From the beginning, Singapore's cultural history, economic development, and trajectory of growth have been inextricably tied to water.
From our strategic location along vital maritime routes, a deep natural harbour that has sheltered trade for centuries, and position at the crossroads of shipping lanes that brought diverse peoples and cultures together, water has and will always be the lifeblood of Singapore's progress. And as an island nation with limited land for rainwater collection and no natural freshwater sources of our own – water is also one of our most pressing national challenges.
As Singapore strives to meet increasing water needs of a rapidly growing population and economy, this relationship with water takes on new significance as a city state that must balance our role as a thriving global industrial hub with our fundamental water constraints.
The nation’s economic growth inextricably tied to our capacity to supply sufficient water for expanding industrial operations, while simultaneously ensuring adequate potable water for domestic consumption.
This delicate balance necessitates a strategic approach to water conservation in the non-domestic sector—one that enhances water efficiency without impeding industrial growth. By implementing smarter water management solutions across businesses and industries, Singapore can continue its economic advancement while securing water sustainability for future generations.
The Industrial Water Challenge
Total water demand in Singapore is projected to almost double by 2065, amplified in part by Singapore's industrial growth. The non-domestic is expected to account for more than 60% of water demand, up from 55% currently.
Singapore is not alone in this challenge. Data centres, the rise of artificial intelligence, expanding semiconductor manufacturing, as well as pharmaceutical and medical technology sectors have created unprecedented demands on global water resources.
According to the World Economic Forum, water-intensive sectors like semiconductor manufacturing and data centres will see dramatic increases in water requirements as they expand to meet global demand. A single semiconductor fabrication plant can consume the equivalent of 500 swimming pools of ultra-pure water daily – that’s enough water to serve 33,000 households.
Recognising that their economic futures depend on sustainable water management, many countries such as the United States, Australia and Taiwan are investing heavily in industrial water conservation technologies. Taiwan's semiconductor industry, which faces similar water challenges to Singapore, has made notable strides, with leading companies achieving water recycling rates above 85% and using each drop of water 3.5 times before discharge.
Across the Causeway, the Malaysian National Water Services Commission has developed stringent guidelines requiring data centres to use alternative sources instead of potable drinking water, with the goal of achieving zero percent reliance on potable water within three years.
Singapore’s Unique Challenge
With water-intensive sectors expanding globally and emerging technologies like AI driving even greater water demands, Singapore must remain at the forefront of industrial water conservation.
As it stands, Singapore is already a player in many water-intensive sectors, producing one in ten of the world's semiconductors and hosting many major biomedical and tech operations.
And, the Economic Development Board anticipates that the semiconductor industry will continue to grow in the next decade and beyond. Surging artificial intelligence demand also means data centre capacity is expected to rise by more than a-third, while investments in the biomedical sector are slated to remain on track for growth.
Recent developments highlight the increasing pressure on non-domestic water resources, from Micron Technology’s S$9.5 billion investment in a new semiconductor facility, to AstraZeneca’s $2 billion manufacturing campus, along with plans to build a new national S$500 million semiconductor fabrication research and development facility which will begin operations in 2027.
These industries currently account for about 17% of non-domestic water demand, highlighting the critical need for sustainable water management strategies.
This water-security equation isn't just about resource management; it is fundamentally about business continuity and national resilience. As climate change intensifies and global water stress increases, companies face growing operational risks from water scarcity. For Singapore, a nation with limited natural water resources, the stakes are even higher. The challenge lies in balancing industrial growth with sustainable resource management – while maintaining Singapore's competitive edge and long-term water security.
PUB's Strategic Framework
In response to these challenges, Singapore's National Water Agency, PUB, has established a comprehensive framework of regulation and funding support. PUB not only right-prices water in Singapore to reflect the cost of producing the next drop of this precious resource, but also encourages businesses to prioritise water sustainability. Since January 2024, selected water-intensive industries must adhere to mandatory water recycling requirements.
For instance, new large water users in the wafer fabrication sector must achieve a minimum 50% water recycling rate. This bold move is expected to generate daily water savings equivalent to 15 Olympic-sized swimming pools by 2035.
To support these requirements, PUB has significantly enhanced its Water Efficiency Fund. From 1 July 2023, the funding cap for water recycling projects increased from S$1 million to S$5 million. This enhanced support framework includes:
Since its launch in 2007, PUB has approved more than 380 applications under the Fund. In total, these projects have saved up to 16 million gallons per day.
By adopting a long-term approach and integrate water sustainability into their strategies through recycling and water-efficient systems, companies can reap significant benefits, including cost savings, enhanced competitiveness, and improved resource resilience.
Industry Innovation & Adaptation
PUB notes that industry response to these initiatives has been encouraging, with at least 60 per cent of companies in the industrial sector implementing some form of water recycling. This figure has increased in recent years. Industries such as wafer fabrication, semiconductors, and bio-manufacturing saw water recycling rates rise by 2 to 13 percent between 2018 and 2022.
The improvement in water recycling rates is expected to continue as companies are increasingly viewing water efficiency not just as a compliance requirement, but as a strategic advantage. The median recycling rate among existing wafer fabrication plants already stands at 45%, demonstrating that PUB's new requirements are achievable.
Leading companies such as Hoya Electronics are embracing innovative solutions across their operations. It has achieved a remarkable 75% water recycling rate in its mask blank production, reducing annual water consumption from 190,000 cubic meters to 75,000 cubic meters. This achievement not only demonstrates technical possibility but also delivers substantial cost savings.
The circular economy principles are also gaining traction, with companies implementing closed-loop water systems and exploring zero liquid discharge technologies. These investments in water efficiency are increasingly seen as essential for long-term business competitiveness and resource resilience.
Looking ahead, the path to water sustainability requires continued collaboration between government and industry, and businesses looking to enhance their water sustainability can look into tapping on PUB's technical expertise and expanded funding support to implement water-efficient solutions tailored to their operations.
PUB's enhanced funding and support frameworks provide a strong foundation for companies to innovate and adapt. For businesses, early adoption of water-efficient technologies and practices isn't just about environmental responsibility – it's about securing their business opportunity and operational future in an increasingly water-constrained world.
Check out this space in the coming weeks for our feature stories on leading companies that have successfully partnered with PUB to implement innovative water efficiency initiatives across various industrial sectors.
