Singapore Attracts New High-Tech,
Logistics Investment
T
he city-state of Singapore drew closer in June to achieving its goal of attracting at least 500 world-class company headquarters by 2010, when eight companies were
honored with the Singapore Economic Development Board's International Headquarters Award. The companies are Allied Technologies Ltd. and Bridge Mobile Pte Ltd. (from Singapore); Electrolux S.E.A. Pte (Sweden); Toyota Tsusho (Singapore) Pte Ltd. (Japan); Blackwell Publishing Services Singapore Pte Ltd. (United Kingdom); Volkswagen Group Singapore Pte Ltd. (Germany); Silicon Application Pte Ltd. (Taiwan); and Avago Technologies (United States).
These companies join about 385 others that have received the headquarters award, many of which conduct their regional or global R&D functions from Singapore thanks to the country's strong intellectual property laws. Logistics and global supply chain management operations also are ubiquitous in Singapore due to its extensive transshipment port facilities and strategic location in the heart of Southeast Asia.
"Singapore is home to companies from different industries, and our eight companies present here today mirror this diversity," noted Mr. Lee Yi Shyan, Singapore's Minister of State for Trade and Industry, at the awards ceremony on June 1. "Apart from locating strategic control, critical decision-making capabilities and shared services here, many of them have decided to use Singapore as their base for higher value-added activities. Here, they are undertaking activities such as R&D, intellectual property management and the setting of global standards."
Added Dato Tan Bian Ee, president of Asia operations for Avago Technologies: "The Singapore team helps Avago manage our global value chain – from R&D to order fulfillment, from manufacturing to marketing. This enables us to extend our market leadership, add value to our customers with best-in-class solutions, and build closer relationships with our customers and stakeholders."
Motorola's Footprint Grows
As if to underscore Singapore's strategic attributes for global technology players, just four days later, on June 5th, Motorola Inc. announced that Singapore would be the location of its global Supply Chain Control Tower (SCCT). The US$60-million investment over the next two years will centralize supply chain management for Motorola's key businesses, including Mobile Devices, Networks & Enterprise and Connected Home Solutions. The center will add about 200 professionals to Motorola's Singapore work force by year-end 2007. The company first established itself in Singapore in 1973 with a sales office and six staff. Today, it employs more than 2,500 there.
"The enhancement of Motorola's key supply chain activities in Singapore reflects our commitment to quality, operational efficiency and excellence at every level," said Ed Zander, Motorola's chairman and CEO at the SCCT announcement. "The investment makes sense for Motorola. Singapore is already the center of competency for many of our key manufacturing and supply chain functions, such as global purchasing, procurement, sourcing and logistics. To ensure that the Supply Chain Control Tower is fully operational by 2008, we will be introducing new supply chain functions and capabilities, as well as expanding those already available in Singapore."
Motorola currently manages over $10 billion worth of activities annually in its supply chain operations, which include manufacturing, distribution operations and the International Trading Centre, which handles Motorola's global third-party component activities.