Everyday our dreams get bigger

Reverse Osmosis Building, SingSpring Desalination Plant
Human Capital and Infrastructure
The year saw a 47 percent increase in our global headcount and the establishment of new
offices in China as well as in India. The move is vital in providing support for our expansion and
to enhance our project execution capabilities in existing markets such as China and Singapore
and the development of new overseas markets such as India and the Middle East.
Research & Development
Hyflux continued to invest in R&D to improve its product offerings and the competitiveness of
its processes during the year. As part of this investment, we now have more than 100 staff in
the R&D department, comprising some 50 research scientists and engineers. This enlarged
specialist team provides us with the competitive edge to stay ahead in technological advancement,
application and process development.
Though our key business focus is in water, we are also expanding into industries that are related
to environmental protection and renewable biomass. Our core competency in membrane
technology has enabled us to provide cutting-edge solutions to reduce wastes for these industries
and at competitive cost. An example of this is the use of Hyflux’s proprietary membranes for the
organic acid industry in China.
Our collaboration with local and foreign academia and research institutes will continue to
complement and strengthen our team. In tandem with the development of technologies, we
continue to actively seek ways to commercialise these developments so as to benefit the
industries and to remain competitive.
Looking Ahead to 2006
Going forward, we will intensify our efforts in growing our overseas business and build on our
portfolio of global projects. Although competition is expected to be strong, we will continue to
sharpen our competitive edge. With a well proven track record, we are confident that we will
remain ahead of the competition.
According to World Water Vision, the population worldwide has tripled and water use has
increased six fold in the 21st century. The greatest increase in demand for water is expected
to be from Asia because of the high population concentration and the limited availability of clean
water supply. According to a United Nations Report, Asia is home to 60 percent of the world’s
population and yet, it only has access to 36 percent of the world’s fresh water supply.
In China, 400 of the 669 cities do not have sufficient water supply and 110 cities face severe
water shortages. Currently, 77 percent of its effluent discharges remain untreated and 70 percent
of its population does not have access to safe drinking water.
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