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SingaporeInvestment NewsSingapore nurtures talent for Asia and beyond

October - December 2011

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Contents

02 BUSINESS BRIEFS

05 FEATUREIndian companies eye Singapore as internationalisation gatewayMajor infrastructure companies from India like Punj Lloyd see Singapore as an ideal launch pad to penetrate markets in Southeast Asia and beyond.

08 FEATUREAsia’s talent generatorWith its excellent location, high quality of life and a variety of leadership development programmes to choose from, Singapore is bolstering its standing as a dynamic global city.

12 REPORTDeloitte partners EDB for data analytics think tankDeloitte establishes its first Asia-Pacific data analytics think tank in Singapore as part of its strategy to enhance its regional capabilities in the rapidly developing field of data analytics.

14 REPORTSingapore’s chemical industry gets a boost with JAC’s aromatics plantThe latest addition to Jurong Island bodes well for the Republic’s reputation as a leading chemical hub.

16 REPORTCoca-Cola opens new concentrate plant in SingaporeNew concentrate manufacturing plant leverages Singapore’s regional connectivity and skilled manpower to support The Coca-Cola Company’s growth in Asia Pacific.

18 REPORTLiving with green energySingapore partners Panasonic for the first total energy solutions public housing test-bed in Asia.

20 REPORTMoulding into a regional hubSingapore’s dynamic and strategic business environment has contributed to Borouge’s status as a global powerhouse for innovative plastics solutions.

22 SPECIALFuture Ready Today_This special series of articles discusses what tomorrow’s challenges mean for today’s businesses. In this issue, we look at how Asia is flourishing as the new centre for the arts amid rapid economic growth and Singapore’s efforts to position itself as a hub for the visual arts industry.

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Business Briefs

Gao Jifan, Chairman and CEO of Trina Solar, at the inaugural PV Asia Pacific Expo, held as part of the Singapore International Energy Week 2011

Sinopec executives break ground in Singapore for the company’s first lubricant plant outside China

Trina Solar sets up regional HQ in Singapore

Trina Solar, a leading integrated manufacturer of solar photovoltaic (PV) products worldwide, is establishing its Asia-Pacific operating headquarters in Singapore tostrengthen its growing presence and customer base in the region. This comes on top of Trina Solar’s existing collaboration with the Solar Energy Research Institute of Singapore to develop high-efficiency back-contact solar cells.

The new administrative region is expected to include Singapore, Thailand, Malaysia, the Philippines, India, Japan, Australia, New Zealand and South Korea, extending to the Middle East and South Africa in the future. Over the next few years, the Singapore office is expected to contribute significantly to the company’s global sales.

Asia is widely regarded as the new growth frontier for the clean energy sector, and China has emerged as a global powerhouse in the industry. Increasingly, Singapore complements China’s growth by providing a platform for Chinese clean energy companies like Trina Solar to internationalise their business.

“Singapore’s excellent investment environment, combined with its skilled talent base and strong logistics infrastructure, makes it a strategically advantageous location for Trina Solar to establish our regional headquarters,” said Gao Jifan, Chairman and CEO, Trina Solar. �

Sinopec builds lubricant plant in Singapore

Sinopec Lubricants, a subsidiary of the world’s second largest oil refiner, is set to build its first lubricant plant outside China in Singapore in an effort to establish Sinopec’s brand presence in Southeast Asia. The project is Sinopec’s first manufacturing investment in Singapore and demonstrates growing ties between the two countries. In addition, the plant marks the company’s first wholly owned greenfield international investment in the oil and gas downstream. When the US$91 million (S$115.8 million) facility is completed in September 2012, it will serve as the company’s regional hub for production, servicing and logistics in the Asia Pacific, including Australia and New Zealand. To cope with the demand for lubricants in the region, the 40,000-square-metre plant is expected to produce 100,000 tonnes of lubricants annually.

During the groundbreaking ceremony on 28 July, Lim Swee Nian, Assistant Managing Director, Singapore Economic Development Board, noted that Singapore has the right ecology of suppliers and service providers to support lubricant manufacturers like Sinopec. They can also leverage Singapore’s excellent trade and physical connectivity to understand and access international markets.

“For Chinese companies, logistics and cultural connectivity to China is important. Singapore can serve as the internationalisation platform for many Chinese firms by serving as a cultural and logistical bridge,” Lim said. �

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The opening ceremony of MS-R&D was officiated by Lim Chuan Poh, Chairman, A*STAR (third from left)

Mitsui Chemicals opens R&D centre

On 9 September, Mitsui Chemicals, Inc. (MCI) held a ceremony to commemorate the establishment of its first research and development (R&D) facility outside Japan. The new Mitsui Chemicals Singapore R&D Centre (MS-R&D) in the Singapore Science Park marks the company’s fourth major investment in Singapore.

MCI believes Singapore is the ideal location as it is a top player in the growing Asian chemicals market and offers world-class access to strategic markets. The Singapore government’s support for companies relocating their R&D facilities to the country is a further boon.

By tapping into Singapore’s strategic location, MS-R&D will be able to combine R&D with business model development to enhance new business opportunities and develop MCI’s human resource base. This puts MCI in a better position to strengthen its core business, accelerate globalisation and enhance its business presence in Asia.

Speaking at MS-R&D’s opening ceremony, Lim Chuan Poh, Chairman of the Agency for Science, Technology and Research (A*STAR), said, “I am confident that this R&D centre will produce many innovative technologies and products, which will play a key role in the development of MCI’s global business. A*STAR also looks forward to many productive collaborations with the Mitsui R&D Centre in Singapore.” �

Electronic payment network, Visa Inc., has expanded its office in Singapore to support its growing operations in Asia Pacific, where electronic forms of payment, particularly debit and pre-paid cards, continue to gain popularity. According to Elizabeth Buse, Group President for Asia Pacific, Central Europe, Middle East and Africa, Visa Inc., the growth can be attributed to economic expansion in the Asia Pacific, with a growingmiddle class spurring intra-regional trade.

At the opening of the new Singapore office, located at 71 Robinson Road, Buse said the city-state is now home to most of Visa’s operations outside the United States and the office expansion is indicative of Visa’s confidence in Singapore as an ideal place to live and work. “In less than four years, the number of Visa employees in Singapore has grown significantly. This is a tribute to the strength and potential growth opportunity of our business,” said Buse.

Congratulating Visa on the opening of its expanded Singapore office, Quek Swee Kuan, Assistant Managing Director, Singapore Economic Development Board, said, “We are delighted that Singapore has been a key partner to Visa as it grows its operations internationally. Visa’s decision affirms Singapore’s value proposition as the preferred home for international companies to locate their key business functions and leadership teams to drive their business in Asia and globally.” �

Visa expands Singapore office

(left to right) Andrew Tan, Global Finance Executive, Visa; Quek Swee Kuan, Assistant Managing Director, EDB; Elizabeth Buse, Group President for Asia Pacific, Central Europe, Middle East and Africa, Visa; and Rene Ho, Senior Executive, VISA, at the ribbon-cutting ceremony to open Visa’s new Singapore office

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Zeon opens new synthetic rubber plant on Jurong Island

Japan’s Zeon Corporation marked its first major investment in Singapore when it broke ground for its S$240 million (US$188.5 million) synthetic rubber plant on Jurong Island on 1 September. The Solution Polymerized Styrene-Butadiene Rubber (S-SBR) facility aims to meet the rising demand for environment-friendly and fuel-efficient tyres across Asia.

The investment is in line with Zeon’s goal of doubling its output for tyre grade S-SBR to over 20 per cent of its global synthetic rubber production capacity. Using unique technology suitable for the silica compound, the plant will produce tyres with low rolling resistance and a good wet grip.

Singapore’s strong IP protection regime and proximity to regional markets, and access to feedstock supplies on Jurong Island are key factors for chemical companies like Zeon to set up operations here. “Jurong Island’s vibrant and unique ecosystem of companies in the petrochemical industry also supports Zeon’s pioneering pursuit of high performance SSBR products,” said Naozumi Furukawa, President and CEO, Zeon Corporation. �

Business Briefs

Kagami Biraki ceremony at Zeon Corporation’s S-SBR dinner celebration during the groundbreaking ceremony

PAREXEL partners NUS to hone clinical research talent in Asia

A new postgraduate certificate programme in Singapore aims to meet the increasing demand for clinical research talent in Asia. The programme stems from a partnership between PAREXEL International Corporation and the National University of Singapore (NUS), through the NUS Academy of GxP Excellence (NUSAGE) of its Department of Pharmacy.

The 10-week Postgraduate Certificate in Good Clinical Practice will cover topics such as drug development processes, regulatory affairs and conducting clinical research. According to Dr Albert Siu, Vice President, Learning and Development, PAREXEL International, course graduates will be empowered to make a difference in the delivery of innovative new treatments to patients. The programme will also equip clinical development professionals with critical skills to translate research into quality healthcare solutions for patients.

“NUSAGE is glad to partner PAREXEL to enable the next generation of clinical development professionals to effectively and efficiently move research out of the laboratory into clinical studies – ultimately to bring significant life-saving treatments to patients in Asia and around the world,” said Associate Professor Chan Sui Yung, Head of the Department of Pharmacy, NUS. �

Associate Professor Chan Sui Yung, Head of the Department of Pharmacy, NUS (left) and Josef H. von Rickenbach, Chairman of the Board and CEO, PAREXEL International (right), seal the partnership for the new postgraduate certificate programme with a handshake

Indian companies eye Singapore as internationalisation gateway

Major infrastructure companies from India like Punj Lloyd see Singapore as an ideal launch pad to penetrate markets in Southeast Asia and beyond.

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Feature

Along with China, India has been in the spotlight in recent years as a rapidly emerging global economic player. The country has long been known as a digital

and information technology (IT) powerhouse. This time, however, India is making its international presence felt in another area: Infrastructure development.

Heera Redevelopment Project, India. Punj Lloyd won the bid for this prestigious project in Mumbai in 2007 based on the experience of its subsidiary, PT Sempec Indonesia, which was acquired as part of the Singapore-based Sembawang E&C

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Feature

Reserve Bank of India statistics

indicate that 23 per cent of India’s

outbound foreign direct investment

value came through Singapore

in 2010.

project developers to channel money raised from the markets into potential green field projects.

Indian Companies Take the First StepTaking into account the many advantages that Singapore affords businesses, it comes as no surprise that major Indian companies are expanding into Southeast Asia and beyond via the city-state. In fact, Reserve Bank of India statistics indicate that 23 per cent of India’s outbound foreign direct investment value came through Singapore in 2010. In recent times, two Indian infrastructure giants, Punj Lloyd and Lanco, have established their presence in Singapore as a first step towards international expansion. These companies view Singapore as their gateway to Southeast Asia, given the country’s deep financial market and strong regional and global links. Singapore’s proximity to large Asian export markets like China, South Korea, Thailand and Taiwan also makes it the ideal location to establish their global procurement and purchasing functions to fuel projects in India and around the world. Punj Lloyd Singapore is now the de facto holding company for Punj Lloyd’s subsidiaries in Asia Pacific. Operations and decisions concerning the company’s Southeast Asian expansion come from senior management holding office in the city-state. In addition, Singapore is the resource and project management hub for its 3,200 engineers in the region. “Singapore’s infrastructure development is among the best in the world and backed by a proactive government. Our focus in the

India’s brisk economic growth has paved the way for rapid urbanisation in its major cities. This has given rise to huge infrastructure investments that are, in turn, fuelling much of the country’s development. In its 12th Five Year Plan, India projected infrastructure investment of a whopping US$1 trillion (S$1.27 trillion) over the next five years. This figure is expected to go up even more: Experts peg that the country will account for six to seven per cent of the global construction market by 2020, trailing only China and the United States.

Given the country’s vitality, major players in India’s infrastructure sector such as Larsen & Toubro, Punj Lloyd Group (Punj Lloyd), Lanco Infratech Limited (Lanco), The Jaypee Group and NCC Ltd have billion-dollar projects in the pipeline and are now looking for new markets beyond India’s borders. With their size and experience, many of these players are now setting their sights on Asia.

It stands to reason: Asia’s economic vitality and growth presents a positive contrast to the current economic landscapes in Europe and the United States, making it the region to watch. Asia’s infrastructure market was estimated at US$8 trillion (S$10.18 trillion) in 2010 and is expected to grow even more in the near term. In Southeast Asia alone, the infrastructure industry is estimated to grow to US$700 billion (S$890 billion) by 2015. Singapore sits at the epicentre of this market. As a major financial and corporate hub in Southeast Asia, the country serves as the perfect location from which global companies can operate.

Singapore as a Launch Pad to the Rest of Asia Despite few natural resources, Singapore has taken advantage of its strategic geographical location and excellent connectivity to become one of the leading economic and financial centres in the world. The government continues to encourage a pro-business environment, ensure strong intellectual property protection and devote efforts to build a highly skilled, diverse workforce for businesses locating here. The move has paid off, making the country a prominent centre for business in Asia. Infrastructure companies, in particular, have tapped Singapore’s capabilities as a financial hub and go-between, providing easier access to multilateral organisations such as the World Bank and the Asian Development Bank, which work with the private sector to identify investible projects in Southeast Asia. Singapore also allows for a unique business trust framework that makes it easier for companies to raise funds from private investors. Such a structure allows

“Singapore is a very business-

friendly country with outstanding

standards of governance and ethics,

world-class institutions and business

sophistication with an extremely

well-developed financial market

and efficient legal framework and

labour regulations.”

– Luv Chhabra, Director, Corporate Affairs, Punj Lloyd

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near future is to have all our international business in various countries headquartered in Singapore,” said Luv Chhabra, Director, Corporate Affairs, Punj Lloyd.

Leveraging the Singapore Brand Singapore’s wealth of experience in building and maintaining world-class infrastructure for its people is held in high esteem in the urban infrastructure sector globally. Despite being a small market, Singapore has yielded valuable opportunities for Punj Lloyd and its subsidiaries to participate in marquee projects that have contributed to the corporation’s international reputation. For example, Punj Lloyd has been involved in tank storage projects in the city-state, which is widely regarded as the leading oil trading hub in Asia. The company also had a hand in 75 per cent of Singapore’s Light Rail Transit system, which offers a good testing ground for Asian cities like Mumbai and Jakarta looking to set up their own metropolitan rail systems.

These projects also provide technically challenging endeavours that serve as useful reference for similar but larger projects that Punj Lloyd and its subsidiaries undertake in the region. In this regard, aligning themselves with the Singapore brand is a huge plus. “Punj Lloyd Group has had an excellent experience in Singapore. Singapore is a very business-friendly country with outstanding standards of governance and ethics, world-class institutions and business sophistication with

Sabah Sarawak Pipeline Gas project, Malaysia. A prime example of India’s expansion into Southeast Asia: Punj Lloyd is leading the construction of the massive Sabah-Sarawak Gas Pipeline, which spans over 512 kilometres and is the largest pipeline project in Malaysia

an extremely well-developed financial market and efficient legal framework and labour regulations,” said Chhabra.

By allowing companies to build capabilities and capacity to undertake more complex and ambitious overseas projects, Singapore becomes an indispensable part of their expansion. This partnership can only benefit both the company and the country. �

Asia’s talent generator

With its excellent location, high quality of life and a variety of leadership development programmes to choose from, Singapore is bolstering its standing as a dynamic global city.

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Feature

Humans have never enjoyed more mobility than in the modern era. Scientific innovation is giving rise to sophisticated transportation and globalisation is dissolving borders around the world.

This has sparked increased flows of educated and skilled people between countries as they seek better opportunities. Singapore is uniquely positioned at the crossroads for global talent travelling between the

Speakers and participants of Singapore Business Leaders Programme 2011. (First row, left to right) Professor Kishore Mahbubani, Dean, Lee Kuan Yew School of Public Policy, National University of Singapore; Masayoshi Son, Chairman and CEO, Softbank Corporation; Sunny Verghese, Group Managing Director and CEO, Olam International; Leo Yip, Chairman, EDB; Lee Kuan Yew, former Minister Mentor; Loh Khum Yean, Permanent Secretary, Ministry of Manpower; Kwan Chee Wei, Executive Director, HCLI; (second row, left) Peter Schwartz, Chairman, Global Business Network and Partner, Monitor Group; (second row, right) Liu Yonghao, Board Chairman, New Hope Group; (third row, left) Paul Polman, CEO, Unilever

The Singapore Economic

Development Board conceived

the “Home for Talent” strategy to

further strengthen the country as a

Global-Asia Hub. It transforms the

city-state into a strategic location

that helps companies design and

orchestrate their strategies for

accessing, developing and deploying

talent through Singapore for Asia

and the world.

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Human Capital Leadership Institute (HCLI)Given the diversity and complexity of Asia’s business environment, companies are increasingly keen to invest in and develop strong leaders with a good grasp of the region, who are able to develop and execute effective business strategies. To address the demand, the Ministry of Manpower (MOM), EDB and the Singapore Management University established the HCLI as a national Centre of Excellence for leadership development and talent management. Specifically, HCLI will drive pan-Asian industry-relevant research on human resource issues, develop cutting-edge executive development programmes and foster rich networks between leaders in business, government and academia.

“Singapore is happy to share its experience with others. It can play a role in helping companies develop and execute effective human capital strategies for Asia,” said Goh Chok Tong, Emeritus Senior Minister. “In this respect, we will invest resources to become a hub for a rich human capital ecosystem. Such an ecosystem brings together the government, academics and businesses to adapt best practices to suit opportunities in Asia. With its robust public-private approach, the HCLI is a keystone in this ecosystem.”

The Singapore Business Leaders Programme (SBLP) is the HCLI’s hallmark initiative, aimed at fostering a deeper appreciation among promising business leaders of the nuances of a globalising Asia. The SBLP covers

East and the West. Its central location in Asia Pacific, economic competitiveness and efforts to encourage business and innovation make it a natural hub for global and mid-sized companies aiming to become a part of Asia’s rapid economic development. At the same time, skilled and educated individuals from around the world are converging in Singapore, attracted by the myriad possibilities in the city-state.

Riding on these developments, the Singapore Economic Development Board (EDB) conceived the “Home for Talent” strategy to further strengthen the country as a Global-Asia Hub. It transforms the city-state into a strategic location that helps companies design and orchestrate their strategies for accessing, developing and deploying talent through Singapore for Asia and the world. In addition, Singapore is a growing centre for pan-Asian human capital research, helping companies in the region remain at the forefront of effective people strategies.

Blueprint for GrowthAligned with the “Home for Talent” strategy, the Leadership Initiatives, Networks and Knowledge (LINK) programme aims to establish Singapore as the ideal home for companies to develop and deploy leadership talent in Asia, for Asia and the world. Under this initiative, an ecosystem known as LINK@Nepal Hill is being developed at one-north in Buona Vista, composed of key stakeholders that will generate new leadership and talent development practices. These stakeholders include leading business schools, talent management and leadership development consultancies and corporate universities.

Sunny Verghese of Olam International addressing participants at SBLP 2011

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Feature

core components of the region’s business and strategic landscape, including Asian leadership attributes, challenges faced by global business leaders coming to the region and by Asian companies expanding globally, as well as innovation in Asia.

Singapore Human Capital Summit To facilitate knowledge exchange on talent development issues in Asia, MOM, the Singapore Workforce Development Agency and the HCLI organise the Singapore Human Capital Summit each year. The conference engages business heads and thought leaders in in-depth dialogue on talent challenges that companies in Asia face and presents a valuable opportunity for them to share best practices to maximise human capital.

The Summit also showcases Singapore’s vibrancy and efforts to drive talent initiatives for Asia. “Singapore has grown from a Third World to a First World economy because of our emphasis on leadership and talent. From our experience, we believe that for companies to succeed in the region, they need to develop leaders and talent with the right knowledge to operate in Asia,” said Goh at the opening of the 2011 Summit, themed “People Strategies for Asia – Capitalizing on Asia’s Growth Engines”.

Educational InstitutionsSingapore also plays host to leading educational institutions that offer opportunities for leadership and talent development, through MBA and EMBA programmes, as well as executive education. These include the Chicago Booth Graduate Business School from the United States, the INSEAD Business School

from France and Singapore’s NUS Business School.In undertaking research activities and running customised leadership development programmes for companies, many of these educational institutions seek to provide executives with insights into the opportunities and challenges of operating in Asia – from the unique characteristics that make Asia the most exciting growth region in the world today, to the complexity of operating across markets and economies in the region.

Talent management and leadership consultanciesAlso setting up shop in Singapore are major human resource (HR) consultancies and associations. The RBL Group, a consultancy led by renowned human capital thought leader, Professor Dave Ulrich, launched its first Asia office in August. In September, The Chartered Institute of Personnel and Development, Europe’s largest HR professional body, opened its Asia-Pacific office to conduct research, deliver senior leadership programmes and help businesses in the region deliver uniquely Asian HR strategies.

Reinforcing Singapore’s Position as a Global-Asia HubCompanies have always been on the lookout for new markets and new opportunities. Now, more than ever, companies seeking to expand have to swim with the cross currents: Western companies desiring to gain a foothold in Asia recognise the need to groom in-house management talent with a deep pan-Asian understanding of cultures, markets and business practices. In turn, Asian enterprises wishing to internationalise their operations are seeking competent leaders with global perspectives.

These trends put Singapore squarely in the middle of the confluence, providing the city-state great impetus to develop the necessary talent infrastructure and ecosystem, such as LINK@Nepal Hill, and reinforcing Singapore’s reputation as a global leadership development hub. Developing such an environment involves partnerships with leading global companies to establish their business control towers and talent engines in Singapore, where they orchestrate their pan-Asian business operations and undertake strategic talent decisions. Some recent notable players include:

Procter & Gamble opened its Asia Leadership Development Centre in 2010 that will train over 500 regional leaders annually.

Unilever will set up its corporate university, Four Acres, at LINK@Nepal Hill in 2013. This global centre for leadership development will build a pipeline of global leaders for Unilever to realise the growth opportunities in the developing and emerging markets.

The Singapore Business Leaders

Programme is the HCLI’s hallmark

initiative, aimed at fostering a

deeper appreciation among

promising business leaders of the

nuances of a globalising Asia.

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Yokogawa Electric International, a leading global industrial automation company, established their global leadership training headquarters in June and aims to train at least 100 top leaders over the next three years.

Sumitomo Chemical is launching its corporate institute in Singapore to train managers for the Asia-Pacific region on a broad set of areas, with a focus on corporate HR.

The Place to Be Today, Singapore is a highly attractive location for both business and personal life. The World Economic Forum ranked Singapore as the most competitive in Asia in its 2011 Global Competitiveness Index, and second globally. Accolades such as these reflect the government’s efforts over the years to develop in Singapore a good quality of life, including a safe and secure living environment, strong public education system complemented by top quality private institutions and continuing education and training, as well as connectivity and accessibility to Asia and the world.

With an increasingly globalised world paired with growing competition, companies with the right talent strategies are more likely to succeed in Asia. Singapore’s concerted effort in striving to become a home for business,

“Singapore would not have achieved

its economic success without the

support from our corporate partners.

Their presence in Singapore not

only provides opportunities for our

economy and people but also draws

other companies here.”

– Leo Yip, Chairman, EDB

Delegates of the SBLP 2011 at Capella, Sentosa Singapore

innovation and talent, means companies looking to invest and expand in the region can be confident of finding the right partners and environment they seek in the city-state. �

Deloitte partners EDB for data analytics think tank

12

Report

Deloitte establishes its first Asia-Pacific data analytics think tank in Singapore as part of its strategy to enhance its regional capabilities in the rapidly developing field of data analytics.

Enterprises in every industry face the same dilemma: Extracting meaning from raw information and applying the knowledge to their trade is difficult and messy business, but not to do so could mean missed opportunities and higher risks. This challenge has not been made easier over the years even with developments in technology.

In fact, technological advances are adding to their predicament as the world is creating and sharing knowledge at an unprecedented rate, thanks to the popularity of the Internet, social networking sites and multi-functional gadgets such as smartphones. They empower and place creative control in the hands of

Sealing the partnership for the Deloitte Analytics Institute Asia: (Left to right) Tom Davenport, Senior Advisor to Deloitte Analytics; Philip Yuen, CEO, Deloitte Singapore; Chaly Mah, CEO, Deloitte Asia Pacific; Lee Yi Shyan, Minister of State for Trade & Industry and National Development; Tim Phillipps, Global Managing Director for Analytics, Deloitte

billions of consumers, resulting in a dizzying array of text, images, audio and video being generated around the world every second.

Unravelling Data MysteriesA study by International Data Corporation (IDC) commissioned by EMC, a leading provider of storage hardware solutions, estimated that the world created and replicated over 1.8 billion gigabytes of information in 2011 alone. Amid the avalanche of information, data analytics has been gaining greater attention as a tool for companies to examine raw data and extract useful information, as well as gain useful insights to help them make better business decisions. Gartner, a

“In a global analytics marketplace

anticipated to grow to US$50 billion

(S$63.6 billion) by 2015, we are

very pleased to be partnering EDB

in launching the Deloitte Analytics

Institute Asia in Singapore.”

– Tim Phillipps, Global Leader, Deloitte Analytics

The Ideal EnvironmentDAI Asia represents a key development in Deloitte’s efforts to enhance its competencies in the analytics field by concentrating and cultivating regional expertise and knowledge. Together with its flagship institute in the United States and a third facility to be set up in London, DAI Asia supports the training of world-class analytics professionals and cross-border cooperation to offer unique analytics-based solutions to Deloitte’s clients.

In selecting the Asia-Pacific headquarters for its think tank, Deloitte said it was drawn by EDB’s forward-looking approach to develop Singapore into a hub for advanced analytics. In line with the shift in focus towards more knowledge-based, high-end activities, data analytics is among the new areas identified as being strategically important to Singapore’s continued economic growth. In August, EDB’s International Advisory Council also recommended investing in this niche industry to help global companies in Singapore tap growth in the Asia-Pacific region.

“We considered a number of locations in the Asia-Pacific region to base our Analytics Institute, but we believe that with such strong government support, Singapore offers the best opportunity. The decision to base the Institute’s 15 full-time research and training staff here firmly establishes Singapore as a regional hub for research and innovation in the analytics industry,” said Phillipps. �

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leading information technology research and advisory firm, estimates that the global analytics marketplace is currently worth some US$25 billion (S$31.8 billion).

With over 3,000 employees worldwide dedicated to its analytics arm, professional service and consulting firm Deloitte & Touche (Deloitte) is a frontrunner in the field of data analytics. To develop its Asia-Pacific analytics strategy and capability and better support its clients’ needs, Deloitte joined hands with the Singapore Economic Development Board (EDB) to set up a new data analytics think tank in Singapore. “In a global analytics marketplace anticipated to grow to US$50 billion (S$63.6 billion) by 2015, we are very pleased to be partnering EDB in launching the Deloitte Analytics Institute (DAI) Asia in Singapore,” said Tim Phillipps, Global Leader, Deloitte Analytics.

Unveiled on 25 July, the Institute is dedicated to advanced analytics research and developing cutting-edge methods of applying data analytics to help organisations unlock the significant value of their data. DAI Asia springs from a multi-year, multi-million dollar commitment between EDB and Deloitte, which is investing in excess of US$10 million (S$12.7 million) across Southeast Asia.

Harnessing the Power of Data The strategic advantages of data analytics are widely recognised. ISACA, a nonprofit association of more than 95,000 IT professionals worldwide, pointed out in a white paper that organisations with effective data analytics can make stronger business decisions by learning what works and what does not, what they are doing well and where they need improvement. Through analysis of available information, management can streamline operations, improve performance and profits and better identify and manage risks. It can also pinpoint opportunities for companies to better connect with their target markets and customers, putting them ahead of the competition.

“The virtue of analytics is its ability to provide insights into business forecasting and performance, predicting trends, identifying risks and refocusing management strategy to adapt to changing environments. Most clients know their organisation’s data is full of potential. Stored and siloed throughout their business, it represents a wealth of possibilities,” said Phillipps. Business leaders increasingly overwhelmed by the large volumes of data are now turning to solutions providers like Deloitte. By tapping the combination of its deep industry experience and strong analytics capabilities, Deloitte can translate everyday information into useful, actionable insights for these decision-makers.

Singapore’s chemical industry gets a boost with JAC’s aromatics plant

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Report

The latest addition to Jurong Island bodes well for the Republic’s reputation as a leading chemical hub.

To maintain its status as a leading chemical hub, Singapore is constantly working to stay at the forefront of the industry’s advancement by focusing on the development of competitive feedstock for petrochemicals, advanced materials and specialty chemicals. Helping thechemical industry flourish is Jurong Island, a world-class chemical hub that is home to some of the world’s largest petrochemical corporations.

At present, close to 100 companies have established their presence on the Island, running various facilities. Jurong Aromatics Corporation (JAC), a joint venture between eight shareholders, including Singapore’s EDB

Lim Hng Kiang, Minister of Trade and Industry, leads VIPs and representatives of JAC’s stakeholders in breaking ground for the new aromatics complex on Jurong Island

Investments (EDBI), will be the first tenant of Jurong Rock Cavern, Singapore’s first underground rock cavern for hydrocarbon storage. On 26 August, JAC held a groundbreaking ceremony for the construction of aUS$2.4 billion (S$3 billion) aromatics complex with dedicated port and shipping facilities and a condensate splitter on Jurong Island.

A Global EffortCurrently, JAC finds itself in a unique position. It has already secured an annual US$2.2 billion (S$2.7 billion) worth of offtake contracts for the next seven years. The viability of this project, which was delayed due

Singapore is constantly working

to stay at the forefront of the

industry’s advancement by

focusing on the development

of competitive feedstock for

petrochemicals, advanced materials

and specialty chemicals.

clothing, orthoxylene in PVC and benzene in syntheticrubber, nylon and plastics.

The JAC aromatics plant will be able to address this rising demand and will be one of the largest in the world, once operational in 2014. Its production of aromatics – hydrocarbons that form the base material for a range of consumer items used in cosmetics, medicine, transport and telecommunications – will total 1.5 million tonnes per annum (tpa), comprising 800,000 tpa paraxylene, 200,000 tpa of orthoxylene and 450,000 tpa of benzene.

“The strong demand for aromatics in Asia is a clear example of Asia’s growing needs. Asia alone accounts for more than two-thirds of the global demand for paraxylene,” said Lim Hng Kiang, Minister for Trade & Industry and guest-of-honour at the groundbreaking ceremony.

Jurong Island’s AllureGiven the important role aromatics plays in Asia Pacific, Jurong Island was the perfect choice for JAC’s new aromatics complex, given its strategic location at the crossroads between buyers in the Asian markets and feedstock suppliers in the Middle East and Australia. Inaddition, Jurong Island has a number of other petrochemical facilities, some of which are potential offtakers. This ensures the availability of an experienced and skilled workforce and reliable centralised utilities.

“Jurong Island, a world-class chemical hub, not only had the space for our complex – the island itself is a marvel, being totally made of reclaimed land. The Singapore government understood our business and was attuned to our needs, especially when we were arranging the financing of this project,” said Adib. He added that Singapore’s first-rate infrastructure, excellent connectivity and solid base of industry players and customers attracted the shareholders to locate the plant here.

Given this vote of confidence, JAC will strengthen the city-state’s competitiveness as a major petrochemicals hub in Asia, boosting the export of petrochemical products from Singapore. Dr Beh Swan Gin, Managing Director, EDB, said, “We are very pleased to welcome JAC as a new entrant to Jurong Island. The JAC aromatics complex reinforces Singapore’s status as a leading producer of aromatics products to meet growing demands in Asia. This project also reaffirms Singapore’s attractiveness as a trusted location for regional and international energy and chemicals players to forge new business partnership opportunities.” �

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to the 2008 global financial crisis, is assured as the international buyers of the complex’s aromatics and transportation fuels are its stakeholders.

According to Mehdi Adib, CEO, JAC, “Despite being one of the largest aromatics projects in the world, there are no oil majors among our shareholders. Instead, our shareholders include international feedstock suppliers and petrochemical products offtakers. This gives our business a coat of insurance even before it’s up and running.”

The project is 30 per cent owned by South Korea’s SK International Investment and 25 per cent by China-based Jiangsu Sanfangxiang Group, with Swiss commodities player, Glencore, taking a 10 per cent stake. The remaining is divided between Arovin Ltd (10.5 per cent),Shefford Investments (9.5 per cent), Thai KK Industry (5.1 per cent), EDB Investments (5 per cent) and India’s Essar Group (4.9 per cent).

In April, JAC signed a US$1.56 billion (S$1.98 billion) financing to build the plant, with 11 banks committing to the debt. About US$1.24 billion (S$1.57 billion), or 80 per cent of the debt, will be shouldered by two South Korean government export agencies for a tenure of up to about 15.5 years.

The Rise of AromaticsToday, the demand for aromatics is steadily increasing, particularly in markets like China and India, due to a wide range of end applications. For example, paraxylene is used in the production of polyester for textile and

Coca-Cola opens new concentrate plant in Singapore

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Report

New concentrate manufacturing plant leverages Singapore’s regional connectivity and skilled manpower to support The Coca-Cola Company’s growth in Asia Pacific.

Opening ceremony of Coca-Cola’s concentrate manufacturing plant at Tuas. (Left to right) Fred Yochum, Vice President, Corporate Supply Chain, The Coca-Cola Company; David Adelman, Ambassador of the United States of America to Singapore; Leo Yip, Chairman, EDB; and Irial Finan, President, Bottling Investments and Executive Vice President, The Coca-Cola Company

Photo courtesy of Pacific Refreshments

“Locating the plant in Singapore is

in line with Coca-Cola’s strategy of

being close to our customers. We

can have a short lead time to our

markets, enabling a flexible supply

chain and low carbon footprint.”

– Irial Finan, President, Bottling Investments and Executive Vice President, The Coca-Cola Company

of Asia meets these supply chain management and logistical needs.”

Yip added that Coca-Cola’s decision to locate its knowledge-intensive concentrate plant in Singapore validates the country’s efforts in developing a business-friendly environment with a robust intellectual property protection regime.

Deeper Understanding of Regional MarketsTo cater to the increasingly sophisticated Asian consumers, global companies and brands need to understand the unique needs and preferences of these Asian consumers. This would enable them to effectively develop and manage products and services tailored for the regional markets. Singapore is now building up its consumer insight capabilities to help companies do so.

One key initiative is the newly established Institute on Asian Consumer Insight. The S$77 million (US$64.2 million) institute was set up to conduct research and education programmes to help firms innovate brands, products and services that meet the needs and aspirations of consumers across the region.

“We are committed to strengthening our value proposition and capabilities… as a centre for brand management and innovation,” said Yip. “I am confident that Coca-Cola will continue to find value in our business propositions and grow in partnership with Singapore.” �

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The Coca-Cola Company (Coca-Cola) officially opened a S$72 million (US$60 million) concentrate manufacturing plant in Singapore on 20 September. The concentrate plant will support the beverage giant’s continued growth in Asia Pacific and help achieve the company’s goal of doubling daily worldwide servings of its beverages in the next decade.

One of the largest in Asia, the plant has the capacity to produce 24 million kilograms of concentrate per annum – equivalent to over 18 billion 330ml cans of Coca-Cola – and will supply concentrates to markets across Asia Pacific. These concentrates are used to manufacture beverages in Coca-Cola’s portfolio, including major brands such as Coca-Cola, Fanta, Sprite, Powerade and Minute Maid.

“This (the concentrate plant) is an investment for growth as Asia is one of our fastest growing markets and across the region, we see high demand for our wide range of beverages,” said Irial Finan, President, Bottling Investments and Executive Vice President, The Coca-Cola Company, at the plant’s opening ceremony.

He added that Singapore’s skilled manpower, world-class infrastructure and global connectivity make it an attractive location for the concentrate plant. “Locating the plant in Singapore is in line with Coca-Cola’s strategy of being close to our customers. We can have a short lead time to our markets, enabling a flexible supply chain and low carbon footprint,” said Finan. The world’s largest maker of non-alcoholic drinks has a long-standing presence in Singapore – its local operations span 75 years and include a bottling plant and a regional marketing office. The new concentrate plant is Coca-Cola’s first in Singapore and broadens its activity base in the city-state to include manufacturing.

Location, Location, Location Singapore’s strategic location between East and West provides consumer packaged goods companies with effective market access to Asia. Closer proximity to regional markets enables companies to better capture the tremendous opportunities fuelled by the growth in Asia’s middle-class consumers and their spending.

“Companies such as Coca-Cola looking to grow in Asia need a location that puts them closer to their customers. This will enable a more flexible supply chain and shorter lead time to markets,” said Leo Yip, Chairman, Singapore Economic Development Board (EDB). “Singapore as a globally connected logistics hub located in the heart

Living with green energy

18

Report

Singapore partners Panasonic for the first total energy solutions public housing test-bed in Asia.

The global population continues to grow at an unprecedented rate and city planners worldwide continue their search for innovative urban solutions to maximise resources and improve the quality of life in cities. Companies in sync with such global trends like Panasonic are leading the pack in developing energy management solutions that are sustainable and, more importantly, applicable for entire buildings, districts and even cities. In these transformative times, Singapore is positioning itself as a “living lab” for innovative and sustainable urban development and smart city projects.

Kicking off the Panasonic Total Energy Solutions Test-Bed Project in Singapore are (left to right) Haruyuki Ishio, Director, Corporate Division for Promoting Energy Solution Business, Panasonic Corporation; Chee Hong Tat, Chief Executive, EMA; Tan Choon Shian, Deputy Managing Director, EDB; Fumio Ohtsubo, President, Panasonic Corporation; Larry Cheng, Deputy Managing Director, Building Research Institute, HDB; Yorihisa Shiokawa, Managing Director, Panasonic Asia Pacific

In partnership with Singapore’s Housing & Development Board (HDB), Energy Market Authority (EMA) and Economic Development Board (EDB), Panasonic is conducting a first-of-its-kind test-bed of total energy solutions for public housing in Singapore. The project will see Panasonic integrate its energy creation, storage and saving solutions at an existing residential building in Singapore to realise a more energy efficient future. The test-bed project will be conducted from this year until 2013 in Punggol Eco Town, one of the key “living labs” for urban solutions in the Republic.

“Singapore, with its excellent

infrastructure and talent base,

is an ideal ‘living lab’ to test-bed

our energy solutions. I expect

this collaboration to be a pioneer

endeavour towards a greener

lifestyle in Singapore and the region

with our technology.”

– Fumio Ohtsubo, President, Panasonic Corporation

potentially produce a building with zero carbon emissions from its common facilities. In addition, Panasonic will install its Home Energy Management System (HEMS) in participating units, featuring in-home displays for the residents to monitor their electricity, water and gas usage. This allows households to better manage their utilities consumption and increase energy efficiency.

The project also presents a great opportunity for EMA to test-run its Intelligent Energy System (IES) pilot in collaboration with Panasonic. Announced in November 2009, the IES pilot will test the feasibility of using smart meters and smart grid technologies for households and businesses in Singapore to enhance the efficiency and resilience of Singapore’s power system.

Building to LastAs a small country with limited resources, Singapore understands the need for optimising the use of resources to ensure sustainability in the long run. It is therefore crucial to implement effective energy management solutions. Due to Singapore’s location in the tropics, as much as 30 per cent of the electricity it generates is consumed by air conditioners. By combining energy-efficient air conditioners with demand response technologies in all households, Panasonic executives are optimistic that Singapore could save as much as 10 per cent of its total energy usage, equivalent to the capacity of a new power plant.

These initiatives are in line with Singapore’s vision of the future. For example, HDB has been driving sustainable development efforts in its towns and estates for years. HDB towns are planned and designed to embrace the local climate, using passive design strategies to achieve effective energy, water and waste management. This test-bed project therefore presents the ideal opportunity for Panasonic and HDB to realise their mutual goals collaboratively.

“This project attests to the ease of private-public partnerships in Singapore and will help Panasonic accelerate the commercialisation of its new energy solutions business, before scaling up for global markets,” said Tan Choon Shian, Deputy Managing Director, EDB.

As a city level “living lab”, Singapore has laid the foundation for greater and more collaborations with companies on innovative urban solutions projects. Looking ahead, with increasing adoption of innovative energy solutions in more homes, buildings, stores, offices and public facilities, Singapore is now one step closer to becoming a city that truly embraces sustainable development. �

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Ideal Platform for InnovationsNew products and solutions often require lead demand and credible reference projects before there is widespread adoption. As one of the most highly urbanised cities in the world, Singapore’s government has shown an appetite in recent years for innovative urban solutions. With more than 80 per cent of the population living in HDB housing, Singapore is the perfect partner for companies like Panasonic, who are keen to test and demonstrate their housing energy solutions before scaling up these solutions for application in other markets around the world.

Moreover, Singapore’s workforce and business culture offer a conducive environment for companies to try out cutting-edge solutions. Fumio Ohtsubo, President, Panasonic Corporation, said, “Singapore, with its excellent infrastructure and talent base, is an ideal ‘living lab’ to test-bed our energy solutions. I expect this collaboration to be a pioneer endeavour towards a greener lifestyle in Singapore and the region with our technology.”

Designing a Smart City Panasonic has long been known for its pioneering efforts to spread full-featured home energy management solutions to homes around the world. Now, Panasonic is applying its expertise to Singapore, starting with a block of 100 households in the Punggol 21 housing estate.

Photovoltaic (PV) solar panels on the roof will supply electricity for lifts, water pumps and lighting in the common areas, while lithium-ion batteries will store excess energy to serve as night-time power supply and a backup electricity generator. This system could

Moulding into a regional hub

20

Report

Singapore’s dynamic and strategic business environment has contributed to Borouge’s status as a global powerhouse for innovative plastics solutions.

Petrochemicals play an important role in the modern world as they are essential for manufacturing diverse products such as synthetic fibres and rubbers, plastics, resins and even explosives. Fuelled by rapid urbanisation and economic development in Asia, the petrochemical industry has become one of the world’s fastest growing industries. In Singapore, the energy and chemical industry accounts for S$60 billion (US$47.1 billion), or one-third of the country’s manufacturing output, and multinational corporations (MNCs) like Shell and ExxonMobil are major contributors.

For its first venture into Asia, Borouge, a leader in producing innovative, value-creating plastics solutions,

The new Borouge Innovation Centre will support the Singapore headquarters in marketing and sales in Asia, allowing the company to react faster to customers’ needs in a rapidly developing region

was attracted by Singapore’s potential and set up its global headquarters here in 2007. The Singapore office is responsible for the company’s sales and marketing functions, as well as customer service, finance and IT services in the region. It complements Borouge’s Abu Dhabi-based production arm, and is supported by sales offices in cities such as Abu Dhabi, Auckland, Beijing, Beirut, Guangzhou, Hong Kong, Melbourne, Mumbai and Shanghai.

A Proven Track Record Borouge was established in 1998 as a joint venture between Abu Dhabi National Oil Company, a major oil and gas company, and Borealis, an Austrian-based

Awaiting Pic

By tapping Singapore’s connectivity

to key markets, Borouge has been

able to efficiently coordinate with

its 10 sales offices around Asia

through its global headquarters,

thus creating a comprehensive

network to facilitate its sales and

marketing functions.

World-class infrastructure Singapore’s comprehensive port network and road systems have allowed Borouge to reach out to more customers and markets, thereby gaining a strong foothold in Asia. The city-state’s logistics infrastructure has also been a boon to Borouge’s growth. In 2010, Borouge tripled its annual production capacity in Abu Dhabi to two million tonnes. Singapore was able to consolidate Borouge’s logistical activities within the country through CWT, a privately owned enterprise that provides integrated logistical and regional distribution services for MNCs in Asia Pacific. The CWT Commodity Hub, which opened in May 2010, now handles up to 330,000 tonnes of value-added polyolefins per year for Borouge, thus reinforcing Borouge’s growing scope of business.

Expanding to New Horizons Since Borouge established its base in Singapore, both the company and the country have benefited tremendously from the partnership. Relocating the position of Borouge’s Marketing & Sales CEO to the Singapore office helped build a strong sales and marketing presence from the top down in the region. By tapping Singapore’s connectivity to key markets, Borouge has been able to efficiently coordinate with its 10 sales offices around Asia through its global headquarters, thus creating a comprehensive network to facilitate its sales and marketing functions.

Borouge’s Innovation Centre is due for completion at the end of 2011 and is expected to increase the company’s plastics production capacity to four million tonnes by 2014. Singapore’s logistical superiority and connectivity will play a key role in consolidating Borouge’s future productions and the city-state will be the ideal nerve centre for the company’s regional sales operations.

Borouge’s presence in Singapore underscores the significance of the country as an effective regional petrochemicals hub. It strengthens the impression of Singapore as a viable start-up location for petrochemical companies that are seeking to establish their presence in Asia. As Borouge continues to expand its operations, Singapore’s reputation as a logistical hub will be further solidified. With all the opportunities to collaborate in the future, Borouge’s partnership with Singapore will cement both parties as major players in the global petrochemical industry. �

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leading provider of chemical and plastics solutions. In recent years, Asia has become a long-term market for the majority of Borouge’s value-added polyolefins – organic thermoplastic polymers used in consumer goods, structural plastics, food packaging and industrial products.

Borouge’s key considerations for its headquarters included regional connectivity to quickly build the company’s sales and marketing functions and good infrastructure to support the office’s multiple functions. Singapore stood out as the company’s top choice with its positive track record as a strategic location for MNCs servicing the Asian and Indian sub-continents. Borouge says Singapore’s appeal lies in several factors, including:

A business-friendly environment To forge a conducive environment for businesses to thrive, Singapore has maintained its government’s transparency while creating a strong legal system and effective pro-business schemes. The stable political climate and efficient judicial system helped Borouge take root and conduct its business activities with peace of mind.

A competent workforce Borouge has been able to recruit many capable employees from Singapore’s pool of highly educated and efficient workforce in the petrochemical industry. These local talents possess the right skill sets and experience to fill key positions across both commercial and administrative functions, which have been instrumental in helping Borouge grow its business.

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Future Ready Today_

This special series of articles discusses what tomorrow’s challenges mean for today’s businesses. In this issue, we look at how Asia is flourishing as the new centre for the arts amid rapid economic growth and Singapore’s efforts to position itself as a hub for the visual arts industry.

A pro-business, forward-looking approach has not only put Singapore on business maps everywhere, it has nurtured a profound understanding of what global companies need in today’s world.

With the business environment changing at an unprecedented pace, Future Ready Today_ articles explore the possible avenues that businesses in different industries can leverage on and are supplemented with real-world examples of how some of the world’s leading companies have made the most out of their partnerships with Singapore.

Special

The Singapore Art Museum is home to one of the largest collections of modern and contemporary Southeast Asian artwork

In the fourth of a series of Future Ready Today_ articles, we examine how the art world’s centre of gravity is moving eastwards as Asia’s metropolises rapidly develop into hubs for the visual arts industry, thanks to the region’s sustained economic boom.

For more interesting Future Ready Today_ articles, visit www.singaporebusiness.com

Additionally, Singapore’s success as an arts hub is rooted in the favourable conditions it offers that attract Asian HNWIs who are interested in acquiring art for enjoyment or investment. These include a safe and stable environment with high standards of living, required infrastructure, facilities and transport links and supporting business framework.

Flourishing in PartnershipBesides patronage by well-heeled consumers, an entire ecosystem of different businesses has to develop for visual arts to thrive. Artists and prospective art buyers require a physical space to display, view and purchase art pieces. Art storage and transportation represents a logistical challenge, while a favourable tax regime is important for artists and purchasers. The emergence of art critics, consultants and technical experts also help support and sustain the industry’s organic growth. The Visual Arts Ecosystem: •Galleriesandmuseumsofferexhibitionspaceand

outreach programmes to educate the public•Artfairsactasmarketplacesforallpartiesto

make deals•Teachinginstitutionsgroomfuturetalents

and administrators•Auctionhousesvalueartpieces,setbenchmarksand

aid in the trading of art•Specialisedlogisticsmakessureartpiecesareproperly

transported door to door•Specialisedstoragefacilitiesensurethatvaluableartis

kept secure in controlled environments

Establishing a complete set of system requirements catering to the needs of the various industry players creates ease of entry into the growing market for them to leverage the opportunities in Asia. These different components not only make the business side of visual arts seamless, but also perpetuate appreciation and demand for art locally, while attracting overseas art enthusiasts.

The Singapore DifferenceSingapore’s museums have made a name for themselves in the region. The Singapore Art Museum, for example, has amassed one of the world’s largest public collections of modern and contemporary Southeast Asian artwork since it opened in 1996. Meanwhile, gallery owners in Singapore having to travel frequently to discover and nurture deserving artists and help promote their works are benefiting from the city-state’s sound infrastructure and global connectivity.

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Mention “art” and the cities that spring to mind as popular centres for the arts and artists are likely London, New York and Paris. There are myriad factors that contribute to a flourishing arts scene, but the bottom line is that it requires the support of affluent consumers.

Asia’s increasing prosperity mirrors the rise of Asian interest in art. Having weathered the global financial crisis better than any other region, Asia is experiencing unprecedented economic growth. According to The Business Times, there are now as many high net worth individuals (HNWI) – defined as having US$1 million (S$1.3 million) or more in assets – in Asia as in Europe. By 2013, the number of Asian HNWIs will exceed even the US. Unlike their Western counterparts, Asia’s HNWIs tend to spend their wealth in the region. Consequently, the level of disposable income in Asia is higher than the global average: In 2008 and 2009, cash holdings of Asian HNWIs as a percentage of total wealth was 29 per cent and 22 per cent respectively, compared to the global average of 17 per cent.

FactsontheGroundAsia’s greater economic clout has led to a huge potential for consumption. This is spurring the influx of different players in the arts scene into Asia, providing a new point of growth for the industry. With bread-and-butter issues out of the way and extra cash in their pockets, Asian consumers are showing greater appreciation for luxury goods and pursuits such as gourmet food, fine wine and fashion. A growing group of sophisticated, globalised Asians are also seeking out opportunities to invest in items perceived to have tangible, long-term value.

Simultaneously, global appreciation of Asian arts is quickly developing and players in the visual arts scene are gaining strength, as evidenced by the rapid emergence of Asian artists and high turnover for art auction sales. Nearly half of the world’s top 500 contemporary artists are from Asia, as are half of the top 10 countries (in terms of turnover) that conduct contemporary art auctions. Leading the way are China and Singapore, ranked third and fifth respectively.

While China is focusing on Chinese art, Singapore has adopted a more cosmopolitan outlook and its strength lies in regional art, especially from Southeast Asia. This stems from its geographical location and history as the hub for Asia Pacific’s marine trade. “Singapore is strategically located between the growing art markets of China and East Asia, and India and the Middle East,” noted Andy Foster, International Managing Director of auction house Christie’s.

Asia’s greater economic clout has led

to a huge potential for consumption.

This is spurring the influx of different

players in the arts scene into Asia,

providing a new point of growth for

the industry.

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However, galleries in Singapore face a further challenge with limited exhibition space available. To counter this problem,SingaporeaimstoopentheNationalArtGalleryin 2014, focusing on Southeast Asian art from the 19th century to the present. When completed, it will offer more exhibitionspacethantheNationalGalleryinLondon.

Such a proactive approach to support the development of the arts spurred Lorenzo Rudolf, former director of Art Basel, to select Singapore as the location of his art fair for Asia. “Many cities want to be world-class but they only pay lip service. This city is different,” he said.

In January 2011, the inaugural Art Stage Singapore was held at Marina Bay Sands with Rudolf at the helm as the fair’s director and CEO. More than 120 contemporary and modern art galleries from 26 countries participated, offering a complementary blend of Asia-Pacific art and creations from Western art galleries. Notable figures from the art world, including American photo artist David LaChapelle and contemporary artist Takashi Murakami from Japan, graced the event, which welcomed over 32,000 visitors and generated strong sales. “Asia is ready for an international event like Art Stage Singapore,” said Rudolf.

Apart from paving the way for prestigious arts events to be held in Singapore, the government is also supporting the development of local talents and infrastructure. In his budget speech in February, Finance Minister Tharman Shanmugaratnam announced that S$365 million (US$286.8 million) will be set aside annually for

arts practitioners up to 2015, marking an increase of over 50 per cent for such funding. In a separate investment, the government is also turning the laidback enclave of GillmanBarracksintoanartsandcreativehub.

Meanwhile, government support has been instrumental in the development of The Singapore Freeport (Freeport), a massive state-of-the-art facility for storing art and other collectibles located near Changi Airport. The first of its kind in Asia, Freeport is an example of the ability of Singapore’s logistics sector. The size of six football fields, it contains secure vaults, private viewing rooms and exhibition space, all with temperature and humidity controls. “Singapore is a stable location, and the government is committed to promoting and supporting the arts. These factors are a huge draw for collectors,” said Alain Vandenborre, President and Co-founder, Freeport. Collectors will also be allowed to exhibit works stored in Freeport in Singapore museums without having to pay taxes or submit custom forms.

New BloodAnother important component in the visual arts ecosystem is the education institutions that continuously produce graduates to fill positions in the industry. Singapore offers a comprehensive array of institutions such as Nanyang Academy of Fine Arts and LASALLE College of the Arts that provide myriad courses for young people interested in the arts, from pre-tertiary to diploma and degree levels.

The training and exposure these arts graduates receive mean they can influence the local community to be more appreciative of art, regardless of their eventual profession. An Australian study also demonstrated the positive impact of art education on areas such as economic growth, communication skills and knowledge acquisition.

As the centre of gravity in the world of the arts shifts inexorably towards Asia, Singapore is well-positioned to become a regional hub for the industry. “A forward-thinking and thriving arts community, aided by the ease of movement, all go towards encouraging more artists, auction houses and collectors to flock to Singapore,” said Quek Chin Yeow, Deputy Chairman for Asia, Sotheby’s. Confirming that Singapore is on the right path, Fumio Nanjo, Artistic Director of Singapore Biennale 2006 and 2008, added, “Singapore is increasing depth not only by building the arts, but also the galleries, museums, colleges and businesses that support the industry.” �

To comment and share your thoughts on this issue, visit www.singaporebusiness.com

Special

The Singapore Economic Development Board (EDB) is the lead government agency for planning and executing strategies to enhance Singapore’s position as a global business centre. We dream, design and deliver solutions that create value for investors and companies in Singapore. Our mission is to create for Singapore, sustainable economic growth with vibrant business and good job opportunities.

For more information on how EDB can help your business, please visit www.sedb.com/news

Publication TeamEditors:Ho Yong Min (yong_min_ho@edb.gov.sg)Mok Cher Soon (chersoon@edb.gov.sg) Editorial Contributor: Joyce Ong (joyce@paperclip.com.sg) Art Director: Vincent Tanara (vincent@paperclip.com.sg)Project Manager: Khim Yap (khim@paperclip.com.sg)

Publishing Consultant: Paperclip Communications Pte Ltd

Please email your comments/feedback to: yong_min_ho@edb.gov.sgThis material is circulated by the Singapore Economic Development Board, 55 East 59th Street, New York, NY 10022, which is registered under the Foreign Agents Registration Acts as an agent of the Government of the Republic of Singapore. This material is filed with the Department of Justice where the required registration statement is available for public inspection. Registration does not indicate approval of the contents of this material by the United States Government.

© Singapore Economic Development Board.

All information correct at time of printing

About the Singapore Economic Development Board

What is Singapore: Future Ready?

Singapore: Future Ready articulates Singapore’s aspirations to be a partner for global businesses as they develop their ideas for tomorrow’s solutions. We do so by recognising the value of long term relationships, adopting a forward-looking approach, demonstrating ingenuity and taking on challenges with a can-do spirit.

This is the final printed issue for Singapore Investment News. Look forward to a revamped online publication, Singapore Business News_, which will be released monthly from January 2012. Stay updated with Future Ready Singapore content, economic news and industry highlights.

Sign up for our e-newsletter at http://www.edb.gov.sg > “Quick Links” > “Subscribe for e-newsletter” or http://www.edb.gov.sg/edb/sg/en_uk/index/registration.html, where you will be able to download the online publication monthly.

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