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IDM Flash Report 2010

Deloitte Consulting has completed the IDM Flash Study covering 2007-2009. This study was done together with EDB, IDA, & MICA, and in consultation with DOS. It is a “bottom up” study, with responses from 152 companies (out of 731 companies in the sector) representing 80% of the VA in 2009. Some of the findings from the study are highlighted as follows:

Despite a recessionary economy in 2009, the IDM Sector has been resilient and its VA continues to grow at 15% CAGR (2008-09). This is 18% above the Singapore GDP growth over the same period. Over 2007-09, the IDM Sector VA grew by 20% CAGR.
IDM Sector VA grew 15% to $867m in 2009, while Employment grew 7% to 8117 jobs. Slower growth in employment dampened VA growth over 2008-09. Nevertheless, Singapore’s IDM sector has weathered the storm well, with the economic downturn in 2008-2009 having no impact on IDM revenue growth (CAGR of 16% over 2008-09 vs 15% over 2007-08).
The report suggests that S$266m of VA and over 2,001 jobs were added to the IDM sector since 2007. Over the 3 year period from 2007-09, the IDM sector VA grew 20% while Employment grew 15%. VA growth over 2007-08 was driven by forward investment through advance staffing in that growing economy.
The IDM Sector has been building up its indigenous segment.
1. About 80% of the IDM sector establishments are the local companies and are growing at 18% over 2007 to 2009 (an increment of 165 companies). The IDM sector is still predominantly driven by the SMEs that make up 68% of the IDM sector establishments.
2. Furthermore, local companies contributed to 68% of the overall IDM VA and their VA growth over 2007-09 was 20%.
Deloitte estimates that IDMPO funding has contributed directly and indirectly to around 20% of the total post-2005 VA and about 40% of the total post-2005 employment in the Core IDM sector. We can compare this to IDMPO's tracking of KPIs resulting from only directly funded R&D contributions. Deloitte's numbers are aligned to IDMPO’s own tracking of its KPIs from performance updates submitted by our funded companies (as of Dec 2010), where Actual Investments in Singapore directly resulting from our R&D projects amounted to $75m, with employment of RSEs & start-up entrepreneurs amounted to 1586 jobs.