The Companies of the Digital World in Singapore

On first glance, it seems that the Dot Com era is roaring back in the U.S. Today, companies like Google IncFacebook Inc, and Linkedin Corp are favourites amongst investors again.

Those tech-related companies tend to be mostly located and listed in the U.S.A as the country has always been a hotspot for innovation and technology. But, investors in Singapore who are looking to invest in this space do have their choices as well.

In fact, there are some interesting companies listed in Singapore that might benefit from the growing innovation in the tech-sphere.

The infrastructure guys

We do not think much about how the internet actually works. We simply make use of it to surf the web on our computers and/or our mobile devices. However, massive infrastructure is actually needed to make our internet run smoothly. Remember the days when we were using dial-up modems? The superfast connection speeds we’re so used to today did not just appear out of thin air.

Data centres are part of the backbone of the internet infrastructure. When we talk about storing all our data in the cloud, the data centres are the “cloud”. Newly-listed late last yearKeppel DC REIT (SGX: AJBU) is the only data centre REIT listed in Singapore. With the huge and growing demand for more data and more storage, data centres might be here to stay for years to come.

The software infrastructure guys

How can we miss out on software infrastructure after speaking about hardware infrastructure? With more and more of our work being done online (lots of paperwork used to be done on real paper for instance), software infrastructure actually plays a big role in our society.

Silverlake Axis Ltd (SGX: 5CP) provides core software for many financial institutions in Asia. Indeed, of Southeast Asia’s top 20 largest banks, more than 40% of them actually run Silverlake Axis’s core banking solution.

The banking software firm has been one of the fastest growing companies in the software space in the region; over the past five years, Silverlake Axis has been compounding its revenue and net income at impressive annual rates of 22.8% and 27.1% respectively. With the company trading at a high price to earnings (PE) ratio of 28, the market expects strong growth ahead for the firm.

The new generation tech

Lastly, although Facebook is likely what most people think about when the term “social media” is used, there are actually many different social media companies out there.

There’s even one in Singapore, namely Yuuzoo Corporation Ltd (SGX: AFC). Listed back in 2014 through a reverse takeover, Yuuzoo is a new-age tech-firm that wouldn’t be out of place in the U.S.

According to its own website,  Yuuzoo helps customers create their own social network where they have more flexibility in customizing their network for users. There’s also more to Yuuzoo – for instance, it even has its own digital payment system called YuuPay.

The company is still tiny compared to the giants in its space like Facebook. In 2013, Yuuzoo managed to earn revenue of about US$32.8 million and looks set to have a similar or higher revenue in 2014 given that sales for the first nine months of the year came in at S$24.9 million, up from S$19.8 million in the same period in 2013.

Foolish Summary

So, there you have it, some bona fide tech companies that are in Singapore. For investors thinking that there is a lack of choices to get exposure to the tech space, the aforementioned trio are just some of the companies that might interest you.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.