Germany continues to serve as a prime entry point into Europe for Singaporean companies, now attracting even more interest due to aligned growth sectors. Key industries such as medtech, climate tech, Industry 4.0, smart cities, logistics, fintech, and insurtech present lucrative opportunities for Singaporean startups, according to Linda Nguyen Schindler, director of the Artificial Intelligence Competence Centre (Asia) at Start2 Group.

One notable case is the Singapore startup TeleMedC, which ventured into Germany in 2021, lured by the promise of accessing the European market through its robust medtech sector. Founder Para Segaram emphasized that successfully entering the German market can provide a pathway to the entire European market.

As Europe’s largest economy, Germany is Singapore’s main goods trading partner in Europe and has become an increasingly popular destination for direct investment from Singapore, which reached S$6.6 billion in 2022—surpassing pre-COVID levels. The two nations share a strong focus on manufacturing, with this sector contributing roughly 20% to Germany’s economy, mirroring Singapore’s economic profile.

The growing emphasis on the tech and digital economy in Germany aligns with Singapore’s strategic shift towards the Indo-Pacific, making the region more attractive for investments. Accelerator programs, such as those facilitated by Start2 Group and Enterprise Singapore, have helped over 60 startups access markets in Munich and Berlin.

Established companies are also capitalizing on new opportunities in Germany. Accuron Technologies, a precision manufacturing group owned by Temasek, was the first to enter the German market with its subsidiary, Singapore Aerospace Manufacturing, which has thrived since acquiring an original equipment manufacturer in 2001. Today, the facility employs 250 staff and produces parts for aerospace giants like Airbus and Boeing.

Accuron’s CEO, Tan Kai Hoe, noted that Germany’s central location and its highly skilled workforce make it an ideal hub for engineering and industrial solutions. He remarked on the cultural similarities between Singapore and Germany, particularly in terms of work ethic and direct communication.

Additionally, newer companies are finding success by entering the German market independently. For example, D-SIMLAB, a spin-off from the Agency for Science, Technology and Research, began collaborating with German semiconductor manufacturers early on, establishing a reputation for innovation and reliability.

Germany’s medtech market is especially noteworthy, being the third largest globally, projected to reach nearly US$40 billion by 2024. TeleMedC’s AI technology aims to revolutionize disease detection, particularly in diabetes and glaucoma, aligning with Germany’s ageing population and high rates of these conditions.

Supported by EnterpriseSG, D-SIMLAB is exploring further expansion into countries like the Netherlands and France, capitalizing on established networks and growth opportunities in the semiconductor sector.

Overall, Germany remains a land of opportunity for Singapore companies, particularly in sectors like innovation, green technology, lifestyle, and logistics. In 2023, EnterpriseSG assisted 220 companies in establishing a foothold in Europe, reflecting a growing trend of Singaporean firms seeking to tap into the continent’s potential.