Singapore Economic Development Board (EDB), the lead planning and strategy agency of Singapore government, has been engaging with Indian infrastructure companies looking to expand their global footprints by projecting Singapore as a global business centre. The engagement has grown over the years with more Indian companies set their foot overseas. Lee Eng Keat, international director (Asia-Pacific), Singapore Economic Development Board tells Shubhra Tandon of FE in an e-mail interaction, the role of EDB in this growth and its plans for future involvement.
What is the scope of EDB’s involvement with the Indian infrastructure companies? How has the involvement grown over the years?
EDB engages with leading infrastructure companies with a global outlook and a vision to operate in the global market. Such companies would naturally value what Singapore can offer, in terms of our location, talent and pro-business environment. Companies in Singapore can access global markets through novel financial solutions, transparent and business-friendly policies, supportive government policies, supply chain efficiency, manufacturing efficiencies and global talent pool.
What advantages have Indian infrastructure companies gained through EDB?
Specifically, we help infrastructure companies from India build on our leadership in manufacturing sectors?including maintenance, repair & overhaul (MRO), oil refining and jack-up oil rigs?and differentiate themselves through innovation to develop greater expertise in higher value services. Singapore?s established infrastructure supports the growth and successes of these companies. We also help companies build their regional engineering centres out of Singapore and manage their contracts in the region. We support them in developing engineering solutions in Singapore so that they can tap the large pool of talent that Singapore provides and use these solutions in their regional projects. Indian companies such as Punj Lloyd and Quest Engineering have already set up their regional operations in Singapore to tap the growth potential in the Asia-Pacific region.
How important is the Singapore market for Indian infrastructure companies?
Today, Singapore is India?s largest outbound investment destination, reaching S$23.8 billion in 2011, according to the RBI. Indian investments into Singapore have grown eight times since the signing of the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) in 2005. Finally, Singapore is also a top listing venue for business trusts in Asia, having raised S$1.6 billion (US$1.3 billion) via business listings this year. Singapore has had special regulations for business trusts for the last ten years now.
What is the size of investments made by Indian infrastructure companies in Singapore?
Punj Lloyd acquired Singapore firm Sembawang Engineers & Constructors, which amounted to a total investment of $40.1 million by 2007. Amongst its Southeast Asian projects, which constitute over 20% of Punj Lloyd?s operations globally, the Singapore team has executed a major $450 million turnkey project at the $2 billion Jurong Aromatics Corporation (JAC) Complex. QuEST Global Engineering committed $50m to set up a 60-member global headquarters team in Singapore in 2010 tapping on Singapore?s status as an MRO hub to grow its aerospace and oil & gas sectors. Essar Projects set up a Singapore subsidiary to execute a $320m order for the Singapore Jurong Aromatic Corporation.
