More Indian enterprises using S'pore as 'launch pad'
MANY Indian entrepreneurs are increasingly using Singapore as a launch pad to expand their businesses globally, and many others are also setting up operations here.
Dr Balaji Sadasivan, Senior Minister of State for Ministry of Foreign Affairs and Ministry for Information, Communication and the Arts, said Singapore's open-door policy has made it a gateway for international companies, especially those for the US, Europe and Japan to venture into Asia, for four decades.
It is now playing a similar role for rising Asian companies, which are looking to internationalise their operations.
Currently, more than 12,000 US, European and Japanese companies, and more than 14,000 from India, China, Asean, Australia are in Singapore.
Speaking at the Global Indian Business Summit on Thursday, Dr Balaji said Singapore can provide ample opportunities for diaspora Indian companies to network, grow and internationalise their operations.
He cited Satyam Computer Services, which has its global business continuity and disaster recovery centre in Singapore with close to 400 staff, as an example of the growing number of Indian entrepreneurs who have set up base here.
Prime location for HQ
Singapore is currently Satyam's Asian headquarters, covering Japan, Australia, New Zealand, Middle East, Saudi Arabia and South Africa. Their Singapore office also looks after India's domestic market.
Another company with its regional HQ in Singapore is NITT Technologies. Its regional centre here provides support for finance, technology and software delivery to its subsidiaries in Thailand, Hong Kong, Malaysia and Australia. Tech Mahindra has also announced plans to expand its employee pool from 70 to 300 within the next 18 months.
When the expansion is completed, Singapore will also serve as Tech Mahindra's regional HQ.
Aprt from IT companies, Dr Balaji said other Indian businesses are also setting up operations here in Singapore. SP Jain, one of India's top five business schools, has set up a full fledged campus offering both full time and executive MBA programme in Singapore.
Godrej also has a manufacturing plant in Singapore for producing steel office furniture for domestic and export markets.
Indian companies can also use Singapore as a useful platform to network and find partners to expand their global operations.
Global ventures
In June 2007, a three-party joint venture worth US$110 million (S$159 million) between India (Certus Investment Trading), Kuwait (Development Enterprises Holding Company) and Singapore (EDB investments) was inked to build a new petrochemical facility on Jurong Island.
India conglomerate Tata Steel, India's biggest private sector steel manufacturer also bought over Singapore based NatSteel's business in February last year.
Through NatSteel, Tata Steel can enter into NatSteel's existing operations in Thailand and venture into new markets such as Vietnam and Indonesia.
Strong bilateral ties
On Singapore-India relations, Dr Balaji said the Comprehensive Economic Cooperation Agreement (CECA) signed in 2004 has helped create more awareness about the potential of India and encourage the formation of more linkages between the two countries.
India has emerged as the fastest growing trading partner for Singapore and is now the Republic's 12th largest trading partner.
Bilateral trade tripled from S$6.9 billion in 2001 to S$19.9 billion.
Singapore companies have also been investing in India. In 2006 alone, Singapore's total investments amounted to US$ 620 million which comprises 5.6 per cent of all FDI into India.
He said the Global Indian Business Summit plays an important role in engaging successful Indian entrepreneurs around the world and providing a platform for them to meet once a year to generate profitable partnerships.
