like Sheng Siong and Dairy Farm should benefit from automation, while Singapore Post’s (SingPost) logistics services ought to ride on growing e-commerce sales. (Read Report)
Source : RHB Research