Scaling Smart in Small Spaces: Daifuku's Strategic Response to Singapore's Automation Surge
How do you scale automation in one of the world’s most space-constrained cities?
Singapore’s position as a hub for innovation and logistics makes it an exciting—if challenging—arena for automation. With just 735.7 square kilometres of land and a highly competitive landscape, success here is not just about technical excellence—it’s about being agile, people-centric, and forward-looking.
Innovative Solutions for a Smart Nation
Singapore’s transformation into a Smart Nation has made automation more than a trend—it's a necessity. But with space limited, where do we go? Up!
Across sectors, companies are rapidly adopting high-density automated storage and retrieval systems (AS/RS) and other advanced material handling systems to combat rising land costs, labour shortages, and sustainability pressures.
We’re seeing this firsthand. Over the past year, we’ve partnered with clients across various industries to deploy high-rise vertical AS/RS solutions and other advanced automation solutions specifically designed for tight urban spaces. The demand isn’t just about speed—it’s about building future-ready infrastructure that maximizes available space—both horizontal and vertical.
Project Highlights: Solutions that Deliver Results Across Industries
Our recent work features cutting-edge implementations across the healthcare, cold storage, and logistics sectors.
Healthcare innovation at Sengkang General Hospital
Often the image of automation is of factories and warehouses, but automation is applicable in areas where you might not expect—including the front lines of health care. Sengkang General Hospital, Singapore’s first hospital to deploy an automated storage and retrieval system, received positive publicity after winning the prestigious Design AI and Tech Award 2025 for its system, standing out among numerous participants from various industries. The hospital selected Daifuku to deploy this innovative system that handles surgery kits. The installation has significantly improved operational efficiency:
- Halved instrument retrieval times
- Increased storage capacity by 75% within a compact footprint
- Reduced need for manual handling of heavy containers
Cold chain efficiency with CKL
Notably, our project with Commonwealth Kokubo Logistics (CKL) delivered a 40-metre-high AS/RS that offers high-density capacity to support temperature-controlled distribution and supply chain operations.
- Maximised vertical space
- High density storage
- Efficient operations at -25 degrees
Empowering Trade at PSA
As a vital hub in global trade, the Port of Singapore Authority (PSA) plays a critical role in maintaining seamless connectivity between Singapore and the world. To support this, a 40-metre-high Automated Storage and Retrieval System (AS/RS) has been implemented within a bonded warehouse—designed specifically for goods in transit to international destinations.
This vertical solution takes full advantage of Singapore’s limited land but abundant vertical space, enabling high-density pallet storage. The result is a highly efficient system that ensures the facility can accommodate the inventory volumes required to keep trade flowing smoothly.
People-First, Performance-Focused
These projects demonstrate not only the benefits of automation, but underscore our ability to execute with precision on time and under demanding requirements. In Singapore, our customers choose us not only for our advanced technology, but also for the local insight, engineering depth, and responsive service we bring to every.
Further, our team in Singapore is a tight knit group with a culture built on trust, open communication, and shared success. Whether it’s celebrating project milestones or embracing new tech tools, our team is united by a clear purpose: enabling our clients to thrive through automation.
Ready to Scale Smart?
If you’re facing space constraints, labour challenges, or operational inefficiencies in Singapore, automation might be the solution you’ve been looking for. Contact our Daifuku Singapore team to start the conversation.
Matthew Sim
General Manager of Intralogistics, Daifuku Mechatronics Singapore
Matthew joined Daifuku Group in 1996 and is a general manager for the Intralogistics business covering the Singapore market. Matthew graduated with a degree in Business Engineering Management and has been in the material handling industry since 1996.