Keynote address given at the International Conference on Entrepreneurship Education (ICONEE) 2014 organized by Ciputra University, Aug 2014

1. NUS Entrepreneurship Centre
1
Technology Entrepreneurship in ASEAN: Opportunities & Challenges Wong Poh Kam Professor, NUS Business School Director, NUS Entrepreneurship Centre
All content © 2013 NUS Entrepreneurship Centre. This file may be freely shared in its entirety as long as the attribution of copyright is intact.
NUS Entrepreneurship Centre

2. NUS Entrepreneurship Centre
The ASEAN Region:
•
Large and Fast Growing Market, but Fragmented
•
Rich Diversity, but Complementarities Under-Realized due to Under-Integration
•
Large Diasporas in Advanced Economies, but Under- Developed Entrepreneurial Linkages
A Conundrum of Under-Exploited Opportunities
© WONG Poh Kam

3. NUS Entrepreneurship Centre
ASEAN: A Dynamic Region of 600 Million People & US$2 Trillion Market
3

4. NUS Entrepreneurship Centre
Market Size only slightly less than India (in PPP terms)
4
Source: The Asean Secretariat, ASEAN Economic Community Chartbook 2013, Jakarta March 2014

5. NUS Entrepreneurship Centre
GDP in US$B PPP vs. Real GDP growth, 2012
5
Source: The Asean Secretariat, ASEAN Economic Community Chartbook 2013, Jakarta March 2014

6. NUS Entrepreneurship Centre
Trade Growth: Faster External than Internal
6
Source: The Asean Secretariat, ASEAN Economic Community Chartbook 2013, Jakarta March 2014

7. NUS Entrepreneurship Centre
Trade as % of GDP
7
Source: The Asean Secretariat, ASEAN Economic Community Chartbook 2013, Jakarta March 2014

8. NUS Entrepreneurship Centre
Strong Net Inflow of DFI into ASEAN
8
Source: The Asean Secretariat, ASEAN Economic Community Chartbook 2013, Jakarta March 2014

9. NUS Entrepreneurship Centre
On a Per Capita Basis, DFI in ASEAN is comparable to China
9

10. NUS Entrepreneurship Centre
…A rapidly rising Middle Class
10

11. NUS Entrepreneurship Centre
…and Rapid Growth of Online Users in ASEAN 11
Source: UBS

12. NUS Entrepreneurship Centre
The Vision of ASEAN Economic Community (AEC) 2015
12
Source: The Asean Secretariat, ASEAN Economic Community Chartbook 2013, Jakarta March 2014

13. NUS Entrepreneurship Centre
13
Total Entrepreneurial Activity (TEA) Rates for ASEAN Countries 2000-2013
1Percentage of 18-64 population who are either a nascent entrepreneur or owner- manager of a new business Source: GEM
Total early-stage Entrepreneurial Activity (TEA)1 (%)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Indonesia
19.3
25.5
Malaysia
11.1
4.4
5.0
4.9
7.0
6.6
Philippines
20.4
18.5
Singapore
4.2
6.6
5.9
4.9
5.7
7.2
4.8
6.6
11.6
10.7
Thailand
18.9
20.7
15.2
26.9
19.5
18.9
17.7
Vietnam
15.4

14. NUS Entrepreneurship Centre
14
TEA1 Rates for ASEAN Countries 2009-2013: Except for Singapore (& Malaysia), Dominated by Rural Self- Employment & Low Growth Urban Small Businesses
1Percentage of 18-64 population who are either a nascent entrepreneur or owner- manager of a new business Source: GEM
Indonesia
Malaysia
Philippines
Singapore
Thailand
Vietnam
0
5
10
15
20
25
30
2009
2010
2011
2012
2013
TEA (%)

15. NUS Entrepreneurship Centre
TEA (Early-Stage Entrepreneurial Activity) Rate and GDP per capita, 2006
0% 5% 10% 15% 20% 25% 010,00020,00030,00040,00050,000GDP per Capita 2006, in Power Purchasing Parities (PPP) Percentage of population between 18-64 years Early-stage Entrepreurial Activity (TEA rate) 2006TEA rate United Arab Emirates Fitted 3rd order polynomial - Arab Emirates and Peru excludedESUSISDKAUCAFIBESEDEJPNLFRUKITSIGRCZHUARMYHRCLLVSARUMXTRSGUYINBRTHCNIDJAPHCOUAIENO FR
Source: Wong(2007)

16. NUS Entrepreneurship Centre
16
Growing Exploitation of Technology Entrepreneurial Opportunities
•
Rapid Growth of Technology Start-Ups
•
Significant Increase in Venture Capital Funding & Venture Intermediaries
•
Growing Inflow of foreign entrepreneurs into the region
•
Improving Government Support for Entrepreneurship Ecosystem Development
•
Growing Visibility of “Successful” Exits …But Pan-ASEAN Opportunities Remain Under- Exploited
© WONG Poh Kam

17. NUS Entrepreneurship Centre
17
Formation of High Tech firms has outpaced that of non High Tech firms in Singapore since 2004
KEY POINTS
•
In last five years, formation of high-tech firms has outpaced formation of non high-tech firms.
•
Growth in new high-tech manufacturing firms has been especially high.
4.24.73.66.52.39.04.25.74.24.50.01.02.03.04.05.06.07.08.09.010.01999-20092004-2009 Average Annual Growth (%) ALL SectorsAll High-TechHigh-TechManufacturingHigh-TechServicesNon High TechSectors
Source: Wong P.K. (2011), NRF Study of High Tech StartUp in Singapore
© WONG Poh Kam

18. NUS Entrepreneurship Centre
Start-up* Share of Singapore Employment (2004 - 2009)
2004
2005
2006
2007
2008
2009
2004-2009
No. of employees in start-ups
152,805
164,886
191,256
241,874
292,324
306,242
1,349,387
Total no. of employees in Singapore
2,238,100
2,266,700
2,505,800
2,631,900
2,858,100
2,905,900
15,406,500
6.8
7.3
7.6
9.2
10.2
10.5
8.8
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2004
2005
2006
2007
2008
2009
2004-2009
% of Sinagpore employment
* Young firms less than 5 years old
Source: Wong Poh Kam et. al. (2011), Study on High Tech Start-Ups in Singapore, Research Report commissioned by NRF
© WONG Poh Kam

19. NUS Entrepreneurship Centre
19
Source: Monk’s Hill Ventures
http://www.monkshill.com/views/2014/8/11/startup- acquisitions-in-asia-southeast-asia
Growing Tech M&A Exits in S.E. Asia

20. NUS Entrepreneurship Centre
20
Some Recent VC Fund Entering ASEAN Economies
•
Singapore
•
Jungle Ventures
•
Monk’s Hill Ventures
•
Golden Gate Ventures (US)
•
Rakuten Ventures (Japan)
•
Indonesia
•
Indigo Fenox Incubator (Fenox Venture Capital (Japan) & Telkom)
•
East Ventures (Japan)
•
Sovereign’s Capital (US)
•
Thailand
•
ArdentCapital (Siemer Ventures (USA), RSP (Japan) & GMO Venture Partners (Japan))
•
Malaysia
•
Straits Fund I (Elixir Capital (US))
© WONG Poh Kam

21. NUS Entrepreneurship Centre
21
Examples of Recent Exits
•
Singapore
•
Non-Stop Games, acquired by Candy CrushSaga Maker King (US)
•
Zopim, acquired by Zentek (US) for US$30 Mil Cash & Stocks
•
Viki, acquired by Rakuten (Japan) for US$200 Mil
•
TenCube acquired by McAfee (US)
•
Indonesia
•
Detik.com acquired by Para Group (Indonesia)
•
Maxitech acquired by Corous360 (Singapore)
•
PriceArea acquired by Yello Mobile (Korea)
•
Malaysia
•
Jobstreet acquired by Seek (Australia) for US$523.5 Mil.
•
MOL (filed for US IPO listing US$300 Mil)
•
Thailand
•
Tarad.com acquired by Rakuten (Japan)
© WONG Poh Kam

22. NUS Entrepreneurship Centre
22
Overcoming Market Fragmentation
•
Development of Pan-ASEAN Venture Capital Funds
•
Development of Cross-Border Linkages between Early Stage Investors
•
Entrepreneurs with Regional Connections and Global Visions
•
Increasing Networking & Exchange among university students in ASEAN countries to facilitate Pan-ASEAN startup team formations
•
National Policies facilitating entry of foreign entrepreneurs in general & Intra-ASEAN entrepreneurial linkages in particular
•
Acceleration of the Implementation of the AEC Vision
© WONG Poh Kam

23. NUS Entrepreneurship Centre
23
Promoting Pan-ASEAN Technology Entrepreneurship Development: Some Initiatives by NUS Enterprise

24. NUS Entrepreneurship Centre
24
ASEANpreneurs: An Initiative of NUS Entrepreneurship Society (NES) Supported by NUS Enterprise

25. NUS Entrepreneurship Centre
25
e27: A media & event company focused on Southeast Asian tech entrepreneurship community founded by NUS alumni and incubated and invested in by NUS Enterprise

26. NUS Entrepreneurship Centre
26
Asian Business Angel Forum (ABAF): Annual Forum to bring Angel Investors from around Asia together to promote cross- border investing
ABAF 2014, Hong Kong
ABAF 2013, Mumbai
Inaugural event in Singapore organized by BANSEA & NUS Enterprise

27. NUS Entrepreneurship Centre
27
ASEAN-Silicon Valley Entrepreneurial Network (ASVEN) – an NUS Enterprise Initiative to build entrepreneurial link between ASEAN & Silicon Valley

28. NUS Entrepreneurship Centre
THANK YOU
&
Q&A