Investing in growth

Monday, 10th October 2011

To what extent has the presence of government or government-funded venture capital (VC) bodies helped in the development of the local VC industry?  Going forward, what needs to be done to build up Singapore’s VC industry, and should this include the presence of government VC firms?

VC plays a vital role in promoting economic growth as well as fostering entrepreneurship – hence the government does have a vested interest in building up this industry.  In fact, one could argue that rather than withdrawing VC funding from government bodies, even more financial support is required to help give high potential companies the forward thrust they need.

However, greater discretion should perhaps be used when it comes to selecting the industries to pump money into, as well as which companies to invest in.  VC firms should look at sectors that offer potential for high returns such as technology, biotechnology and genetic engineering, among others.

Ronald Lee
Managing Director
PrimeStaff Management Services Pte Ltd