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Contents
3 Message from the Minister for Foreign Affairs and Minister for Law
50 The Current Business Climate in Singapore 50 Introduction
5 Message from the U.S. Ambassador to Singapore
50 Singapore’s Advantages as a Business Destination
7 Message from the Chairman of AmCham Board of Governors
51 Government Support for Businesses
8 Executive Summary 11 Preface 12 Looking Back at American Business in Singapore 12 The Early Years
52 Perceptions of the U.S. Contribution to Singapore 53 Current Operational Challenges in Singapore 54 Recruitment from the Local Talent Pool 56 Feedback on Key Domestic and Regional Issues
14 Growing Business Partnerships
58 Interviews: 58 Lay Lim Teo, Accenture
16 Interviews: 16 Gan Seow Kee, ExxonMobil
60 Dave Hoffmann, McDonald’s
18 Michael Zink, Citi 20 Mark Nelson, Chevron 22 Iain McLaughlin, Coca-Cola 24 Stefan Jacoby, General Motors 26 The American Business Community Today 26 Introduction 26 Profile of the American Business Community 29 Workforce Profile 32 Respondents' Role 33 Community Involvement
62 Ooi Huey Tyng, Visa 64 Tim Cofer, Mondelēz International 66 Laurence Chin, United Airlines 68 Looking Ahead to 2025, Continuing to Strengthen the U.S.-Singapore Business Relationship 68 Introduction 69 Management Outlook 72 Challenges in the Next Decade 73 Productivity Focus 74 Supporting Local Talent 75 Concluding Remarks
36 Interviews: 36 Bala Nadarajah, United Technologies Corporation
76 Interviews: 76 Sam Kim, Procter & Gamble
38 Janet Ang, IBM
78 Jessica Tan, Microsoft
40 Jeffrey Hardee, Caterpillar
80 Jane Lau, Starbucks
42 Ng Tian Chong, Hewlett-Packard
82 George Tanasijevich, Marina Bay Sands
44 Hsing Ho, DuPont
84 Brian Rogove, Cognita
46 SME Panel: Killick Datta, International Brand Partners; Alison Eyring, Organisation Solutions; Chris Milliken, PengWine; Jeff Weisel, Celadon Health Ventures
86 Acknowledgements
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Message from the Minister for Foreign Affairs and Minister for Law Singapore celebrates its 50th anniversary of independence this year. American companies have shared in our journey, contributing to Singapore’s economic development and transformation into the modern, prosperous, and liveable city we see today. The strong business links between Singapore and the United States reflect a long-standing relationship built on mutual trust, and a commitment to investing in each other’s futures. Our shared belief in the value of strong rule of law, innovation, and government policies that facilitate and encourage business is embodied in the u.s.–Singapore Free Trade Agreement (ussfta), which holds the special place of being the United States’ first trade agreement with an Asian country. A decade on, the ussfta remains an anchor and pathfinder for the United States’ strategic engagement of the region. The successful conclusion of the Trans-Pacific Partnership will further entrench this engagement, which has underpinned regional stability, prosperity, and progress over the last 70 years. The economic successes and attractiveness of Singapore as both an investor and investment destination are important factors why other countries, including the United States, are keen to engage Singapore. Small as Singapore is as a country, it was the 16th largest trading nation globally last year, with a total trade of s$982.7 billion. Singapore was the United States’ 3rd largest Asian investor in 2013, with an investment stock of us$20 billion. Singapore companies have created close to 40,000 jobs in the u.s. U.s. exports of goods and services to Singapore also helped to create more than 200,000 jobs in the u.s., which is equivalent to 6.5% of the jobs created through trade with the Asia-Pacific region. This makes Singapore the 13th largest job creator in the u.s. through overseas trade. At the same time, American investment into Singapore continues to flow in at record levels, with the United States maintaining its prime position as Singapore’s largest foreign direct investor. Singapore offers a base for American companies to reach out to the wider Southeast Asian region with a market of 640 million people. With the establishment of the asean Economic Community by end-2015, asean will be integrated and transformed into a single region market, and Singapore is well-positioned to become the key hub in the region – the “New York of asean.” There are presently over 3,600 American companies in Singapore, many of which have grown with us over the years, tapping on Singapore’s strategic location, connectivity, networks, and reliability. Others are taking their first steps in building what I am confident will be an enduring and mutually beneficial relationship. I look forward to seeing these partnerships grow, as we work together to pursue opportunities in asean and the broader Asian market. As we commemorate our strategic partnership with the United States over Singapore’s first 50 years of independence, we look forward to elevating our cooperation to even greater heights in the years to come. I commend the American Chamber of Commerce (AmCham) for its excellent work in serving the United States business community in Singapore. I also thank AmChan for the important role it has played in nurturing the close ties between our business communities.
K. Shanmugam
MINISTER FOR FOREIGN AFFAIRS AND MINISTER FOR LAW, SINGAPORE
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Message from the U.S. Ambassador to Singapore Welcome to the American Chamber of Commerce in Singapore’s special report commemorating the 50th anniversary of Singapore's independence. The United States—our people, our businesses, and our government— are proud to be part of Singapore's remarkable journey from a young city-state to the prosperous nation we witness today. As we look to the next 50 years, I firmly believe u.s. companies will continue to be strong and active partners through increased investment, employment opportunities, and technological collaboration. This special anniversary report highlights the importance Singapore holds for the u.s. private sector in the Asia Pacific region. The report's focus on education and the workforce illuminates an important area where we can expand our cooperation. Our robust commercial relationship will deepen as we uncover new ways to leverage knowledge for our mutual benefit. Shared values and diversity are part of the dna of American businesses and businesses with significant linkages to the United States. These qualities are a source of strength that is brilliantly captured by the ceo interviews featured in the report. I join the American Chamber of Commerce in saluting Singapore and wish Singapore another 50 years of success.
Kirk W. Wagar
AMBASSADOR OF THE UNITED STATES OF AMERICA, SINGAPORE
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Message from the Chairman of AmCham Board of Governors Happy 50th birthday Singapore! The American Chamber of Commerce proudly salutes Singapore's anniversary with our commemorative publication, Reflections: Perspectives from the American Business Community. Singapore has offered a welcoming home and a steadfast partnership with business that is unrivaled in the world. American business has contributed in large and important ways to Singaporeâ&#x20AC;&#x2122;s economic development and prosperity since long before independence. Singaporeâ&#x20AC;&#x2122;s economy is in the midst of significant transition that brings policy and operational challenges to governments and businesses alike. In its sixth decade, Singapore is setting the path for the next half century. This anniversary report contributes a forward-looking analysis of where Singapore and the United States can work together in the years ahead to meet the challenges to the greatest mutual advantage. As revealed in our special sg50 member survey and interviews with corporate leaders, we in the American business community anticipate continued expansion of our investments and workforces in Singapore. Our common interest in future growth and prosperity makes supporting a futureready Singapore workforce a priority for the government and people of Singapore and AmCham members alike. We look forward to ongoing collaboration in this important endeavor. May I offer special thanks to everyone who contributed to this reportâ&#x20AC;&#x201D;the ceos who were interviewed, the AmCham members who participated in the special sg50 survey, the companies who searched their archives for photographs and memorabilia that visually capture our history, and the sponsors who generously made the project possible. I would also like to commend and thank the AmCham executive staff and Control Risks for their outstanding work producing Reflections. I invite you to start turning the pages and hope that you will find Reflections both informative and thought-provoking.
Dr. James R. Andrade CHAIRMAN AMCHAM BOARD OF GOVERNORS
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Executive Summary Reflections: Perspectives from the American Business Community highlights u.s. companies’ optimism about prospects in Singapore. Survey respondents and interviewees are grateful for having had the opportunity to grow together with Singapore over the past five decades and anticipate further successes in the future. American firms have been present in Singapore for more than a century. The growth of the size and scope of their operations has mirrored the upward trajectory of the Singapore economy. With the Singapore government’s active efforts to attract foreign investment, the American business presence in Singapore grew rapidly after 1965, and its evolution mirrored Singapore’s own journey from a labor-intensive manufacturing center to a regional hub hosting capital- and knowledgeintensive, high-technology operations. American companies have invested in their workforces, providing education, upskilling, and leadership development. They have contributed to the communities in which they live and work, including through individual corporate social responsibility programs and through participation in the u.s. Embassy-AmCham Singapore hosted Corporate Community Day, the largest single-day volunteer event in the nation. Along the way, American companies have received a wide range of Singapore awards for excellence, including the nstb Technology Award, sme Asia Award, Distinguished Public Service Star, Nanyang Entrepreneur Award, Best hr Leader Award, and sia Architectural Design Award. Our members indicate that Singapore’s greatest advantages are the ease of conducting business, stable political environment, sound infrastructure, and favorable tax rates. These, coupled with its strategic location in the center of the fast-growing asean region, make Singapore an attractive investment destination. As the Singapore government continues to fine-tune its economic policies to make its business environment more hospitable to businesses from all sectors, many respondents report having received help from the government through various schemes. The top three factors business leaders cite as potential challenges to continued growth in the next decade are the cost of doing business, availability of local talent to fill leadership positions, and rising competition from other economies in the region. The profile of American companies in Singapore—regional headquarters, sophisticated intellectual property-intensive operations, research and development centers, high-tech innovators—means that their demand for globally
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adept, professionally accomplished, and highly skilled employees is high and likely to become still higher. While the majority of companies indicate that Singaporeans head major business units in their Singapore operations, their confidence that they can recruit enough qualified Singaporeans in the future declines as the positions increase in seniority and/or skill level. Our members encourage the development of a global outlook and strong leadership skills among their Singaporean employees. They hope the government will continue to prioritize investing in local talent while also recognizing the importance of attracting foreign talent to support growth. Regionally, companies hope the government will continue to promote regulatory harmonization across asean and multilateral trade liberalization. Looking ahead, six out of ten respondents expect that their companies will increase their investment in Singapore. Two-thirds anticipate that their workforce in Singapore will expand over the next decade. They foresee hiring more local talent versus foreign workers: almost 90% of companies predict that expatriates will be a lower or similar percentage of their workforce. The demand for skilled technical labor will likely remain strong, as almost all respondents indicate that the percentage of such employees will likely rise or stay the same. The Singapore government has made a decisive shift towards productivity-driven growth in the past five years, and firms have likewise deemed it a priority; 90% of surveyed executives report that productivity measures will likely be of significant importance to their firms in the next five years. They plan to support the Singapore governmentâ&#x20AC;&#x2122;s productivity objectives by improving the skills of their employees, refining management practices, and developing new and innovative processes. The United States is the largest source of foreign direct investment in Singapore and AmCham members employ tens of thousands of Singaporeans. They have enjoyed growing with the country over the last 50 years and continue to expand their businesses today. They see a bright future for Singapore and they welcome further cooperation with the government and the local community to take full advantage of the opportunities that lie ahead. With warm congratulations to Singapore upon the occasion of its 50th anniversary, we offer Reflections as helping set the stage for the next half century of collaboration between Singapore and the American business community.
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SOAR
TAKE FLIGHT Small moments at Singapore American School put Alex Fortmann in front of the big screen. Thanks to inspiring middle school film teacher David Hevey, Fortmann picked up a camera for the first time at age 13 and discovered a passion for filmmaking. Eventually, he used his skills to write the script, create the score, and shoot the footage for “Flight.” The short film won film-festival awards and, along with his 4.15 GPA, served as his ticket to New York University’s Tisch School of the Arts. Fortmann has always been one to reach for the stars, but Singapore American School helped him take flight.
Resources
Beginning as early as sixth grade, students formally learn the art of story telling, along with technical skills such as camera operation, video editing, and audio mixing in well equipped classrooms and studios.
Film Society
This student run high school club is an opportunity for students to discuss films, collaborate on projects, and connect with SAS alumni who continue to make strides in the industry.
APPLY NOW FOR 2015-16 AT WWW.SAS.EDU.SG/ADMISSIONS Singapore American School CPE Registration Number: 196400340R Registration Period: 22 June 2011 to 21 June 2017 Accredited by the Western Association of Schools and Colleges
SINGAPORE AMERICAN SCHOOL
Preface As Singapore celebrates 50 years of independence in 2015, the American Chamber of Commerce in Singapore examines American business in Singapore through a survey of our members and a series of interviews with prominent business leaders. Reflections: Perspectives from the American Business Community describes AmCham Singapore members’ major contributions to Singapore, capturing how American companies have helped shape the development of Singapore thus far and providing insights into what they see on the horizon. The contributions made by American companies in the past provide a pathway to understanding the outlook and challenges for the future. After prospering for 50 years, Singapore’s economy is undergoing broad transformation and is on course for greater technological innovation. The report offers a forward-looking analysis of where Singapore and the United States can work together to meet upcoming challenges to the greatest mutual advantage for years to come. The report is based on the findings of a survey of 327 small, medium, and large companies that are AmCham Singapore members. The report is enriched by interviews with senior business leaders from member companies, some that have been in Singapore for over 50 years and others that are more recent arrivals. These interviews complement the survey findings and provide a snapshot of the many faces of American business in Singapore today. Presented in order of their companies' arrivals here, the interviews track our growth. The report consists of several sections dedicated to different aspects of Singapore’s business climate and respondent companies’ roles here. It opens with historical information about the growing American business presence in Singapore that provides context for present-day U.S. investment in the region. It then gives an overview of the contemporary business climate in Singapore, particularly how it shapes investment opportunities for American companies. The next section examines the business outlook for American companies in Singapore and includes companies’ reflections on how to strengthen the U.S.-Singapore business partnership further in the years ahead. Scattered throughout the report are the interviews with senior business leaders and illustrative photographs and memorabilia. This report was prepared by the American Chamber of Commerce in Singapore with generous analytical and production support from Control Risks. We would like to thank Control Risks for its invaluable contributions to the publication. Sincerely,
Judith Fergin
EXECUTIVE DIRECTOR THE AMERICAN CHAMBER OF COMMERCE IN SINGAPORE
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Looking Back at American Business in Singapore The Early Years A port city situated at the heart of a well-defined maritime trade route, Singapore has long been a geographically strategic location for businesses to establish operations in Southeast Asia. In 1837, the United States recognized the importance of the growing port of Singapore and named Joseph Balestier as its first Consul to Singapore. By 1917, enough Americans resided here that a small group came together to provide support for fellow countrymen in Singapore. This informal network grew into the American Association of Singapore and provided a point of contact for the community, helping Americans and American businesses better understand the local environment.
M
arking the first wave of American companies into the Asia-Pacific region, two early movers into the market arrived more than 100 years ago and have grown with the city. ExxonMobil first began its operations here in 1893. Since then, the companyâ&#x20AC;&#x2122;s Singapore operations have developed into the largest integrated chemical and refining site in the world. Citibank started operations here in 1902 and now employs more people in Singapore than any other bank and has been named one of seven domestic, systemically important banks. American businesses continued to enter Singapore and, on January 24, 1934, The Straits Times announced a tentative proposal to set up an American Chamber of Commerce in Singapore. Although a business association was not formally established until later, American businesses had begun to prosper in Singapore. While many were trading companies, modern industries also began to develop during this period. Notably, Coca-Cola began operations here in 1936 and energy giant Chevron opened its doors in Singapore in 1933. After independence in 1965, the Singapore government placed a strong emphasis on developing an industrialized economy that could create jobs
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and improve the livelihoods of Singaporeans. Large corporations brought capital and expertise to bear on this island state as the American business footprint expanded into maritime, logistics, construction, and aerospace. Recognizing the strong potential of Singapore as a prominent port in the heart of Southeast Asia, the American Bureau of Shipping (abs) launched local operations in the early 1960s. At the nexus of major shipping lanes, the nation grew to become a logistics and supply chain management hub. In tandem with Singaporeâ&#x20AC;&#x2122;s growth, abs has established the companyâ&#x20AC;&#x2122;s first regional headquarters and overseas engineering Research and Development (r&d) center. As Southeast Asia continued to develop economically, the need for improved infrastructure and technological advancements intensified. To support the ongoing industrialization in the region, Caterpillar set up its first facility here in 1967. It has since grown in size and scale to include operations in manufacturing, distribution, and financial services. To support the increasing utilities needs in the region, General Electric invested in Jurong Industrial Estate in 1969 and has developed from low-wage assembly operations to a high-technology center
providing expert solutions to global customers. As more American companies established operations in Singapore, the need for a formal business chamber strengthened. In 1969, the American Business Council was formed under the auspices of the American Association of Singapore. The American Business Council, later established as an independent entity and renamed the American Chamber of Commerce in Singapore, was created to serve the needs of the growing American business community in the country. Over the next 30 years, Singapore’s industrialization evolved toward technical manufacturing in sectors such as electronics, information and communication technology, and biotechnology. One of the first-movers, Pfizer began operations in Singapore in 1964. The company has continued to deepen its investment in the nation over time, launching seven different products that have been identified as pharmaceutical breakthroughs. During this period of rapid change, the Economic Development Board (edb) played a vital role in facilitating Singapore’s economic transition by recruiting and incentivizing world-class companies to invest in the nation. Many of these investors were American. In the late 1960s, edb sent a team to Palo Alto to convince Hewlett-Packard to establish operations in Singapore. hp then conducted a feasibility study that convinced it of Singapore’s business potential and led to the establishment of Hewlett-Packard Singapore in 1970. Over the years, hp’s transformation has mirrored that of Singapore’s economy; the company’s Singapore presence today is a regional strategic hub for all core functions, including manufacturing, r&d, and supply chain operations. Edb also successfully recruited Texas Instruments (ti) to start a production line in Singapore in 1968. TI Singapore was able to establish operations and attract a qualified workforce so quickly that it completed its first shipment of semiconductors and integrated circuits within just 50 days. This considerable achievement marked the start of Singapore’s thriving electronics industry. Over a decade later, in 1982,
Excerpt from The Straits Times, January 24, 1934. Source: The Straits Times © Singapore Press Holdings Limited. Reprinted with permission
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Seagate, a data storage company, opened its first overseas location in Singapore. With the first hard disk drive (hdd) facility to operate in Singapore, the company captured half the market for small hdds and reached sales of us$40 million. Today, Seagate employs over 6,000 staff, including more than 500 design engineers, here. In the years that followed, the number of American technology firms establishing operations here continued to grow. Leading companies such as Ab Initio, Adobe, Amazon Web Services, Autodesk, Cisco, Dell, emc, Google, ibm, Intel, InterCall, Micron, Netsuite, Oracle, and Symantec opened country and regional offices in Singapore. Reflecting Singapore’s development, the presence of American food, beverage, and consumer products companies in Singapore grew. Procter & Gamble established operations in Singapore in 1987 with 100 people. Today, the world’s largest consumer goods producer now employs more than 2,000 business professionals and researchers from its Asia headquarters and Innovation Center in Singapore. Demand for unique products and services became increasingly prominent. When McDonald’s Singapore opened its first store at Liat Towers in 1979, the outlet achieved a world record for the highest volume of hamburgers served in a single day. For many of our members, Singapore has been the site of many ‘firsts’ in their history. With innovative product launches, centers of excellence, regional training hubs, and cutting-edge research and innovation centers, American companies continue to break new ground. Some companies have launched new products out of Singapore, such as Coca Cola’s Heaven and Earth tea line, inspired by local tastes. Others in the manufacturing and technology sector established their first major Asian manufacturing plants or technical hubs in Singapore. Prominent American universities have chosen the city-state to be the site of their first regional campuses, while primary/secondary and additional higher education institutions have flourished here as well.
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Selected Firsts from Survey Respondents: American Manufacturing Company
“Singapore is the site of our first major manufacturing plant in Asia. This is the biggest capital investment in the history of the company.” American Technology Company
“Singapore was the first technical hub for Asia.” American Pharmaceutical Company
“Singapore is the pilot model for various innovations in the medical space.” American Multinational Consumer Goods Company
“Our Singapore Innovation Center is the country's largest private research facility.” American Research University
“Singapore was the location of our school's first campus in Asia.” Major American Airline
“Singapore was the location of the company's first and only global reservations center outside the U.S.” American Telecommunications Company
“A Singaporean is the first Asian CEO in my company in Asia.” American Multinational Banking and Financial Services Corporation
“Many innovations developed in Singapore have been rolled out globally.”
Growing Business Partnerships
The Singapore government has actively encouraged expansion by fostering an environment conducive to investment. Companies are confident that the good relations between Singapore and the United States will continue to have a positive impact on making Singapore an attractive destination for u.s. investment. Bilateral successes such as the u.s.-Singapore Free Trade Agreement (fta) create an enduring framework for business growth. This agreement, which
entered into force in 2004, established a global gold standard for ftas and offers extraordinary opportunities for American and Singaporean companies wishing to trade, innovate, and expand in the partner economy.
Selected Insights from Survey Respondents: U.S./Singapore Free Trade Agreement
“The U.S.-Singapore FTA was a major milestone that opened the door to our significant expansion in the domestic Singapore market.” Impact of Cordial Bilateral Relations on American MNCs
“The excellent relationship allowed U.S. MNCs to grow in Singapore and the regional countries through us.” Government Support
“U.S. Government agencies and the EDB in the U.S. help to bring business to Singapore especially in the defense and technology sectors.”
American executives frequently cite the Singapore government’s foresight in identifying and addressing challenges to the country’s competitiveness as a major factor in the nation’s economic success. This positive outlook is mirrored in international rankings. For the ninth consecutive year, the World Bank’s 2014 Ease of Doing Business Index ranked Singapore as the most business-friendly environment in the world. Our survey respondents confirmed this sentiment, with over half listing the ease of doing business as one of the greatest advantages of Singapore as an investment destination. The willingness to embrace this freedom to innovate and explore new possibilities led to considerable successes, and American companies are frequently recognized for their creativity and originality. More than 100 AmCham members report having received awards for excellence here, including the nstb Technology Award, sme Asia Award, Distinguished Public Service Star, Nanyang Entrepreneur Award, Best hr Leader Award, and sia Architectural Design Award.
Chevron Terminal at Tanjong Penjuru (1968)
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ExxonMobil – Integrity in Operations, Involvement in Community An interview with Gan Seow Kee, Chairman and Managing Director, ExxonMobil Asia Pacific
ExxonMobil has been operating in Singapore for more than 120 years and it is one of Singapore’s largest foreign manufacturing investors, with over US$15 billion in fixed asset investments. After the merger (between Exxon and Mobil) in 1999, its Singapore base serves as the Asia-Pacific hub for ExxonMobil’s downstream and chemicals businesses, including trading, production, sales, and marketing. In 2013, the startup of its Singapore Chemical Plant expansion made it ExxonMobil’s largest integrated manufacturing complex in the world.
G
an Seow Kee, Chairman and Managing Director of ExxonMobil Asia Pacific, said, “We take pride in running our business well – in providing energy, petroleum, and petrochemical products to Singapore and other countries in the region and the world. We strive to do that safely, reliably, and in a cost-efficient and sustainable manner.” When asked about the challenges he sees ahead of the business here, Seow Kee said, “We take a long term view of our business. ExxonMobil’s strength is in a global and diversified portfolio which positions the company well through business cycles.”
A photo of the old Orchard Road Esso station, taken August 16, 1969.
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He noted, however, that the global nature of the oil and gas business also exposes the Singapore business to regional and global risks. For example, he said, “The recent shale oil and gas revolution in the u.s. has resulted in much lower energy and raw material costs for North American producers and exporters, and is causing a comparative gap between prices in those places and in Singapore. The significant expansion in export capabilities in areas such as the Middle East also has an impact on the Asia-Pacific marketplace.” “Nonetheless, we will still see growth in this part of the world albeit at a slower rate,” he said, adding, “The fundamentals to success remain the same. We will continue to do what we do well, run our operations in a cost- and energy-efficient way, while ensuring that safety remains our top priority. The integration of our refinery with the chemical and lubricant manufacturing facilities here helps us optimize our molecules across the entire value chain. We are also focused on making sure we run our business and operations safely, and in an environmentally sustainable manner, which will ensure the longterm success of the business.”
Beyond sustainability, the quality of the prodFor Seow Kee, ExxonMobil’s investment in ucts ExxonMobil produces is just as important people and people development is also close to ensure that the business continues to thrive. to his heart. Thirty-six years ago, when he first The growing middle class in the region will started working as an engineer at Esso (one of demand not only more energy and petrochem- the ExxonMobil brands), taking a boat ride out ical products, but also expect quality products. to Pulau Ayer Chawan (one of the islands now Seow Kee said, “We’re here for the long term joined to form part of Jurong Island) was part and will continue to invest in the business and of his daily routine. During his tenure with the facilities to ensure that we can provide high company, he took on various positions, including quality products for people and in turn, reap two separate stints in the United States – first to the value for us.” He cited the example of the third If I reflect back on the last 50 years, cogeneration plant as we grew together with Singapore, that ExxonMobil is building at its refinI’m most proud about our investment ery to improve enin people, both in our employees ergy efficiency, as and also, the Singapore community, a recent investment in Singapore. whose lives we have touched through At ExxonMobil, our community investments and corporate social volunteerism efforts. initiatives and programs are carried out with a similar consideration: long-term partnerships that make New Jersey in 1992 and then to Virginia in 2012 a positive impact on the community. For instance, – before he returned to take on his current role. ExxonMobil has been supporting the National Seow Kee said, “We run a very capital intenInstitute of Education (nie) since 1996, sponsor- sive and complex business, and we sell a whole ing the biennial Caring Teacher Awards. In addi- range of products in a wide variety of markets. tion, the company also supports the Outstanding So we’ve always held the view that in addition Social Worker Awards in partnership with the to investing in the hardware, we also invest in Singapore Association of Social Workers with our people to run the business. We have in-house the support of the Ministry of Social and Family and external training programs for our people, Development, to recognize social workers and to identify and channel them to the right job and support their personal development. Many of to get the right exposure. I’ve had the privilege its employees also actively participate in com- of being part of the engineering, sales, and fipany-organized community outreach activities, nance teams. With ExxonMobil’s broad scope such as blood donation drives and distribution and geographic spread, we currently have more than a hundred Singaporean employees based of food packs to low-income families. On this spirit of volunteerism and community overseas, gaining more business knowledge and outreach, Seow Kee commented, “If I reflect people skills before they take up further senior back on the last 50 years, as we grew together leadership positions.” with Singapore, I’m most proud about our investThis dedication to both the technical and hument in people, both in our employees and also, man aspects of the business will ensure that the Singapore community, whose lives we have ExxonMobil remains well-positioned to meet touched through our community investments the energy challenges of the future. and volunteerism efforts.”
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Enabling Progress with Citi An interview with Michael Zink, Head of asean and Citi Country Officer, Singapore
For more than 200 years, Citi has been making a difference to individuals, corporates, and communities by enabling progress globally. By providing financial solutions that are relevant and timely, Citi has empowered its clients to achieve their aspirations. Since it was first established in 1812, Citi has grown into an institution connecting over 1,000 cities, 160 countries, and millions of people. Its Singapore operations began in 1902 and Singapore was one of six cities in this first wave of overseas expansion that included Hong Kong, Yokohama, Shanghai, Manila, and Calcutta.
W
hile Citi’s presence in Singapore grew over the years, a key milestone was the signing of the u.s.-Singapore Free Trade Agreement in 2004, which opened the banking industry to foreign banks. Now, Citi is the biggest foreign bank in Singapore, both in invested capital and operations, and one of the seven domestic systemically important banks identified by the Monetary Authority of Singapore (mas). The Singapore office is also home to Citi’s regional operations with its second biggest global dealing room. Citi’s Head of asean Michael Zink noted, “For a hundred years, we waited patiently, and did what we do very well, and the moment the door was thrown
All of the employees of Citi in Singapore posing for a 1970 advertisement for Citibank.
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open to us, we ran right through it. So we are very proud of that.” From four branches and one offsite atm before 2005, Citi now has over 1,400 customer touch points today. “However, our success is really built over a long period of time, about four or five generations, not just a couple of decades. A lot has changed over the years including Singapore’s independence and the creation of asean. We have had to endlessly adapt to the marketplace and continuously evolve our business. Citi’s success here is in no small measure rooted in the fact that we stay well-aligned with Singapore’s development and its objectives of being a financial center.” Michael said, “We have been a contributor to Singapore’s prosperity by bringing industry leading banking technology and products to the marketplace. Our products and service have also evolved over the years to address the new challenges and needs of our clients. It’s an endless adaptation of products, knowledge, technology, and commitment to the injection of capital.” So what has made Citi so committed to the Singapore market? “First, the mas is one of
the best regulators in the world. Best doesn’t all male because that does not reflect the nature mean nice or the easiest to get along with. But of the business that we are trying to manage. So, mas is good, they are very well informed, they the leadership team is a fair and accurate reflecknow what they want, and they run a very tight tion of the business that they are responsible for.” ship. As a consequence, Singapore is a safe and The current debate in Singapore around foreign progressive financial center to operate in. Next, versus local talent “has to be put into perspecthe endless ability to adapt is something which tive,” according to Michael. “For multinationals, Singapore does very well. Since 1965, Singapore we have flexibility in our operating footprint. has done a spectacular job of adapting to the We can either bring talent here to do something world around them. It’s that ecosystem of cer- – program coding for example – or we can shift tainty and stability that you can plan around.” the work to an overseas location. Singapore has In addition, Citi and Singapore have both traditionally been open with its talent policies, placed a strong emphasis on finding and de- and changes to it will take time. There are not veloping talent. “That (at left) is a picture of enough local graduates today in, say, computer everybody who worked for us in 1970, taken sciences, and it is very difficult to hire a graduate in Boat Quay, when we were a player with 150 in art history and convert them to a coder. There people. That world and this world are different are a lot of people from India, the Philippines, but we are still properly sized and have the right and China with these skills, so we bring them to team. Today, we have about 10,000 people.” Singapore to help our IT units while at the same “Every year, we go to the local universities and time we expand our local Singaporean talent we hire about 200 graduates. Some people stay pool in these areas. It cannot be done quickly.” with us two years and some people stay with Challenges are not new to Singapore. However, us two decades, acquiring knowledge, honing Michael expressed confidence that Singapore skills, and becoming better leaders. We work is well-equipped to meet those challenges. The closely with the institutions to develop the next Singapore government is “very good at asking cohort of experienced executives to lead the market The trends we talk about, globalization, and industries. This urbanization, digitization, they are all would be one of the most inf luential very compelling. All the wealth and and beneficial ininnovation tend to gather in cities, and vestments we could for Singapore, that will only accelerate. make, both for our individual enterprise and for this market in which we operate and prosper. questions, whether it’s economic, social, or poThat’s how we thrive.” litical and is good at solving the issues that may Citi also seeks diversity in its leadership. arise. If you are willing to consistently engage Michael noted, “If you don’t have all the per- with them over time, there’s going to be a partner spectives at the table, you are going to miss on the other side who’s going to work with you.” something. It’s just in our enlightened best inOverall, Citi is bullish on Singapore and the terest to have a management team that looks like region. “asean is one of the best businesses we our employee base. It’s also important to have have on the planet. The trends we talk about, glopeople on the leadership team who are into tech- balization, urbanization, digitization, they are all nology, who understand private banks, etc. And very compelling. All the wealth and innovation you need a good balance, you wouldn’t want the tend to gather in cities, and for Singapore, that team to be all global talent or all Singaporean or will only accelerate.”
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Chevron Provides Energy for Progress An interview with Mark Nelson, President of International Products, Downstream & Chemicals
Chevron is the second-largest U.S.-based energy company and the fifth largest in the world, based on market capitalization. For more than 130 years, Chevron has developed some of the world’s most complex crude oil fields. As the regional headquarters for operations in the Asia-Pacific region, Singapore plays a critical role in Chevron’s global operations.
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ark Nelson talked about some distinct moments he is proud of. “As a corporation, the Chevron-Texaco merger really solidified the portfolio we were working on, and all the parts of the business that would eventually be headquartered out of Singapore,”
This 1964 ad illustrates the long history of Chevron’s Caltex brand. Caltex has a strong heritage and legacy of 79 years. Today, Singapore is the headquarters for the Caltex brand, serving customers in Asia-Pacific, Africa, and the Middle East.
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said Mark. “We’ve been in Singapore for over 80 years, and moved the regional headquarters here in 2010. The reason for moving our non-u.s. business and leadership team here was driven by the fact that this was a growth part of the world, and Singapore is one of the easiest places to do business globally. Our portfolio here includes Africa, the Middle East, and all of our Asia businesses. We also have our lubricants and chemicals businesses for the region located here. In Singapore, we have a 50% interest in the Singapore Refining Company; Chevron Oronite, our largest additive manufacturing plant in Asia-Pacific which we expanded and doubled in capacity in 2014; and the Caltex service station network.” Mark is also a Board Member of Singapore’s Economic Development Board (edb), the government’s lead agency to promote investment. Through this role, he has been able to gain insight into the country’s strategy for enhancing Singapore's position as a global business center. “Even from the outside looking in, I was certain Singapore couldn’t have accomplished what it has achieved without a strategy.” Mark continued, “And now, having a little bit of a look under ‘the hood,’ it’s certainly a very deliberate and
successful strategy. Singapore has had to choose and on secondary experiences like getting peowhat it will be good at and we as businesses can ple to have international work experiences. One part of the equation is creating opportunities contribute to that.” “What’s exciting about Singapore is that the gov- for people to learn the business. The other part ernment actually benchmarks itself with the com- is determining at which point it is good for the petition, just like what a business owner should company and the employee to have an expatriate do, thinking about whether they are competitive assignment. We are trying to encourage people to and how they should close the gap, or maintain have international assignments somewhat earlier a positive gap,” said Mark. “They’ve designed a in their careers. You may experience an internadozen matrices or so, for example, connectivity tional assignment and you may say, ‘I learned a and the ability to attract multi-national compa- lot. Thank you very much, but I don’t want to do nies (mncs). One metric might be whether the that again. I’ll still be a loyal employee and great.’ country should be a business hub, so things like Or you may say, ‘That was fun, what’s next?’ livability and cost would have to be part of that Speaking for Chevron, we’re working with edb matrix. It’s never easy to measure, but they do on the internship opportunities, which include all they can with a view toward improving where building these experiences in earlier.” possible. Singapore’s leaders have a debate about Mark sees no concern for Singapore in retaining what gaps they need to close, and the discussion its place as the business, financial, and trading evolves over time. You could even argue that hub for this part of the world. What he thinks foreign direct investment should stabilize after the city-state has to be cognizant of is the link some time, and one should look at the money between the cost of doing business in Singapore that has already been invested. The fact that they and the productivity that is associated with it. have those debates shows that the conversation is active What’s exciting about Singapore is that and dynamic.” One of the dethe government actually benchmarks bates centers on itself with the competition, just like leadership. Mark what a business owner should do, said, “The vast majority of employees thinking about whether they are in our portfolio are competitive and how they should close locals, and while we the gap, or maintain a positive gap. do have expatriates from the region, it’s still very locally driven. The challenge that we do have is getting those who are “Achieving that balance takes a partnership beborn and raised here interested in experiences tween businesses and the government.” Mark outside of Singapore. Singapore is such a won- elaborated, “That’s the thing that the government derful place to live and work, so when people has to continue to work through. As a country get into that family side of life, why would they that has come so far in 50 years, there’s a natural leave? If they do leave, will they come back? On question of how you balance the business and the business end, the question would be whether social objectives. These tensions exist everywhere we can get Singaporean leaders to come back and in the world and attention to these questions will lead mncs. That’s one of the conversations we have to come from this generation, and the genare having with the government via edb. edb erations to come.” is working on programs for incremental training
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Moments of Happiness with Coca-Cola An interview with Iain McLaughlin, President, ASEAN Business Unit
Over the years, ASEAN has become an important market for The Coca-Cola Company. Significant investments have been committed to the region and Singapore plays a pivotal role in unlocking its potential. Coca-Cola recognizes this major commercial center not only as a gateway to Asia, but also a hub for innovation, which is integral to Coca-Cola’s business.
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Coca-Cola refreshment stand, Singapore 1958
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ain McLaughlin, President of the asean Business Unit, discussed Coca-Cola’s longstanding interest in Singapore. “We have been operating here for close to 80 years, on a steady trajectory of growth. In this time, we have opened bottling and concentrate plants and expanded our product offerings. Today, the Coca-Cola system in Singapore manufactures, markets, and distributes more than 40 beverages, from full and no-calorie sparkling beverages such as Coke, Coke light, Fanta, and Sprite zero, to juice drinks such as Minute Maid Pulpy, isotonic, water, coffee, and teas such as Heaven and Earth.” Iain added, “We are especially proud of the innovations born here, including our Heaven and Earth tea line, which was developed from our understanding of local tastes. The homegrown brand has become so popular with local consumers that it is the number two tea brand in Singapore and has since launched in Malaysia.” Iain attributed such successes in part to Singapore’s comprehensive r&d environment, deep talent pool, and strong culture of innovation. “As an example, last year, we entered into a venture with the Agency for Science, Technology and Research (a*star) to develop new technologies and innovations for Asian consumers and
to help us optimize our production processes In recent years, the company has made a while uplifting local research ecosystems for significant commitment to the promotion of food and nutrition,” Iain noted. “This type of active and healthy lifestyles. Iain added, “In public-private sector collaboration validates why a public health initiative to promote exercise Singapore will remain strategically important as a way of combating chronic diseases, we partnered with The National Parks Board and to Coca-Cola.” “Products aside, Singapore has also been Exercise is Medicine Singapore (eims) to dea source of inspiration for imaginative con- velop Singapore’s first eims-compliant fitness cepts and marketing,” Iain noted, adding that corner. Located at Simei Park Connector, the Singapore-focused marketing campaigns en- fitness corner features educational boards and sure relevance and continuously connect with fitness equipment that caters to a range of users, Singaporeans. Some of them have also travelled. from the physically fit to those suffering from “We created the Coca-Cola Hug Machine as chronic diseases such as obesity, diabetes, and part of our ‘Open Happiness’ campaign. It was hypertension.” Coca-Cola also works closely designed to dispense a free bottle of Coca-Cola with the Singapore Red Cross to hold regular each time a person hugged it. The machine was blood donation drives. Last year, it also partintroduced on campus at the National University nered with the Singapore Kindness Movement of Singapore to such overwhelming response to deliver Coca-Cola to foreign workers at conthat it was featured on news stations around the struction sites via drones, as a way of showing world, including on Good Morning America and abc We are especially proud of the World News.” innovations born here, including our Iain noted that Heaven and Earth tea line, which was there is an openness on the part of developed from our understanding of government agenlocal tastes. cies in Singapore to collaborate with industry to meet national objectives, especially appreciation for their hard work in helping to when it comes to developing new ideas. The build Singapore. Coca-Cola Company in Singapore has also part“This year, to celebrate Singapore’s 50th anninered with the Singapore Economic Development versary, we launched the ‘Share a Coke’ camBoard and the Health Promotion Board, and this paign with Coke, Coke zero, and Coke light cans openness to working with industry has been key and bottles featuring familiar Singaporean terms in influencing the company’s commitment and such as ‘Ah Boy’ and ‘Chiongster;’ colloquial nicknames such as ‘bff’ and ‘Bestie;’ classic decision to expand operations here. Coca-Cola also believes in driving positive expressions such as ‘I Love You’ and ‘You’re change and creating shared value for the com- the Best;’ and favorite Singlish phrases such as munities it serves. “We work best in an en- ‘Gam Siah’ and ‘Relak Lah,’ Iain said. “We emvironment with good relationships across all brace the nation’s unique ‘Singaporean’ identity consumer bases, including governments and and encourage people to strengthen connections ngos. Collaborating across what we call the with those around them during sg50.” ‘Golden Triangle’ of private, public, and civil As Singapore takes on its role as innovation sectors is an authentic way to tackle issues that capital of Asia, Iain believes that Coca-Cola is are important not only to us, but the markets ready to ink new chapters and will continue to where we operate,” Iain explained. “Our work make investments in this area. in Singapore is a testament to that.”
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General Motors’ Driving Force An interview with Stefan Jacoby, GM Executive Vice President and President, GM International
General Motors Company is one of the world’s largest automakers, with 218,000 employees on six continents. One of General Motors’ five regions is General Motors International (GMI), which opened its headquarters in Singapore in August 2014. Stefan Jacoby spoke about the choice to locate GMI in Singapore. “GMI covers more than ASEAN out of Singapore; we’ve close to 100 countries and territories in Africa, Asia-Pacific, and the Middle East in our portfolio. In fact, we are covering 56% of the world’s population and 17% of the global GDP.”
“W
e had several other locations pitch, and we decided on Singapore,” Stefan added. “It's in a fantastic location, it's in the heart of the region; most markets are accessible within a seven-hour flight and accessibility is very important. Singapore is a fantastic logistic hub with the airport close by and many connections globally. We have a great pool of talent here, which we can access and it is also part of our strategy to recruit local
location. I also have the feeling that with the spirit of Singapore, with that kind of fantastic transformation Singapore has made over the last 50 years, it fits into the assignment which is ahead of us.” Stefan continued, “We spun off this operating unit from Shanghai because China has had so much momentum over the last couple of years that we decided to have a dedicated team running General Motors’ Chinese business. Our current headcount in Singapore stands at 220, of which more than two-thirds are local We talk about ASEAN and all of the hires. We’ve also possibilities we create, and that brought back a couple of Singaporeans all looks good on paper, but these who worked in markets are so specific. The area is so China in order to diverse, and it actually needs to have a localize global employees from our different approach market to market. global operations.” Gmi does not just talent. It's also very attractive for global talent oversee countries from Singapore, but truly to work here in such an environment. It's safe, operates its Singapore base as a hub. Stefan it's clean, and it offers a great education. So I noted, “We are in the middle of a significant would say that it's pretty clear why we decid- transformation all over the region. We've made ed to locate in Singapore rather than another some bold decisions over the last 16-18 months –
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starting from stepping out of manufacturing in Australia and Indonesia, rightsizing in Thailand, and winding down certain operations in Europe, which has a big impact on our manufacturing in Korea. We have defined six summits, and these summits are Australia, the African continent, the Middle East, India, Korea, and Southeast Asia. We’ve had a lot of momentum since we've arrived here in Singapore. It's very important, our industry is a quick moving industry, but the cycle from investment and engineering to returns is maybe 10-15 years. What we are doing right now is to truly set a strategy for this market to not only grow, but to consolidate our operations to mitigate major risks and to be more sustainable.” Gm has been selling vehicles in Singapore for more than 70 years and is currently assessing how best to service a market that is increasingly luxury-brand focused: possibly using Singapore as a launch-pad for gm’s luxury brands into the asean region. According to Stefan, gmi’s core markets in asean are Indonesia, Thailand, Malaysia, and the Philippines. “In this industry we talk about asean and all of the possibilities we create, and that all looks good on paper, but these markets are so specific. The area is so diverse, and it actually needs to have a different approach market to market. But the asean
region offers, of course, a lot of opportunities. We've started operations in Myanmar. This is a true emerging market. It's kind of a white sheet of paper for the automotive industry. We have manufacturing in Vietnam. All these markets have specific segments of vehicles and trucks. Thailand for example is a mid-size pickup truck market, Indonesia is a small mpv market, and so on. Vietnam is a small vehicle segment market. Singapore is a specific market. It's an import market, which is highly competitive and highly expensive.” Given its operational footprint, the challenges gmi faces are global challenges. “We could start and talk the entire day about regulations, or the political situation in countries like Uzbekistan or Kazakhstan, which belong to our region as well. The impact of the Ukraine crisis on our business or regulation in South Africa or tough labor regulation laws in Korea and so on,” said Stefan. Closer to home in asean, Stefan sees the potential for Singapore to drive improvements in eliminating non-tariff barriers to trade because it has no vested interest as a potential manufacturing site for the automotive industry. Stefan said, “I think Singapore would be well placed to take a leadership role actually and open the markets. I think that would generate prosperity in the future.”
On December 2, 2011, renowned director Michael Bay graced the Grand Opening of TRANSFORMERS The Ride: The Ultimate 3D Battle at Universal Studios Singapore in a 2011 Chevrolet Camaro.
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The American Business Community Today Introduction The United States is Singapore’s greatest source of foreign direct investment (FDI); the level of U.S. FDI reached a record US$154 billion in 2013 and continues to rise. Numbering some 3,600 firms, American companies have expanded into an ever greater range of industries and employ tens of thousands of Singaporeans. Right now, Singapore is not only an important manufacturing site for American companies, but it is also a vital location for many industries including finance, legal services, education, human capital, hospitality, management consulting, marketing and communications, and transportation. For U.S. companies, Singapore today is a regional hub and key destination for cutting-edge research, design, and innovation.
Profile of the American Business Community
The American Chamber of Commerce is the largest foreign business association in Singapore. Our 750 members’ broad diversity of sectors, company size, and corporate profile is reflected in our SG50 survey results and the interviews that this publication presents. The following discussion summarizes key characteristics of the AmCham members who responded to our special SG50 survey. Company Overview: Two-thirds of the companies participating in the SG50 survey for Reflections are American, followed by 17% Singaporean, and 12% from other countries. Most companies in the survey operate in the services sector (72%). The average respondent company has been in Singapore for more than two decades. The vast majority (77%) have covered the region out of Singapore for five or more years.
Location of Global Headquarters 70%
65%
60% 50% 40% 30% 16%
20%
12%
10% 0%
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United States
Singapore
Europe
3%
1%
3%
Asia (except Singapore)
Australia
Other
Sector in Which Respondent’s Company Primarily Operates Manufacturing
Services
28%
72%
Manufacturing Sub-Sectors
Services Sub-Sectors
Food, beverages, and tobacco
18%
Information and communication
12%
Bio-medicals
9%
Legal, accounting, and management
11%
Marine and offshore engineering
8%
Financial
9%
Electronics
8%
Education, arts, and entertainment
8%
Chemicals
8%
Architectural and engineering
8%
Aerospace
3%
Transportation
6%
Precision engineering
2%
Health and social
5%
Land transport engineering
2%
Real estate
4%
Printing and recording media
1%
Administration and support
2%
Other*
42%
Other*
29%
*Including footwear, pharmaceuticals, and healthcare
*Including design, advertising, and wholesale
Number of Years Respondent's Company Has Covered the Region from Singapore
< 5 Years 23% > 15 Years 45%
5 – 15 Years 32%
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Activities Respondent's Company Performs from Its Singapore Office 80% 70%
68%
64%
62%
61%
58%
60% 50% 40%
35%
30%
30%
18%
20% 10% 0% Marketing
Finance
Strategy
HR
Operations
R&D
Manufacturing
Other*
* Including consulting, supply chain, and professional services Note: As multiple responses are allowed, the total percentage may exceed 100%.
Investment: Over a quarter of respondent companies have invested more than s$500 mil-
lion in Singapore; another 15% have invested between s$51 million and s$500 million.
Approximate Amount of Company's FDI in Singapore (S$) 47%
50% 40% 30%
26%
20%
15%
10%
4%
8%
0% < 1 million
1 – 50 million
51 – 500 million
501 million – 1 billion
> 1 billion
Approximate Turnover of Company in Singapore (S$)
35%
29%
30% 25%
23%
22%
20%
14%
15%
12%
10% 5% 0% < 5 million
5 – 20 million
21 – 50 million
51 – 100 million
> 100 million
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Workforce Profile
Workforce: Almost 40% of respondent companies employ more than 200 people in Singapore; 14% employ more than 1,000. For over 60% of the surveyed companies, more than half of their Singapore workforce consists of Singaporean citizens. In the manufacturing sector, 73% of companies indicate that Singaporeans comprise over half of their workforce, compared to 57% of services companies. In terms of the size of the companies, 67% of mncs and 40% of smes have a majority Singaporean workforce.
Size of Company's Global Workforce 45%
40%
40%
35%
30%
25%
20%
15%
15%
12%
13%
10%
10%
7% 5% 3%
0% < 50
50 - 199
200 - 999
1,000 – 24,999 25,000 – 59,999
60,000 – 100,000
> 100,000
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Size of Company's Singapore Workforce 30% 26% 25%
20% 16% 15%
14%
13%
11% 10%
10% 7%
5%
5%
0% < 10
10 – 25
26 – 49
50 – 199
200 – 499
500 – 999
1,000 – 4,999
> 5,000
Percentage of Singapore Workforce Who Are Singaporean Citizens 45% 40%
40% 35% 30% 25%
23%
22%
20% 15% 15% 10% 5% 0% < 25%
30
25 – 50%
51 – 75%
> 75%
Leadership by Singaporean Executives: A company’s country head serves as the key interface between the company’s local operations and the rest of the company, and as the public face of the company in the country. For almost one-third of respondents, a Singaporean citizen
occupies this role for their Singapore operations. Companies that have been in Singapore longer are more likely to have Singaporeans serving as the head of their operations. For companies that have been in Singapore for longer than 20 years, the number rises to 40%.
Singaporean as a Head of Country Operations
Yes 32%
No 68%
Singaporeans as Heads of Major Business Units in Singapore Operations
No 37% Yes 63%
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Singaporeans in Senior Roles Outside of Singapore or in Roles More Senior Than Singapore Country Manager
Yes 23%
No 77%
For nearly two-thirds of respondents, Singapore head major business units in their Singapore ans operations, playing a critical role in company op erations in leadership and key decision making positions. The results are consistent across dif ferent industries, the number of years a company has been present in Singapore, and company
size. Many of these Singaporean leaders have risen to these positions over their careers with the company. 63% of respondents say that they have a Singaporean as a head of major business units in Singapore and 23% have Singaporeans in senior roles outside of Singapore or in roles more senior than Singapore country ceo.
Respondents' Role
Respondents' Role: The individual respondents are senior leaders within their companies, with 26% holding positions of ceo or equivalent and 39% holding other C-level positions. The majority of respondents have personal regional responsibilities beyond Singapore as well, most often across Asia-Pacific or Southeast Asia. Respondent's Role in Organization 40% 30%
35% 26% 18%
20%
8%
10% 0%
CEO or equivalent
Other C-level or equivalent
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COO or equivalent
6%
Head of HR or equivalent
4%
3%
CMO or equivalent
CFO or equivalent
Other non Clevel
3
Respondent's Personal Geographic Scope of Responsibility 45% 40%
39%
35% 30% 23%
25% 20%
17%
15% 9%
10%
6%
6%
APMEA
Other
5% 0% APAC
Southeast Asia
Singapore
World/Global
Community Involvement
Having had the opportunity to benefit from Singapore’s business-friendly environment, American companies also embrace the chance to give back to the community. As highlighted in many of the ceo interviews in this publication, American investors take corporate social responsibility seriously. Many companies are committed to long-terms programs to help others such as conducting financial literacy programs and enabling handicapped persons to secure gainful employment. Corporate Community Day (ccd), hosted by AmCham and the u.s. Embassy, draws the enthusiastic participation of member companies every year. Through this initiative, AmCham encourages its members to volunteer for a variety of causes around Singapore on the same day to create a large one-day impact and inspire volunteerism. Starting small in 2003 with six participating member companies, ccd has grown significantly. Ccd 2014 saw the involvement of 87 companies and 2,181 volunteers. Among the dozens of activities, participants distributed food to the needy, hosted cooking classes for underprivileged children, provided real-life work experience to special-needs beneficiaries, engaged with at-risk youth, and raised awareness of sound health practices.
J.P. Morgan invited 20 members from the Handicaps Welfare Association to their Changi office for a oneday event. Over 40 volunteers took part, with roles and responsibilities such as facilitating workshops, catering, and chaperoning the members throughout the day.
Cargill employees join in the company’s efforts to protect the planet and volunteer to plant trees in Singapore (2014).
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Citi marked its 200th anniversary globally as well as its 110th anniversary in Singapore in 2012 by giving back to the Singapore community. Michael Zink, Head of ASEAN and Citi Country Officer for Singapore, together with Stephen Bird, then CEO of Citi Asia Pacific, presented a check for S$100,000 to Han Fook Kwang, Trustee and Chairman of The Straits Times School Pocket Money Fund.
General Electric, in collaboration with South West Community Development Council, established a uniquely Singaporean Urban Health Park â&#x20AC;&#x201C; an innovative initiative that uses art murals painted throughout the gathering areas under a block of public housing in Bukit Gombak to educate, encourage, and engage residents to lead a healthy and socially active lifestyle.
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25 employees from Principal Global Investors volunteered at the Willing Hearts Soup Kitchen in Kembangan where they helped to prepare, cook, pack, and distribute meals to those in need.
Stamford American International School, Cognita, Camp Asia, Emmanuel Stroobant Group, and KKR partnered together to host a Super Chef camp for underprivileged children from Thye Hua Kwan Moral Charities.
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Making Modern Life Possible with United Technologies An interview with Bala Nadarajah, President, Southeast Asia
United Technologies Corporation (UTC) provides high-technology systems and solutions for the aerospace and building industries, making modern life possible. Today, Singapore is home to a wide range of United Technologies’ business activity, with over 5,000 employees powering state-of-the-art Pratt & Whitney Aerospace Maintenance, Repair, and Overhaul (MRO) facilities and regional hub offices for its building and industrial systems brands, including Otis elevators and escalators; Sigma elevators; Carrier heating, air-conditioning and refrigeration systems; and fire and security solutions from brands such as Kidde and Chubb. The company has a long history in Singapore and was at the forefront of shaping the aerospace industry in the country, including providing the first engines to a growing Singapore Airlines fleet through its Pratt & Whitney operations.
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plant for Geared Turbofan (gtf) engine components in Seletar Aerospace Park, marking the first time that Pratt & Whitney is bringing its advanced gtf engine production to this region. It will also be Pratt & Whitney’s latest addition, making Singapore home to our most c omp r ehe n sive In my opinion, Singapore will continue to aftermarket and aviation presence drive leadership in multilateral relations, outside the u.s.” enabling companies like UTC to go beyond One milestone the next 50 years in Singapore. event for utc was the installation of Otis elevators at Swissôtel The aerospace capabilities have had a presence in Stamford, formerly Westin Stamford, which East Asia over the last 30 years, with Singapore was the world’s tallest hotel in 1986. Since being home to utc aerospace,” said Bala. “Next then, Otis has continued to break new ground year, we will officially open the manufacturing in Singapore. Bala continued, “Earlier this ala Nadarajah, President of Southeast Asia, talks about some milestones achieved by utc since it started operations in Singapore in 1949. “We have a wide range of business activities in Singapore. Our
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year, Otis Singapore was selected by the Land Transport Authority to supply and install nearly 600 elevators and escalators for the northern stretch of the Thomson-East Coast Line mrt project. In addition to this being the highest valued new-equipment project win in Otis’ 161year history, I am proud that we will be a part of helping Singapore remain on the move for the next 50 years.” Bala added, “Just as Singapore often describes its people as its only resource, we at utc recognize that our people are our greatest asset. Through the utc Employee Scholar Program, we have invested more than us$10 million in bondfree scholarships in our workforce in Singapore, resulting in more than 500 degrees earned.” While investments in facilities and people change lives for the better, sometimes a song can resonate even more. “An old advertising jingle we ran in the 1980’s ‘The Carrier man can,’ was a runaway hit with Singaporeans, and remains a familiar tune to those of us who lived through that era. I recall that it was so popular that it was even sung by school children. It made Carrier synonymous with a great
product and a can-do attitude when it comes to service,” explained Bala. “In my opinion, Singapore will continue to drive leadership in multilateral relations, enabling companies like utc to go beyond the next 50 years in Singapore.” “With the 2020 aec vision, and asean becoming the 5th largest economy in the world, it will propel utc business growth in the global aerospace and building systems industries,’ Bala added. “The conclusion of the Trans-Pacific Partnership (tpp) agreement will significantly benefit bilateral relations and provide a platform to further strengthen mutual economic development. Similarly, the goal of the aec to drive regional economic integration has the potential to transform asean into a region with free movement of goods, services, investment, skilled labor, and a freer flow of capital, benefitting all AmCham member companies. The drivers of rapid urbanization, population growth, and increased economic power all contribute to an extremely exciting prospect for utc and drive our growth plans for this region.”
UTC is committed to environmental sustainability where we each must be responsible to be careful in our use of nature’s resources and promote practices that reduce the environmental impact of our operations and daily living. Its employees are shown here participating in World Water Day 2015.
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IBM Ushers in the Era of Smart An interview with Janet Ang, Vice-President, Systems of Engagement & Smarter Cities
IBM was incorporated in 1911 (in New York) as the Computing-Tabulating-Recording Company, and in 1924, changed its name to International Business Machines (IBM), reflecting its growing operations in Europe, South America, Australia, and Asia. Today, IBM is the world's leading information technology company, offering a range of integrated solutions, products, and services, operating in 170 countries.
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bm's history in Singapore dates back to 1953, when ibm established a branch office in Singapore to market and service its range of data processing equipment. Janet Ang, Vice-President of Systems of Engagement & Smarter Cities, shared how ibm Singapore contributed to the use and development of it in
System Science (iss). Leveraging ibm’s Global Systems Engineering Training Curriculum, iss trained hundreds of mid career civil servants as well as graduates fresh out of university, transformed them into systems analysts, and helped create the skills that were needed to take us from the industrialized age to the knowledge economy. I would say iss is a hallmark, a key In our SMART nation journey ahead, collaboration that whether it’s transportation, launched the partnership between telecommunications or mobility the Singapore govdata, we are fusing all of this ernment and ibm. I joined ibm at that data to create insights to manage time and I was percrises and strategic responses. sonally involved in It’s a very exciting place to be. helping many customers design their Singapore, a mission that mirrors the govern- applications using the Joint Application Design ment's objective of making the country a regional (jad) methodology, writing their problem and and global hub of knowledge-based industries. change management manuals. In many ways “One would have to look back, and look for- when I look back, at each step of the journey, ward,” said Janet. “When Singapore first em- ibm has grown in lockstep with Singapore. barked on its IT computerization journey 30 years Singapore has also grown in lockstep with ibm ago, the National University of Singapore (nus) in the technology evolution.” and the then National Computer Board (ncb) Janet continued, “Looking forward, we have partnered with ibm to establish the Institute of in Singapore, Prime Minister Lee Hsien Loong’s
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Smart Nation vision. All the service capabilities, like analytics, cognitive computing, cloud orchestration, Internet of Things (iot), open api, can be innovated and built out of here because the Singapore government has both a vision and the reputation of being able to execute effectively. I believe that ibm and many mncs alike are investing here because we believe that Singapore will continue to be the hub for many of these exciting digital transformations that are taking place as businesses and industries utilize Singapore as a living lab to pilot, deploy, and experiment to develop innovations and capabilities for Asia and global markets. It’s a cognitive era that we are entering, and we are very excited.” “We are early in the game and we have set the stage for innovation as seen in dbs Bank, who is helping their clients make better investment decisions through actionable insights, made with ibm Watson. In our smart nation journey ahead, whether it’s transportation, telecommunications, or mobility data, we are fusing all of this data to create insights to manage crises and strategic responses. It’s a very exciting place to be.” ibm continues to focus on knowledge transfer from the industry to the university. “Building skills and capabilities is the cornerstone of success. Last year, we partnered, once again with nus and the Economic Development Board, to establish the nus Center of Business Analytics. The center trains graduate students in the business and computing faculties to apply cognitive computing and big data analytics including predictive and fusion analytics of structured and unstructured data such as social media, video images, in domains ranging from financial services, supply chain management, banking, retail, healthcare, and public services. We will also be launching ibm Bluemix, an open standards platform as a service, soon with nus Enterprise, whereby students who are interested in startup ventures can come together with experts to leverage on ibm technology. ibm brings our expertise in areas like Watson, Bluemix, Cyber Security Intelligence, and Cloud to support the industry development of folks in the startup scene. It’s to inculcate the culture of innovation and entrepreneurship,” said Janet.
“The other part is really about efficient and sustainable data centers,” Janet added. “We’ve built a client center in Tampines, whereby we have a model center with very low pue, i.e., Power Usage Effectiveness, which means that there is high energy efficiency. In countries like Singapore with a tropical climate, we use heavy air conditioning just to keep the servers cool. Now, we’ve got a patented rear-door heat exchange technology whereby the use of water and the patented technology cools the system at a much higher efficiency.” In planning ahead, Janet emphasized the need to continue building up skills. “We cannot just see it as the skills we need today but the skills we need for the future, in 2030, 2050,” said Janet. “One thing that American companies have been good at, and we have been good at, is building skills. We are the first port of call for everybody, and we should continue that. We need to push it further up the value chain. So, how do you continue to move upstream, go up the value chain? One way is by working with the universities, to build analytics and deep domain skills. Another way is through working with companies to create consumer insights for the asean market. Within ibm, we spearhead Smarter Cities projects where we put up a team of experts, the best brains, to brainstorm for solutions to everyday problems. The complexity of the problems that needs to be solved actually requires a lot of integration. And, very often, it’s not just about the systems, it’s also about the people, the culture, the integration. For ibm, we’ve been in Singapore for the last 62 years; we know the market and the people trust us.”
IBM continues its Smarter Cities momentum with the announcement of the FASTER collaboration with the Land Transport Authority of Singapore (LTA), SMRT Corporation, and StarHub to improve the commuter experience across Singapore by applying advanced analytics for actionable insights.
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Caterpillar − Built for It An interview with Jeffrey Hardee, Executive Director, Government & Corporate Affairs, Asia-Pacific and Singapore Country Manager
Caterpillar is known for making equipment for the jobs that make history, equipment that is tested and built to withstand the most extreme conditions and for unmatched service. But its business is not just about moving earth and building infrastructure; it is about connecting the globe and changing lives. Caterpillar was formed in 1925 and today is the world’s leading manufacturer of construction and mining equipment, diesel-electric locomotives, diesel and natural gas engines, and industrial gas turbines. From its beginnings, Caterpillar operated internationally and was an early mover into the Asia-Pacific market.
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eff Hardee discussed his experience managing the business from the Singapore office. “Caterpillar made its first investment in Singapore in 1967, just two years after Singapore’s independence, although we had been
of the island on Tractor Road, which we had a hand in naming. Since then, we have grown considerably in Singapore, while helping Singapore to progress to be a world-class city state. In 1992, Singapore became our Asia Pacific headquarters and today we have eight facilities with 29 business units Singapore’s location and the ease and a workforce of doing business were strategic approaching 1,000.” Jeff discussed considerations when setting up our the strong growth regional headquarters and distribution trends in the recenter here and continue to be gion and what they will mean for compelling. The government is stable, Caterpillar. “The accessible, and listens to our input. Asia-Pacific, with Also, simply put, business works here. its diverse economies and interesting demographics, holds tremendous opportunities. Economic supplying equipment to Singapore long before that. Recognizing Singapore’s strategic location growth won’t be linear but the middle class is for trade, the initial investment was to establish growing rapidly, urbanization is accelerating, a parts distribution center for the Asia-Pacific and demands for energy and transportation are region. The facility was built in a swampy part growing. These trends will continue for many
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years to come and fit squarely into Caterpillar’s As Caterpillar looks to its future in Asia, Jeff business strengths,” said Jeff. “When we plan identified two challenges in Singapore that could for the future, we consider where we are man- potentially affect business growth in the country. ufacturing and selling now and how we might “Singapore has some limitations, land being one. need to change or add to our footprint in the It gets more and more difficult to obtain the sites region based on growth projections 10 to 15 years you might need so any company that wants to out. Our goal is to make sure we are deliver- increase its footprint in Singapore will have to ing the best value to our customers and this consider this.” The other major challenge relates requires end-to-end planning and an efficient to hiring quality workers. “The government supply chain to ensure our machines get to is looking at the country’s manpower needs where they are needed at the right time and and trying to reduce its dependence on foreign with unparalleled service.” workers. This does have an impact on compaCaterpillar has focused on building and main- nies making their decisions on where to invest. taining healthy business relationships as a way Multinational companies like Caterpillar like to create a competitive advantage. “Many of mobility of labor. I think the Singapore governour business relationships with dealers are ment recognizes this and, as a practical governmulti-generational. Our dealer in Singapore is ment, is trying to work things out.” To Jeff, the Singapore government is the leader Tractors Singapore and this relationship began in the 1920s when their principal Sime Darby within the Asia-Pacific region in driving open took over our dealer in Sarawak. We provide trade and investment. “The u.s.-Singapore Free a lot of training and support to ensure that our Trade Agreement was the first of its kind in the dealers are the best in the business,” said Jeff. In region and set a gold standard. Singapore is an addition to building relationships with dealers, active partner in the Trans Pacific Partnership Caterpillar recognizes that suppliers are vital (tpp) negotiations, is involved in the Regional to its service delivery. Jeff continued, “Just like Economic Cooperation Partnership (rcep), we have very tight relationships with dealers, is helping to drive progress in the asean we have hundreds of suppliers and we consider Economic Community (aec), and I expect them as part of the family. We try to localize our will play an important role in future discussupply chain to the extent possible and for some sions on the Free Trade Area of the Asia-Pacific. of our plants, we have as much as 60%-80% local Singapore embraces change and innovation as supply. We work hard to help them in their own does Caterpillar so we are really attracted to manufacturing operations and business practices this type of environment.” to encourage innovation and sustainability, just as we challenge ourselves.” While Caterpillar attributes its success in Singapore to the variety of products and services it offers to businesses, Jeff also praised Singapore’s stable and predictable business and government environment, “Singapore’s location and the ease of doing business were strategic considerations when setting up our regional headquarters and distribution center here and continue to be compelling. The government is stable, accessible, and listens to our input. Also, simply put, business works here; it’s efficient and predictable. We expect Singapore to figure prominently in our business plans in Asia-Pacific for many years to come.” Caterpillar's "pioneer generation" at its first facility on Tractor Road.
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Innovation at Hewlett-Packard Ng Tian Chong, Managing Director, Southeast Asia, Taiwan, & Hong Kong
“H
Ng Tian Chong, HP’s Managing Director for Southeast Asia, Taiwan, & Hong Kong joined HP as a financial analyst in Palo Alto, has held several senior positions at the company, and has been based in Hong Kong and Indonesia, as well as the United States and Singapore. A native Singaporean, he oversees all of the company’s business in this part of the world from HP’s Depot Road location. The region is HP’s biggest in terms of socio-demography – with a huge range of languages and a wide spread of emerging and developed economies.
P celebrates 45 years in Singapore this year,” said Tian Chong. “We came to Singapore when it was an infant. In 1969, edb went to Palo Alto and spoke to hp. At that time, four managers came to study the feasibility of setting up shop in Singapore. It took them six months, but they wrote a report that was so conclusive that hp had to come to Singapore. We first started with a manufacturing operation in the 70s. We had 69 people back
Girl Power!, a partnership between HP and the U.S. Embassy, enables young women in secondary school to learn about careers in science, technology, engineering, and math (STEM) through job shadowing and weekly mentoring sessions.
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then, in a small factory in Redhill. Four years later, we opened a sales entity with 21 people. Today, we have more than 7,000 employees in Singapore. This is one of the biggest hp sites in the world; we’ve got manufacturing, r&d, sales, marketing, operations, and supply chain. In fact, we’ve got the entire business ecosystem of hp in Singapore. If you talk about manufacturing, sales, and r&d all in one site, outside of Palo Alto, it’s probably safe to say that only Singapore has that kind of combination.” “Innovation is at our core and over the years, HP Singapore has played an important role in some key technological advances,” said Tian Chong. “The 35C changed the way engineers calculate, you could do reverse polarization and that was a landmark. It was so significant that I believe, in the mid-70s, the Science Federation of Singapore buried a time capsule in front of the Science Centre and the 35C was in there among the other inventions of that time, and it was made in Singapore.” Back in the early 1970s, hp estimated that it could manufacture a thousand units of the 35C per month in Singapore. The demand was so high that the number turned out to be 40,000 units instead. Other hp innovations in Singapore include the
hp Jonada, the first color hand-held Windows pc that became a worldwide hit. The Singapore
flexibility that companies need to hire or transfer foreign talent. As a regional leader, I need employees that understand the region and when international experience comes into Singapore, it contributes to the development of our domestic talent. While we have a world class education system, there is a major difference between skills and experience. When they blend, value is created. Taking a long view, Asia is developing fast and I believe that as we absorb this value,
team also helped set a Guinness record for the fastest desktop printer, made possible by hp’s printing r&d creating a new technology called ‘PageWide’ which could allow printers to print up to 70 pages per minute. While hp excels at innovation, the company strives to ensure that its breakthroughs reach the wider community. “We participate in events to transfer knowledge, so that local businesses learn If a business has a good idea, the how to do things in a more efficient Singapore government actually funds way. We also partand helps them get a head start. It’s ner on educational unique in that sense, Singapore is run programs and invite students to benefit like a company. So, people who are from mentoring,” incentivized with such programs also said Tian Chong. think like a company and this seeds hp works with chambers and govan entrepreneurial spirit. ernment agencies to reach as many local organizations as possible. Tian Chong continued, Singapore increases its ability to compete and “The Singapore government is very pro-active, seize the opportunities. I certainly hope that the setting up sbf and Spring Singapore. Not only Singapore government will continue to manage this tight labor situation with sufficient support do they provide the catalyst, they also provide and flexibility for companies like hp who are funding, the seeding capital. If a business has a good idea, the Singapore government actu- operating in Singapore as the regional hub for ally funds and helps them get a head start. It’s the long term.” unique in that sense, Singapore is run like a Based upon the government’s track record, company. So, people who are incentivized with he is optimistic. “I travel a lot in my capacity, such programs also think like a company and and everywhere I go, one question I get is how Singapore operates. Explaining why hp has this seeds an entrepreneurial spirit.” Having grown an innovative business into invested in Singapore is easy. It’s because of multiple sectors over 75 years and operated in this unique ecosystem that we have here. The Singapore for 45 of those, hp takes a long view government is always thinking ahead, planning on development. One of the near-term chal- for development; it’s already thought about the lenges that Tian Chong sees, is the increasingly 4th and 5th runways at the airport for instance. tight labor environment. “Singapore is home That’s why we’re invested here. We have a very to some of hp’s most valuable talent. However, positive relationship with the Singapore govas Singapore’s domestic talent pool develops, ernment. edb and all the government agensome question the arrival of foreign workers. cies are very strong. For us, our development As a Singaporean, I feel we must strike the right in Singapore has really followed the birth and balance between providing the right environ- growth of Singapore and we are really proud of ment for local talent to thrive and offering the that. We’ll be here for a long time.”
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D uPont’s Inclusive Innovation An interview with Hsing Ho, Group Managing Director - ASEAN
DuPont believes that the answers to global challenges can be found through inclusive innovation. DuPont works with customers, partners, governments, NGOs, academics, and other organizations to apply scientific expertise and knowledge in ensuring food security, harnessing renewable energy sources, and protecting people and the environment.
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sing Ho, Group Managing Director – DuPont asean, described the company’s history in Singapore. “DuPont has been present in Singapore since 1973. The company was primarily a U.S.-based organization when the Singapore office opened. The office has evolved in sync with Singapore, with notable phases in the early 1990s and early 2000s. In the ʼ90s, the company made substantial investments
remembers taking the ferry back and forth to the main island before the Jurong Island Highway was opened in 1999. Since 1973, DuPont has invested over us$1 billion in Singapore, employing at one time more than 900, and currently more than 450 people in its marketing and administrative offices at HarbourFront Place and its manufacturing facilities on Jurong Island and at Tuas. The bulk of the DuPont investment was made during Singapore has a good pool of talent the 1990s, significantly increasing across all segments and the lifestyle the DuPont footoffered by Singapore tends to attract print in the country. top talent. Policy changes in other Hsing elaborated on the DuPont decountries could pose challenges for velopment in the Singapore. However, it may be some 2000s, “This detime for these countries to match velopment phase was characterized Singapore’s total package. by divesting some companies, which in manufacturing facilities – including Adipic was also done globally, including the Lycra and adipic acid plants. The Zytel manufacturing Acid, Lycra Spandex, and Zytel nylon resin – and was the first tenant at Sakra Island.” Sakra Island facilities were kept, however. Divestments took place in conjunction with a shift towards investis one of the seven offshore islands amalgamated to form what is Jurong Island today, but Hsing ment in knowledge intensive manufacturing and
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away from more capital intensive assets. In this period, three plants were built, one of which was for Vespel, a unique parts and shapes business used in aerospace, electronics, and other applications. The company decreased its physical footprint during this time, but maintained its investment in Singapore, focusing heavily on human resources.” “The development of DuPont in Singapore can be thought of in stages: Singapore – asean – Global. Our offices here have been part of our overall growth as a company,” said Hsing. “Singapore is now the regional hub for DuPont with Asia-Pacific and global business leaders assuming full p&l responsibility based here. While labor, energy, and rents are costly in Singapore, it remains the DuPont regional hub because of the advantages in talent, infrastructure, and government support. Singapore has a good pool of talent across all segments and the lifestyle offered by Singapore tends to attract top talent. Policy changes in other countries could pose challenges for Singapore. However, it may be some time for these countries to match Singapore’s total package.” DuPont having acquired a food ingredients business called Danisco in 2011 also operates a laboratory for research in the food sector in Singapore – specifically ice cream, dairy, and baked goods – and plans to expand the work
being done in this area. However, a tightening labor market will make it harder to find talent here in the future. DuPont is active in reaching out to the community, especially in the area of raising science awareness in children. DuPont is proud of its participation in the Science in the Mall program and has been part of it for seven consecutive years. By bringing scientific exhibits to malls around Singapore, DuPont hopes to kindle children’s interest in science and inspire them to pursue careers in physical sciences. There was also collaboration with nus High School for Mathematics & Science Camps, where students participate in learning and discovery of science and technology using exploration, problem-based-learning, and peer tutoring. Looking ahead, Hsing sees two areas driving growth. According to Hsing, “One driver is the significant fdi into asean – in recent years fdi has surpassed fdi into China. The other is the increase in gdp per capita across the region driving consumerism and rapid middle class formation. Areas Singapore can improve going forward are ways to bring down the costs of electricity and infrastructure, and cultural building to allow higher assimilation of foreign talent with locals, and seek to become a global leader in sustainable development and clean energy.”
Groundbreaking ceremony for the Zytel manufacturing facility on Jurong Island with Philip Yeo and DuPont executives, November 1993.
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One Size Doesn’t Fit All: Unique Challenges and Opportunities in Singapore for SMEs An Interview with Killick Datta of International Brand Partners, Alison Eyring of Organisation Solutions, Chris Milliken of PengWine, and Jeff Weisel of Celadon Health Ventures
Small and Medium Sized Enterprises (SMEs) face a range of challenges and different opportunities that require distinctive solutions. Singapore is at the heart of a high growth region that offers SMEs a chance to tap into the ASEAN market, which has a population of over 600 million. Its relatively young population will allow it to take advantage of a demographic dividend; it is therefore expecting a high growth rate of about 5% in the next decade. An entrepôt city, Singapore exposes SMEs to excellent logistics capabilities and a huge potential client base due to the high concentration of Multi-National Corporations (MNCs). Singapore’s various cultures provide alternative perspectives and a heterogeneous market to cater to.
Starting Up
The ease of doing business in Singapore fosters an environment for smes to set up operations, affording entrepreneurs the ability to focus on growing their businesses rather than dealing with red tape. Alison Eyring, an organizational psychologist, opened a management consultancy in Singapore. Alison manages a team of 15 in Singapore and 50 worldwide. “This is our corporate headquarters. Singapore has been the easiest country for us to set up a business. Fifteen years ago, we didn’t have a lot of competition, but it’s very different today,” recalled Alison. Chris Milliken, a chef and wine maker, found the opportunity to expand his Chilean wine business in asean when his wife took up a job opportunity in Singapore. “I’ve been in Singapore for seven years and think that Singapore is a great place to be for the next 50 years. My wife and I are trying for a Singapore pr,” said Chris. Killick Datta of International Brand Partners is bringing his wealth of experience in the footwear apparel industry to build a brand out of
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Singapore. “I ran the international business of many brands such as Skechers, Nike, la Gear, and Diesel when they were all very small. So when I was invited to come and launch a brand out of Singapore, it was something my family and my core team embraced,” said Killick. Jeff Weisel of Celadon Heath Ventures is heading a corporate advisory firm specializing in the healthcare sector. “After about 20 years in Asia, mostly in the healthcare and pharmaceuticals sectors, I started my own business, working with healthcare companies, helping them find the capital to grow and plan their path to commercialization in regional markets,” explained Jeff.
Being Enterprising
Singapore is a unique place to start and operate a business. The panelists agreed that it takes a strong entrepreneurial spirit to get through the challenges. If Singapore wishes to encourage more of that sort of quintessential American entrepreneurial spirit in Singapore, the nation needs to foster an environment in which it is more acceptable to fail. Business owners need to fail fast, and pivot,
sharpening their ideas and processes at each turn. Jeff elaborated, “I was at a technology conference recently, having a chat with a guy involved in incubating startups, who said, ‘This is all interesting, but who in this room is prepared for the fact that most of them are going to fail?’ The reason is the system here punishes failure. One change that could help is to alter the bankruptcy laws, so that trying and failing in a business is not like a death sentence.” He continued, “The government does try to recreate a risk-taking ecosystem here. The structural problem is that the educational system here is still more geared to tasks, not creative thinking or risk-taking. While people are trying to get more of these elements in, the teachers and parents are educated in these more traditional ways. So, it’s something that doesn’t change quickly.” “I think I have a similar experience, if you have a set task, workers here can carry through very well. But if you need them to solve things, they are a little lost,” said Chris. While innovation and calculated risk-taking are assets in any industry, ingenuity and creativity are important requirements in the fashion industry. Killick noted that these traits are not yet sufficiently developed in Singapore, but the desire is certainly growing. “The fashion industry in Singapore is asking, ‘Why can’t we have our own globally known designer?’ They have great schools for design and business but have not been able to convert this into successful entrepreneurs.” Regardless of industry, continuing to create an environment that fosters entrepreneurship and risk taking, coupled with an education system that sparks innovation, would likely lead to more people taking an entrepreneurial leap in Singapore.
KILLICK DATTA
CEO, INTERNATIONAL BRAND PARTNERS
Industry: Footwear apparel Established in 2011
ALISON EYRING
CEO, ORGANISATION SOLUTIONS
Industry: Management consultancy Established in 2000
Accessing Capital
Capital is a key driver of all businesses, allowing entrepreneurs to start a company, innovate, and expand. Unlike for mncs, access to capital is still a challenge for many smes. Banks are more careful in extending credit to smes and venture capital does not connect easily to smes in Singapore. This risk-averse environment is changing slowly, but is still a reality for smes. Alison said, “The financial system here is very conservative,
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CHRIS MILLIKEN CEO, PENGWINE
Industry: F&B Established in 2008
JEFF WEISEL
MANAGING DIRECTOR, CELADON HEALTH VENTURES
Industry: Pharmaceutical/ Biotechnology Established in 2008
so 12 years ago, trying to get a hundred thousand dollars line of credit, I couldn’t get a bank to agree unless I could fully fund it. So I had to take a hundred thousand dollars, stick it to the side, and fully back the loan.” Jeff added that the challenges are not limited to traditional financing sources. “There isn’t really a true venture capital focus on biotech or medtech. Instead what we hear is, ‘We think what you have is really interesting, but our investors would prefer to have the money invested in later stage or even listed companies.’ But the idea of venture capital investing in publicly listed companies is almost a contradiction in terms. And then they go on to say that because they have links or sponsorship from the government, they can only invest in Singapore-based companies rather than accessing the broader region.” Aware of this disconnect between capital and smes, the Singapore government has created a series of initiatives to help bridge funding challenges for smes. For example, spring offers the Innovation and Capability Voucher, which supports smes in the development and implementation of simple solutions to improve business efficiency and productivity. A*star has put in place a team of intermediaries to match smes with ready technology solutions to improve productivity, with encouraging progress. “I think Singapore has done a lot to support smes,” said Alison. Starting and managing a successful business requires one to be savvy in navigating the operating environment, asking the right questions, and talking to the right people. Yet, while the panelists praised the government’s initiatives, they also saw opportunities for improvement. Chris explained, “spring, for instance, offers incentives and realizes that some are taking unfair advantage of those incentives, so then they make it harder to qualify for the money. But making it harder means there’s still a long way to go in bridging the funding gap. And changing the rules every year makes it confusing to smes.”
Managing Talent
When businesses grow, it is important to invest in talent in order to reap the benefits of more effective operations. For smes, attracting qualified
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talent is a shared concern, with nuanced variaKillick shared the effect of cost on the fashion industry. “The cost is high here, but if you go tions across different industries. “For a firm like mine, it can be difficult to back to New York, London, or Tokyo, it’s the recruit professionals or young graduates in cer- same high cost. There is a difference between tain fields because advanced degree programs fashion branded distribution and fashion retail. are not offered in Singapore. In my field, for Contemporary cities like New York, London, or example, you have more than 20 really good Tokyo have fashion. In Asia, Seoul and Hong PhD programs in the United States. Here, we Kong are becoming fashionable with some don’t even have one,” explained Alison. unique stores. Singapore is in the process of In the case of wine retail, finding capable grooming a local fashion industry.” managers also meant finding someone with In some industries, issues like ensuring ip local knowledge. “I’ve got a company in Chile protection take precedence over cost. Jeff noted, which produces wine and I export it to different “You need a certain lead time in biotechnology countries. I find it more effective to have one and the lead times are much longer with an person in each country representing the prod- extremely high failure rate. Singapore manages uct rather than one person in Singapore to be the ip aspect well, giving biotech companies the head of sales. Having someone I can trust on assurance that the rights to their innovation will the ground is important because each country be adequately protected.” Other times, cost concerns are balanced with is different,” said Chris. When one ventures outside of the conventional market potential. Chris said, “For me, one benbusiness model, the ability to identify oppor- efit of Singapore is that I can test my product tunities and connect with the right people is here because you have different cultures so important. Jeff said, “I don’t have staff; I work you can target segments and test your brands, in a network of people who are experts with making it easier without having to go to every backgrounds in, for example investment banking single country. Also, if your brand is successful as I don’t have experience in structuring deals in Singapore, say in a five-star hotel here, it since my experience is mainly in industry. So would help the sales of your product elsewhere it’s more the companies I work with than the in the region.” staff I work with. I think entrepreneurs tend to Alison explored the feasibility of job-sharing. “We’ve got a consultant right now working out of be leaner on the ground here.” The fashion business, while generally small Sydney and she’s job-sharing with an employee in size, requires different skill sets like design, here. We’re also looking at hiring a PhD intern manufacturing, logistics, branding, and mar- from the United States who would work out of keting. “In my industry, brands really always the United States, and we’d fly her out a couple start small and only a few become major heavy- of times,” concluded Alison. weights such as Louis Vuitton and Nike. I have Singapore’s location and ease of doing businine staff here and 20 abroad which include my ness permits smes to grow in the heart of design team, but we use independent distributors one of the world’s most exciting markets. The to market the brand in the 142 countries that we Singapore government offers more assistance have launched in,” said Killick. to its smes than perhaps any in the world, yet the panelists emphasized that there is still a Managing Cost long way to go—in terms of culture, capital, Other than talent, the cost of living and doing and cost—in transforming the country from a business in Singapore is a growing concern, great location to access the region to one that is but it has not yet reached a point where these truly great for starting and growing a business. entrepreneurs are considering relocating to other The government appears poised to tackle the markets. Instead, they are pursuing other meth- challenge and, if past success is any indication, ods of managing costs. will likely succeed.
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The Current Business Climate in Singapore Introduction Over the past 50 years, Singapore has made impressive progress developing economically while concurrently investing in the well-being of its people. Despite a limited domestic market and small geographic size, Singapore continues to attract investment from companies all over the world. This section provides an overview of Singapore’s current business environment from the perspective of AmCham members. It examines the city-state’s key advantages as a hub for business and investment, government support to business, perceptions of American businesses’ contributions to Singapore, operational challenges faced by firms, and the characteristics of the Singaporean talent pool. Finally, it highlights the domestic and regional issues that are at the top of the business community’s list of priorities at the moment.
Singapore’s Advantages as a Business Destination
Our member companies came to Singapore at different times and for varying reasons. Each has decided to stay and develop its business, as Singapore offers an array of advantages for investors. Respondents were asked to list the most appealing qualities of Singapore as an investment destination. The Greatest Advantages of Singapore as an Investment Destination 60% 50%
52%
48% 36%
40% 30%
35%
32%
29%
20% 10% 0% Ease of Conducting Business Sound Infrastructure Anti-Corruption Attitude and Policies
Stable Political Environment Attractive Tax Rates Attractive Location for Employees/Families
Note: As respondents were allowed to choose up to three responses, the total percentage may exceed 100. Responses to this question do not vary by com-
pany size or sector, with two exceptions. First, mncs (54%) are comparatively more likely than smes (43%) to value “ease of doing business.”
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Second, smes (42%) are comparatively more likely than mncs (34%) to select “attractive tax rates.”
Government Support for Businesses
The Singapore government is characterized as business-friendly and the city-state scores well in surveys on the easiest places in the world to do business. We asked respondents if their firms have received support from the Singapore government and how the u.s.-Singapore relationship has helped their businesses grow in Singapore.
Has Your Company Previously Benefited from Support from the Singapore Government? 60%
50%
49%
40%
37%
30%
20% 14% 10%
0%
Yes
No
Other
Almost half of our survey’s respondents have
received support from the Singapore government in the form of Economic Development Board (edb) or International Enterprise (ie) Singapore assistance, Productivity and Innovation Credits (pic), or through the Innovation and Capability Voucher (icv) scheme. Over a quarter of mnc respondents report that the edb has assisted them in establishing their businesses in Singapore. Similarly, a quarter of mncs indicate that they have received support to expand their operations in Singapore.
Many programs are available to companies of all sizes. 17% of mncs and 14% of smes have benefited from the pic support provided by the Ministry of Finance, and 14% of respondents indicate that they received funding from the Ministry of Education and the Ministry of Manpower. Conversely, 49% of sme respondents and 34% of mnc respondents report that they have not received Singapore government support. Only 3% of sme respondents indicate that they have received assistance from the icv scheme.
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Perceptions of the U.S. Contribution to Singapore U.s. businesses have been present in Singapore throughout much of the city’s modern history.
The level of understanding and cooperation between local residents and foreign companies is a key determinant for the success of the companies’ investments. Our respondents’ feedback on their relations with the Singapore government and the community reveals the different ways in which their engagement is perceived by the government and the local citizens. In Your Perception, Is the U.S. Business Contribution to Singapore Valued by the Singapore Government/Citizens? 90%
80%
70%
69%
60%
50%
40%
37%
30% 21%
25%
23%
20% 9%
10% 2%
1% 1%
0% Yes; contributions are genuinely valued.
Yes; but contributions are taken for granted.
No; contributions are not valued.
Singapore Government
No; U.S. business presence is considered a negative.
Singapore Citizens
Singaporean citizens are likely not aware of U.S. contributions.
Note: Respondents were asked about their perception of the government and citizens in two separate questions. The option "Singaporean citizens are likely not aware of U.S. contributions" was only available in the question regarding citizens.
Companies responding to the survey overwhelmingly believe that the government values their presence in Singapore: 69% of the respondents indicate that the government genuinely values the contributions of u.s. business. In contrast, only 60% of respondents are confident that the u.s. business contribution is valued by Singaporean citizens, while 25% believe Singaporean citizens are not aware of the contributions American
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companies make on the local level. The discrepancy could be explained at least in part because government officials are more likely to understand which companies are and are not American as most companies do not use nationality in marketing. Another possible explanation relates to differing perceptions about the role and value of foreign labor as in direct competition with or as a supplement to the local talent pool.
Current Operational Challenges in Singapore
We asked respondents for their perspectives on their companies’ greatest operational challenges in Singapore.
What Are Your Company's Greatest Operational Challenges in Singapore?
Cost of Space in Singapore
64%
Recruiting Qualified Singaporeans
58%
The Cost of Human Resources in Singapore
49%
Difficulties Recruiting Staff with Sufficient Business Knowledge of the Region
31%
Insufficient Employee Productivity Relative to Salary
20%
Other
16%
0%
20%
40%
60%
80%
As multiple responses are allowed, the total percentage may exceed 100. Note:
Respondents point to Singapore’s limited physical size and relatively small population as factors underlying operational challenges. When asked to name their top three greatest operational challenges in Singapore, respondents put the cost of space (64%) at the top of the list. This perception is shared equally across industries and sectors. Manpower-related concerns came next. While recruiting qualified Singaporeans is the second most frequently cited operational challenge, smes report more difficulty than mncs, with only 56% of mncs identifying it as an issue as compared to 67% of smes. The manufacturing sector (58%) views recruiting qualified Singaporeans as a greater problem than the services sector (46%). A substantial proportion of respondents list the cost of human resources (49%) and difficul-
ties recruiting staff with knowledge of how to do business in the region (31%) as operational challenges. The fifth most common response also relates to cost, as 20% of respondents say that “insufficient employee productivity relative to salary” is among their greatest challenges. Some respondents provided write-in responses. Several indicate that “job-hopping” is another significant challenge. In a tight labor market, job-hopping creates problems given that firms have dedicated time and capital to training employees only to have them leave before the company begins to see the benefits of the training. Other write-in replies include the difficulty of securing working capital for smes from private lenders, the high cost of living in Singapore, and the country’s geographic distance from other high-potential regions such as North Asia.
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Recruitment from the Local Talent Pool
One of the key issues to consider before a firm decides to establish a presence in any country is whether it will be able to hire qualified talent from the local workforce to staff its operations. The well-educated and largely English-speaking workforce in Singapore plays a role in the nation’s attractiveness as a destination for foreign direct investment. We asked respondents how easy it is for them to hire local workers. In addition, we asked them for feedback on the skills that their companies require. How Confident Are You That You Can Recruit Qualified Singaporeans to Fill the Following Roles? 100%
90%
4%
14%
4%
6%
19% 18%
80%
70%
8%
9%
26%
36%
28%
60% 26%
50%
46%
48%
40%
37%
30% 54% 20%
39% 28%
29% 21%
10%
0% Entry Level Confident
Low Skill Level Somewhat Confident
Technical Not Confident
A that they majority of respondents are confident will be able to attract qualified Singaporeans for entry-level positions, but confidence decreases as the positions increase in seniority and/or skilllevel. For senior management positions, 37% of respondents feel somewhat confident in their ability to recruit Singaporeans to fill vacancies in the management teams, and 36% do not feel
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Middle Management Senior Management Do Not Know
confident about it at all. While recruiting senior management is often difficult in any tight labor market, the concentration of headquarters, r&d, and intellectual property-intensive functions here may mean that American businesses have a disproportionate demand for higher-skilled, more senior personnel.
Â
As You Recruit Singaporean Executives/Managers, Which Skills Are in the Shortest Supply?
Strategic Thinking/Devising Creative Solutions to Complex Business Plans
73%
International Experience/Global Outlook
56%
Demonstrated Leadership/Management Capabilties
54%
Business Planning and Management Skills
20%
Clear Track Record of Successful Execution
18%
Other Technical Business Skills
14%
0%
Â
20%
40%
60%
80%
Â
Note: As multiple responses are allowed, the total percentage may exceed 100.
Respondents seek to hire more employees with the ability to think strategically and/or devise creative solutions to complex business problems and who have international experience and a global outlook. For the international experience/ global outlook characteristic, this bent is more pronounced in the manufacturing industry than
in the services industry, with 68% of respondents from manufacturing putting these qualities first compared to only 51% of respondents from services. Over half of the respondents also state that they would like to recruit more employees who demonstrate leadership or management capabilities.
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Selected Insights: Creativity and Flexibiity:
“We look for talents that are creative thinkers, can manage ambiguity, have experience in more than one market, can lead from the front, have an opinion and can debate.” Make Mistakes:
“We look to develop the skills of our managers/executives – the focus is on management and leadership skills…. It is okay to make mistakes. It is what you learn from that which is key.” How Has the Availability of Key Skills/Attributes Changed in the Singaporean Candidate Pool in the Last Five Years? Improvement
54%
No Change
23%
Decline
16%
Do Not Know
7% 0%
10%
20%
The majority of survey respondents believe that
there has been an improvement in the availabili-
ty of key skills and attributes in the Singaporean talent pool. mncs are slightly more positive on
30%
40%
50%
60%
this question than smes, with 55% of mncs indicating that there has been an improvement in the candidate pool within the past five years as compared to 47% of smes.
Feedback on Key Domestic and Regional Issues
Respondents applaud the supportive and forward-oriented nature of Singapore’s business environment, and offer suggestions for maintaining its leading edge. We asked survey participants what they think Singapore’s domestic and regional policy priorities should be.
Top Priority Domestic Policy Issues 70%
65%
60%
60% 50%
39%
40% 30% 20% 10% 0%
Invest in Local Talent Focusing on Cooperate to Identify Ways to Lower Invest in Attracting More Foreign Talent Leadership Capabilities, Relevant the Cost of Doing Business in/from Recognizing the Local Talent Pool is Business Experience, and Qualifications Singapore Finite
Note: As multiple responses are allowed, the total percentage may exceed 100.
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Among domestic policy issues in Singapore, AmCham members’ primary concern relates to continued development of the talent pool: 65% of respondents indicate that investing in local talent focusing on leadership capabilities, relevant business experience, and qualifications should be a policy priority. Companies are almost equally concerned about
the rising cost of doing business in Singapore. 60% of respondents hope to have the chance to cooperate with the Singapore government to search for ways to reduce the cost of doing business. The cost issue is particularly important to the manufacturing sector, where 73% of respondents list it as an important concern compared to 55% of respondents in the services sector.
Top Regional Policy Issues 70%
60%
60%
50% 44% 40%
39% 35%
33%
30%
26%
20%
10%
0%
Support Regulatory Support Address Regional Invest in Regional Strengthen Rule of Harmonization Multilateral Trade Corruption Infrastructure Law Within ASEAN Liberalization
Address Environmental Concerns
Note: As multiple responses are allowed, the total percentage may exceed 100.
On the regional front, the results of our survey indicate that the issues of greatest interest to the American business community require coordination among the various governments of Southeast Asia. The majority of respondents agree that regulatory harmonization within asean (60%) and multilateral trade
liberalization (44%) are top priorities. Respondents also indicate in their write-in responses that cross-border tax issues and finding skilled talent to staff regional operations are also of concern, and that Singapore should continue to play a leadership role in the region to drive policies that will create business opportunities.
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Stretch Your Boundaries with Accenture Lay Lim Teo, Senior Managing Director – Singapore & ASEAN
Accenture positions itself at the intersection of business and technology. Whether it is strategy, digital, technology, or operations, Accenture drives value by helping to shape new businesses, designing operating models for the future, and harnessing technology to help clients innovate and become high performers.
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ccenture’s country head Lay Lim Teo talked about Accenture’s growth here in Singapore, and its role in helping Singapore become a world leader in diverse areas. “We are celebrating Accenture’s 40th year in Singapore in 2015, having been incorporated in 1975. One of our most memorable experiences here was helping to modernize Singapore’s tax administration including pioneering the extensive use of image processing technology, back when it was located at what is now the Fullerton Hotel.” “We are exceptionally proud of the opportu-
nities we have had to work together with companies and the government to transform the way Singapore works and lives, and to help enable Singapore to become one of the leading e-Governments in the world.” “We started as a management and technology consulting firm serving mncs and local organizations across diverse industries. And in the last 40 years Accenture in Singapore has grown in scale and scope, and stayed relevant to the clients that we serve.” Lay Lim continued, “Unlike many American
Accenture employees at its annual International Women’s Day celebrations.
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companies, Accenture does not have a formal to help them do that.” Asia-Pacific headquarters in Singapore — or “Our borderless dna also enables us to bring regional headquarters anywhere else. We op- the best digital thinking and digital technologies erate as a truly global organization and deliv- to the fore, which is fast becoming an essential er a seamless employee and client experience driver of growth and enterprise transformation, that enables us to serve our clients in any part no longer just an enabler of change. Businesses of the world.” Its global leadership is based are fast placing these at the center of growth in different cities across North America and strategies, from tailoring customer experiences Europe. And Accenture operates a global de- at scale in rapidly changing markets, to driving livery network that enables it to ‘follow the sun,’ new approaches to recruitment and talent manin order to serve client needs round the clock. agement. This is especially relevant in asean However, Lay Lim noted, “This capability is also where 100 million new asean consumers will well-complemented by local country teams who understand the nuances of their business Now you have ASEAN, Chinese, and and culture and are Indian companies coming here and able to bring that to bear in client relawanting to use Singapore as a launch tionships.” pad to create global companies. It is this very quality that proved to be the secret sauce for the business in the asean region. “asean is becoming more integrated add us$770 billion in new spending to the econas a region and a community, yet the richness omy over the next few years,” said Lay Lim. And of its culture and complexities should not be Accenture is well placed to help clients imagine, underestimated. Accenture has been able to tap test, and pilot transformational opportunities both local expertise and the deep experience of presented by the digital world, bringing the a global firm to bring the best of Accenture to a once separate worlds of business strategy and growing portfolio of clients.” She expects that technology strategy together and taking techthe company’s borderless dna will continue to nology well beyond the remit of the cio. be an advantage. Looking forward, Lay Lim sees that Singapore “That dna positions us very well for two things. will continue to be important for Accenture As our clients grow and scale, we are perfectly because of the appetite for innovation. “We have had the privilege of working with both positioned to serve their changing needs. I see a growing number of companies from this part government and local organizations here to help of the world who have aspirations to become transform their operations and create value by global brands and global players.” looking at them through a different lens.” While In the past, global clients wanted to develop Accenture has different innovation centers here, and use Singapore as a gateway to Asia. Lay it is the ability of these centers to plug the innoLim explained, “Now I think the reverse flow vativeness of Singapore into Accenture’s global is true. Now you have asean, Chinese, and network that creates a lasting advantage.” Lay Indian companies coming here and wanting to Lim emphasized, “Singapore is not just the home use Singapore as a launch pad to create global of an r&d lab; our view in Singapore is that companies. And Accenture is well positioned the lab is part of the global ecosystem.”
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Loving It at McDonald’s An interview with Dave Hoffmann, President of Asia Pacific, Middle East, and Africa (APMEA)
D
As the world’s largest quick-service restaurant chain, the McDonald’s Corporation operates over 36,000 McDonald’s restaurants in more than 100 countries, serving 69 million people a day on average. Singapore landed on the McDonald’s map in 1979 when the company opened its first outlet here and broke worldwide records (at the time) for the most McDonald’s hamburgers sold on an opening day. Today, around 8,000 employees in over 120 McDonald’s restaurants across the island serve six million customers each month.
ave talked about how McDonald’s uses its Singapore location. “Others have not had quite the success of getting the talent that we have, and it could be the nature of the industry.” It is that talent in particular that McDonald’s has done a great job of cultivating, having received the Best Employer Award from aon Hewitt. “McDonald’s Singapore has received this recognition multiple times over the past years,” mentioned Dave. McDonald’s has also excelled at providing its Singaporean employees with paths to leadership roles. Dave noted, “We’ve got a lot of
The Ronald McDonald House at the National University Hospital provides a ‘home away from home’ for families, bringing them closer to their hospitalized children.
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great Singapore talent that we’ve exported to other places, like Kenneth Chan who heads our China operations and just won an award for the top Singaporean ceo outside of Singapore in 2014. Kenneth is currently the most senior Asian leader in the organization. His ability to lead a large business with a strong vision for sustainable growth, his passion for the brand, his ability to marshal significant resources and channel them towards the right focus areas, and his ability to energize and grow the organization make him an outstanding overseas ceo and a proud son of Singapore.” Singapore is a great market for McDonald’s because the country and the company share similar characteristics, such as the pursuit of doing things better, innovating, and setting trends. McDonald’s also works to bring happiness to those who might need it slightly more than others. Since 1989, Ronald McDonald House Charities Singapore has disbursed over s$6 million to more than 900 sick, needy children. “We are really proud of Ronald McDonald House Charities. We love to be able to work with the doctors, and we’ve got a great partnership with the National University Hospital. That’s how we give back to the communities we serve.”
Overall, while the revenue from Singapore and customize a burger with premium ingrediis but a small part of the McDonald’s portfolio, ents to match their moods. “We’re constantly it is a vital part of the business. Singapore is a innovating to create a better brand experience market leader and when ideas work in Singapore, for our customers. We want to be relevant to our success elsewhere often follows. Dave elaborat- customers’ modern lifestyles and to exceed their ed, “From the brand perception and influence expectations,” added Dave. Time will tell if this menu innovation becomes another runaway hit standpoint, it’s highly influential.” Over the years, McDonald’s has created for McDonald’s, but history is certainly on the unique promotions geared to Singapore’s trend company’s side. setting population. Singaporeans flocked to the “We feel privileged to be a brand that many restaurants in 2000 during the “Hello Kitty craze” and Others have not had quite the success when McDonald’s brought back the of getting the talent that we have, and it toys last year, it could be the nature of the industry. made the promotion even better by allowing customers to buy the collectibles both in its restaurants Singaporeans have grown up with over the and on its website, allowing even more people past 36 years. Our customers have told us that to access them. McDonald’s has often featured in some special As McDonald’s celebrates its 60th anniversary moment of their lives. At the end of the day, globally, it has launched a new menu custom- having that special place in the hearts and minds ization platform called ‘Create your Taste’ in of our customers and the community is what Singapore which lets customers become the chef matters most to us.”
Ronald McDonald House Charities Singapore creates and supports programs that directly improve the health and well-being of children.
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Connecting Consumers with Visa An interview with Ooi Huey Tyng, Country Manager, Singapore & Brunei
Visa is a global payments technology company that connects consumers, businesses, banks, and governments in more than 200 countries and territories worldwide. Visa Inc.'s headquarters are in the San Francisco Bay area, and it has nearly 10,000 employees around the world. Visa has built one of the world's most advanced processing networks, capable of handling more than 56,000 transactions per second reliably, conveniently, and securely. In 2014, its global network processed 64.9 billion total transactions worth US$7.3 trillion in total volume. Visa’s global aspiration is to allow consumers to use electronic payments safely and securely anytime and anywhere.
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ccording to Ooi Huey Tyng, Visa Country Manager for Singapore and Brunei, “Visa has been operating in Singapore since 1981, bringing world class capabilities in electronic payments to the market. With its rapid growth, openness and pro-business environment, Singapore has become one of Visa’s most important markets in Asia-Pacific. For a u.s-based multinational, Singapore is a fantastic place to be in.”
consumption expenditure as a proportion of Gross Domestic Product (gdp) (more than 60%); Singaporeans are tech-savvy and early adopters of new technologies; and the government is committed to expanding innovation and creating new business opportunities.” A significant group of Singapore’s community is the affluent. Singapore’s gdp per capita of more than us$55,000 is one of the highest in the world. “The first Visa Infinite Visa is especially excited about program for affluent customers the future of digital payments in was launched in Singapore. We also see Singapore as an Singapore in 2003. important test bed for innovation in Over the years, the Visa Infinite brand the future and want to help the nation has become synonyrealize its vision of becoming a regional mous with affluence, leader in innovation. sophistication, and exclusivity so all of “Three specific aspects of the Singapore mar- our bank issuers in Singapore offer Visa Infinite ket make it a fantastic place to do business,” to their high-end customers,” Tyng emphasized. highlighted Tyng. “Singapore has high personal Internet penetration in Singapore exceeds most
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of its Asian neighbors at 81% compared to the research shows that m-commerce will overtake Asia-Pacific average of 36% and also has one e-commerce in Singapore by 2016. We believe in of the highest rates of smartphone ownership the importance of an open innovation platform, in Asia at 85%. where we work with our banks, merchants, and “The Singapore government has an ambitious other technology partners to co-develop new roadmap for becoming a smart nation in 10 years products and services to keep pace the rapid and is committed to accelerating the move to evolution of technology.” a cashless economy. Visa is especially excited Visa is strongly committed to giving back to about the future of digital payments in Singapore. the community. In June 2015 as part of its contriWe also see Singapore as an important test bed bution to sg50, Visa partnered with ocbc Bank, for innovation in the future and want to help the ntuc Link, ntuc FairPrice, and non-profit nation realize its vision of becoming a regional organization, Food from the Heart, to support 500 less privileged families and paid for their leader in innovation,” said Tyng. Visa is driving the future of payments with a num- purchases at the supermarket to meet their baber of big innovations, including proximity (face sic needs. “It was a great opportunity to do something for other Singaporeans and those to face) payments through Visa payWave; remote (online) payments through Visa Checkout; peer-to- less fortunate than ourselves,” commented Tyng. peer payments through Visa Direct; and enabling As a u.s. multinational, Visa has the benefit digital payments through Visa Token Service. of being both global and local at the same time. “Singapore is one of the first major markets to “We are able to bring the best of our international embrace Visa payWave. With 30% of all Visa knowledge and experience to the Singapore marcard transactions in Singapore now contactless, ket,” Tyng highlighted. “Our clients, partners, Singapore is at the cutting edge of payments and the Singapore government often ask what innovation. In Singapore supermarkets, two in is happening outside of Singapore so that they three Visa transactions are on Visa payWave can learn about the latest developments and best so consumers are clearly choosing conveni- practices we see across other markets to ensure ence coupled with security,” said Tyng. “We are that Singapore can become one the best.” ready for Visa payWave to move to payments “We are committed to Singapore for the longvia mobile devices in advanced markets. The term,” said Tyng. “Where we are right now, it extension from cards to smartphones is a natural is a great place to be,” she added. progression – given the infrastructure is already in place, with mobile proximity payments using the same technology as contactless cards.” In the future, Visa plans to collaborate with others in Singapore to help drive the nation’s productivity agenda through its digital offerings. “Visa is making tremendous investment in promoting electronic payments for low value purchases – from food courts to public transport and convenience stores, where cash is still king. Cash actually costs time and money for small businesses and consumers, which can be better spent on driving real business outcomes,” she added. E-commerce in Singapore is also booming. “Recently, we have seen a tremendous growth in e-commerce where the year-on-year growth of payments volume has tripled that of face-toVisa Country Manager for Singapore and Brunei, Ooi Huey Tyng (first row: fourth from left), with Singapore face transactions as of March 2015. In fact, Visa Country Planning team made up of 13 nationalities − a truly inclusive and fun culture at Visa.
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Mondelēz, C reating Delicious Moments of Joy An interview with Tim Cofer, Executive Vice President and President of Asia Pacific and Eastern Europe, Middle East & Africa (EEMEA)
Mondelēz International is a lot like Singapore—relatively young but with a long and proud history in Asia. Although the Mondelēz name has only been around for two years, it has had operations in the region for over 100 years, bringing delicious moments of joy to consumers with brands like Oreo, Cadbury Dairy Milk, Choclairs, and Vegemite. As the world’s leading snacking company, Mondelēz is constantly developing new products to respond to the unique tastes and preferences of Asian consumers.
“S
ingapore has been the heart of our Asian business in more recent times. We’ve had a cocoa processing plant in Jurong for more than 30 years and a regional hub for Southeast Asia here since 1996. In 2005, we moved our Asia Pacific Headquarters from
Melbourne, Australia to Singapore and our team here now leads the way for over 20,000 employees across the region,” said Tim. “Singapore thrives on innovation and its cultural diversity has made it a regional trend-setter. We often choose to launch products here knowing that
Students from the National University of Singapore (NUS) enjoying the different fun-filled flavors of Cadbury Dairy Milk during its launch in Singapore in 2014.
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success in Singapore is a useful indicator for sophisticated consumers, looking for new and success elsewhere. Our latest launch is a great innovative products, particularly when it comes example, combining two of our iconic brands— to snacks. Of course we need to invest if we Cadbury Dairy Milk and Oreo cookies—in a are going to be able to make the most of the delicious new chocolate bar. And we kicked off opportunities we see in the region. We recentthe campaign right here in Singapore.” ly announced a us$370 million investment to “Singapore has a unique position in Asia. It acquire Vietnam’s number one cookie, cake, combines all the diversity and excitement of this Singapore has a unique position in fast-paced and exAsia. It combines all the diversity and citing region with a strong economy, excitement of this fast-paced and first class infraexciting region with a strong economy, structure, and politfirst class infrastructure, and political ical stability. As an investor, those are stability. As an investor, those are the the things that give things that give me confidence. me confidence.” “There is no doubt Singapore benefits from its unique geographic location, with easy and confectionery business, Kinh Do, which access to the fast-growing asean markets, will significantly increase our presence in this while still being convenient for places further dynamic and fast-growing market. We’ve also afield like India, China, and Australia where we broken ground on two new state-of-the-art fachave thriving businesses. But it’s not just the luck tories to make cookies in China and chocolate in of location. Investment in the city has created a India that together will involve a further us$300 vibrant social and cultural hub for Singaporeans million of investment. With this kind of comand international visitors. That makes it easy to mitment we’re confident over the next few years attract and retain the talent we need to grow in the Asia-Pacific region can be the growth engine of Mondelēz International. And, of course, as the region.” Tim added, “In all markets where we operate, we’re faced with policies and reg- home to our regional hq, Singapore is right at ulations that affect how we do business. What the heart of it all.” differentiates Singapore is the openness of its government to collaborate and have a dialogue with those impacted by these policies, including businesses like ours. This transparent approach provides a win-win situation for everyone and benefits Singapore as a whole. A good example is the Singapore Code of Advertising Principles, which was co-created with the food industry, government, and voluntary organizations to develop guidelines on advertising to children.” In addition to the transparent regulatory environment that Singapore offers, it is also situated in a tremendous growth area. “Asia is an Play with Oreo went live in Singapore in April 2015, exciting place to be,” said Tim. “It is home to hitting the streets of Orchard Road and heartland 60% of the world’s population—increasingly areas. Passers-by played mini games and had a chance to try the new Oreo Coconut Delight.
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Building Global Alliances with United Airlines An interview with Laurence Chin, Country Manager Singapore & Offline Sales
United Airlines’ rich history in aviation traces its roots back to a 1926 flight when it carried airmail from Washington to Nevada. That flight by Walter T. Varney in a small Swallow biplane was the birth of United and the beginning of commercial flight. More than 80 years later, in 2010, United merged with Continental Airlines, creating a comprehensive global route network, operating 5,000 flights a day to 373 destinations in every continent. United is also one of five founding members of the Star Alliance Network, the first and largest global airline alliance.
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aurence Chin, United’s Country Manager Singapore & Offline Sales talked about how United views potential business. “We look at worldwide opportunities. We ask ourselves: Where can we best utilize our assets for a maximum return on our investment? Our objective must always be to grow our network to add value, to benefit our customers who fly with us. We grow our network continually but we grow it very carefully.” “United has been in Singapore since 1986 and our office in Singapore has some 59 employees
to anywhere in the United States! That is our strength—connectivity for our customers to the u.s. and vice versa. We also have a joint venture partnership with ana (All Nippon Airways) and together we have six flights out of Singapore operating in the mornings and evenings, which provides opportunities for business people traveling out of Singapore to the United States via Hong Kong and our Tokyo/Narita hub,” Laurence added. The travel industry in Singapore is a competitive one. Laurence proffered United’s strategy. “Singapore is a great place to be, with a lot of opportunities The Pacific region is the fastest and competition. Is that a difficulty?” growing, so this is where business asked Laurence. opportunities are highest. “No, there will always be challenges. Good businesses providing sales and operations services as well survive, bad ones don’t. For United, we provide as a reservation hub to agents and customers in the product, and we make sure that it is the state Singapore and Australia. Currently, we operate of the art for the customer, be it network, aircraft, two flights a day via Hong Kong and Tokyo to or technology. We don’t go overboard, we don’t do the unnecessary in order to differentiate, but the United States. We can pretty much fly you
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we do provide a product in which the customers find value, and are willing to pay an equitable price for it. The customer at the end of the day has the purchasing power, as it should be.” Looking ahead to opportunities in the region, Laurence pointed to the rising affluence and demographics. He said, “As you know, the Pacific region is the fastest growing, so this is where business opportunities are highest. This part of the world is doing well—at least in the foreseeable future.” Laurence also pointed to the successful outcome of the u.s.-Singapore fta. “The u.s.-Singapore fta, the first fta between the u.s. and an asean country, is the gold standard of ftas,” he said. “u.s. companies and AmCham were involved in consultations with the u.s. Embassy and the government about things u.s. businesses were concerned about. The negotiations turned out well and we have an fta that is phenomenally successful for both usa and Singapore.
If we can show what’s possible, that good trade agreements result in a win for all, our example could encourage other countries to join in similar trade pacts. More recently, we have the Trans-Pacific Partnership or tpp negotiations, a trade agreement involving many countries and folks are working towards that. Hopefully by the end of the year, the tpp will come about.” United also benefits from the strong ties between Singapore and the United States. “I strongly feel that the relationship Singapore has with the u.s. comes close to the special relationship that the u.s. has with the u.k. and Australia. It’s not a relationship based solely on politics, but on shared values such as transparency, rule of law, and security,” Laurence added. Ending the interview, he said: “Fundamentally, Singaporeans and Americans believe in meritocracy. Because there is equal opportunity for everyone, regardless of race, language or religion, we can succeed.”
Some of the employees from United Airlines in Singapore at Singapore Changi International Airport.
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Looking Ahead to 2025, Continuing to Strengthen the U.S.-Singapore Business Relationship Introduction The story of Singapore has been remarkable, and the city-state is determined to achieve still more. As the prospects for a fully-realized ASEAN economic community grow, Singapore will continue to be a dynamic and strategic market that operates as the gateway to Asia. This section examines companiesâ&#x20AC;&#x2122; future investment plans, provides their insights into future operational challenges, and investigates possible avenues for further enhancing the competitiveness of the local talent pool.
The integrated Singapore refinery and petrochemical complex is ExxonMobil's largest.
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Management Outlook
How will Singapore evolve in the decade to come, and what role do American businesses expect to play in such an evolution? Respondents were asked a series of questions aimed at finding out how they view their companiesâ&#x20AC;&#x2122; business prospects in the next 10 years. The outlook for investment in Singapore is very positive. Almost two-thirds of the respondents indicate that their companies will likely increase their levels of investment in Singapore. Conversely, only 6% say that they intend to divest from the country. Looking Ahead to 2025, How Will Your Company's Investment in Singapore Have Changed? 70%
61% 60%
50%
40% 33% 30%
20%
10% 6%
0% Additional Investment
About the Same
Divestment
Businesses that have had Singapore as a hub for less than five years lead all groups for expecting increased investment, with 74% indicating that they are planning to add to their investment here.
More than half of respondents from companies that have maintained a hub in Singapore for more than fifteen years say that their firms will continue to increase their investment in Singapore.
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Looking Ahead to 2025, How Will the Number of Employees Hired by Your Company in Singapore Have Changed? 100% 90% 80% 66%
70% 60% 50% 40%
26%
30% 20%
8%
10% 0% More Employees
About the Same
Looking ahead to 2025, two-thirds of our respondents indicate that their workforce in Singapore is likely to expand within the next
Fewer Employees
decade. Only 8% of companies expect to reduce the size of their workforce.
Looking Ahead to 2025, How Will the Percentage of Expatriates Hired by Your Company in Singapore Have Changed? 60% 52% 47%
50%
50%
46%
40%
36%
39%
30% 20% 12% 7%
10%
10%
0% About the Same Percentage of Expats Services
Manufacturing
Lower Percentage of Expats
Overall
At the same time, our respondents predict that the percentage of expatriates they hire will remain at current levels or decrease. Firms in the manufacturing sector foresee a slightly greater decrease in expatriate employment than firms
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Higher Percentage of Expats
in the services sector: 46% of them predict that they will be hiring a lower percentage of expatriates as compared to 36% of respondents in the services industry.
Looking Ahead to 2025, How Will the Number of Highly Skilled Technical Employees Hired by Your Company Have Changed? 70%
63%
60% 50%
50%
47%
47%
50%
37%
40% 30% 20% 10%
3%
2%
0% More Highly Skilled Technical Employees SMEs
MNCs
Roughly the Same Percentage
Fewer Highly Skilled Technical Employees
Overall
The overwhelming majority (97%) of respondents indicate that they intend to increase or maintain the number of highly skilled technical staff
employed by their companies. A higher proportion of mncs (50%) foresee additional employment of highly skilled employees than smes (37%).
Looking Ahead to 2025, How Will the Regional HQ of Your Company Have Changed? 80% 71% 70% 60% 50% 40% 30% 18%
20%
11% 10% 0% No Change to Regional HQ
Singapore to Become Regional HQ
In line with Singaporeâ&#x20AC;&#x2122;s ambitions to continue to grow as a hub for business and innovation, 18% of our respondents indicate that they expect to move their regional headquarters to Singapore. Almost 90% of respondents already
Move Regional HQ Out of Singapore
use Singapore as a regional hub for at least some business lines and the overwhelming majority of respondents indicate that there will be no change to their regional hq within the next decade.
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Challenges in the Next Decade
We asked respondents to provide their perspectives on the biggest challenges facing their organization in ten years. What Will Be the Biggest Challenges Facing Your Organization in 2025? 80% 70% 60% 50%
68%
55% 50%
40%
34%
32%
30% 21%
21%
20%
20%
10% 0% Cost of Doing Business: Material Prices/Availability Availability of Local Talent to Fill Leadership Positions Rising Competition From Other Economies in the Region Demographics of the Available Workforce Availability of Technically Qualified and Accredited Candidates Declining Economic Growth Rates in Singapore Declining Economic Growth Rates in the Region Changing Political Landscape in Singapore Leading to Uncertainty
Note: Because multiple responses are allowed, the total percentage may exceed 100%.
Over half of our respondents agree that the biggest challenges facing their organizations a decade from now will be the cost of doing business, shortage of local talent to fill leadership positions, and rising competition from other economies in the region. Respondents from the services sector are far more concerned than those from the manufacturing sector about declining growth rates in Singapore (27% as compared to 9%) and the demographics of the available workforce (36% versus 29% respectively). At the same time, respondents from the manufacturing sector are
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more concerned about the availability of technically qualified candidates: 44% indicate that this is a possible future challenge as compared to 27% of respondents in the services sector. Larger companies were considerably more concerned about the rising cost of doing business than small companies (70% as compared to 55%). Similarly, they were more concerned about the rising competition from other economies in the region (53% versus 38%) and availability of technically qualified candidates (33% as compared to 25%).
Productivity Focus
The Singapore government has recently launched a series of measures aimed at increasing productivity. We asked respondents to rate the likely importance of productivity measures to their organization in the next five years, as well as about the measures their firms plan to implement to raise productivity levels in their Singapore operations during that period. How Important Will Productivity Measures Be for Your Organization in the Next Five Years? 100% 52%
50%
38%
10% 0% Minimal Importance
Normal Importance
Utmost Importance
The overwhelming majority of respondents said that productivity measures will be of normal or the utmost importance to their organizations over the next five years. Respondents
from the services sector place a slightly higher importance on productivity measures than those from the manufacturing sector with 40% and 33% respectively selecting â&#x20AC;&#x153;utmost importance.â&#x20AC;?
How Does Your Organization Plan to Increase Productivity in Your Operations in Singapore in the Next Three to Five Years? 70% 60% 50% 40%
61% 45%
37%
34%
30%
20%
20%
17%
14%
13%
Minimize Waste
Relocate (some) Operations to a Lower Cost Country
10% 0%
Improve Skills Improve Develop New Introduce Restructure Reform of Employees Management and New the Performance Practices Innovative Technologies Organization Management Processes System
Note: As respondents were allowed to choose up to three responses, the total percentage may exceed 100.
We asked respondents who assigned normal or utmost importance to productivity gains to describe their plans to improve productivity levels in their local operations. Respondents across all industries indicate that they will seek to improve the skills of employees (61%) and their management practices (45%) to increase productivity in their Singapore operations. Over a third of companies are also likely to choose to develop new and innovative processes within their business model in order to in-
crease productivity. smes are less likely to opt for restructuring their organizations to improve productivity (12% versus 22% of mncs). About one-third of respondents from both the services and manufacturing sectors indicate that introducing new technologies into their operations will be a preferred solution for increasing productivity. A larger share of respondents from the manufacturing sector (22%) than from services (10%) cite minimizing waste.
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Supporting Local Talent
As Singapore continues on its upward trajectory, more local talent will be needed to fill rising demand for highly skilled staff. We asked respondents what strategies for meeting this demand they believe will be most effective and in what ways their companies are ready to contribute. What Steps Should the Singapore Government Take to Address Skills Gaps and/or Continue to Improve the Singapore Talent Pool? 60%
56%
50%
42%
40%
40%
40%
39% 29%
30% 20% 10% 0%
Expose Early & More Support for Rotate Public More Work-Based Include Mandatory Alter "Bonding" Mid-Career Talent Singaporean Sector Employees Learning Programs Internship in Requirements for to Senior Business Workers and Through Private Tertiary Education Government Leaders Families While Sector Roles Curriculum Scholarships Overseas
Note: As respondents were allowed to choose up to three responses, the total percentage may exceed 100.
The majority of respondents opt for exposing early- and mid-career talent to senior business leaders. Companies also suggest rotating public sector employees through private sector roles and more work-based learning programs. They would also like to see mandatory internships
included in tertiary education curricula. Mncs and smes differ on the priority of providing more support for Singaporean workers and their families while overseas; 45% of mncs support it, compared to only 28% of smes.
What Role Can AmCham Member Companies Play in These Issues? 70%
64%
61%
60%
51%
50% 40%
34%
30%
24%
20% 10% 0%
Offer Internships
Form Working Group to Advise MOE of Employer Needs
Provide Career Advice/Talks to Students/Classes
Provide Curriculum Provide Slots for 1-to-2 Advice Directly to Year Rotations Universities
Note: As multiple responses are allowed, the total percentage may exceed 100%.
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Numerous American firms like ibm, Procter to develop rounded technical skills & Gamble, and United Technologies have pro- and efficient management (fewest ductive partnerships with the government that layers) as efficiency in a finite introduce new expertise to Singaporeans. To resource location is key.” build skills and innovative capabilities, technol- Apprenticeships ogy firms such as Google, Dropbox, and Palantir “Reinforce and establish apprenticeships have sponsored hackathons to engage college stu- as an alternative career route and dents. McDonald’s Singapore offers a University support companies to take on apprentices Accredited Program that provides sponsorship for early vs. degree based development.” further education for its high-potential employees Demonstrate Improvement in Standard of at the managerial level. Citigroup has a partner- Living Due to Foreign Investment/Talent ship with the National University of Singapore “While access to foreign talent is required where it sponsors nus’s Design Thinking course for growth, the Government has to create and provides training in innovation to its staff. a situation where Singaporeans see Many American companies already have well their lives improving because of foreign developed internship programs. On an individ- investment and talent.” ual company level, respondents emphasize their willingness to offer internships to students (64%). Concluding Remarks More than half of our respondents express Singapore offers a superior platform for busia strong interest in participating in a working ness. Its policy environment, infrastructure, and group to advise the Ministry of Education (moe) high-quality human capital base are proven comon employer needs. Other ideas include provid- petitive advantages that help secure Singapore’s ing career advice to students (51%) and providing attractiveness as an investment destination. curriculum advice to universities (34%). As global competition rises and regional economies improve their performance, Singapore Selected Respondents’ Insights is looking ahead to transform its highly educated work force further through government Technological Innovation programs such as SkillsFuture. Enabling its “Invest in local talent focusing on workforce to meet future needs is also AmCham technology, technical and innovation members' top priority. As this report confirms, capability.” American firms will continue to be a reliable Realistic Information on Employer Needs partner in this endeavor. “Provide realistic information on the AmCham members have invested in their worknumbers, types, and skill levels required forces for decades and continue to do so. They for various jobs in different sectors with hire local talent, develop their professional skills, accurate wage information. This would and advance their career prospects. They provide help Singaporeans recognize potential their employees opportunities to gain experience skills/jobs and expectation gaps earlier.” working in affiliated offices overseas. The results are a clear win-win as seen in the numbers of Overseas Experience Singaporeans employed by American companies “Most candidates lack overseas experience and occupying senior positions with American and education…. Singaporeans should companies both at home and abroad. pursue overseas graduate education or American companies continue to evolve and early career jobs outside of Singapore. innovate alongside Singapore. The next 50 years Then come home to lead a sea regional or will undoubtedly bring challenges; Singapore is International role.” poised not just to overcome them, but to transBlue Collar Workers form them into springboards. American com“Invest in the highly skilled blue collar panies have been, are, and will continue to be worker… Success of the nation is there every step of the way.
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P&G, Reaching Consumers Every Day An interview with Sam Kim, Vice President, ASEAN & Asia Development Markets
Procter & Gamble (P&G) was named Singapore’s most attractive employer at the 2015 Randstad Awards and the consumer goods giant serves nearly five billion people around the world. With a product footprint in more than 180 countries and employing over 140 nationalities in more than 70 countries, P&G is touching consumers’ lives everywhere.
S
am Kim talked about p&g’s growth in Singapore. “As Singapore grew as a country, so did p&g where we set up our operations 27 years ago. From a local operation here, it quickly became a regional headquarters representing asean, Australia, and India. About nine years ago, we consolidated our operations and relocated our Asia headquarters to Singapore because we really recognized the strong pool
technology available here. We have been able to grow together, and the government has been a strong partner in helping us. So, this serves as the commercial headquarters for all of Asia. It also serves as our global headquarters for our Baby care and sk-ii business. At p&g, innovation is our life blood.” Sam elaborated, “It’s about looking towards the next decade, where Singapore is going in terms of its vision and how we are following. The decision to inWe have over 400 R&D employees, vest s$250 million and again this is where partnership to build an r&d facility in Biopolis with the Singapore government is is to facilitate destrong. We partner with A*STAR and velopment of suare able to leverage on the brightest perior products to improve consumer minds and talent in research and lives and what we development who work in Singapore. can do in the next 10 to 20 years, espeof diversity, the talent, and the value creation cially with the respect given to innovation and offered by the Singapore government. I think intellectual property. That is why pm Lee recit’s no different from the way that Singapore ognized p&g’s efforts in his 2013 National Day has grown. It’s an exceptional fit for us where rally speech. We are very proud of this spirit of we serve the consumers from all over the world. innovation and cooperation we have here. This Also, Singapore is strong in terms of the infra- is one of the most advanced sites in the world. structure and the affinity for innovation and We have over 400 r&d employees, and again
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this is where partnership with the Singapore government is strong. We partner with a*star and are able to leverage on the brightest minds and talent in research and development who work in Singapore.” “We also have manufacturing facilities here,” continued Sam. “People do not automatically think of Singapore as a manufacturing base, but in 2007, we established our first manufacturing facility in Asia for perfume. We manufacture the perfumes that go into products like hair care and detergents.” The Singapore plant plays a prominent role in supporting the company’s global perfume production requirement. “Another very important manufacturing site in Singapore is P&G's Purifier of Water plant. P&G is proud of our non-profit initiative, the Children’s Safe Drinking Water Program which produces water purification sachets to help clean contaminated water. This year marks p&g’s 10th anniversary of the program whereby globally we have provided over eight billion liters of clean water to families in need,” said Sam. “This comprehensive program forms an important part of our csr efforts, and the global manufacturing facility is located in Singapore. The water purification technology enables people to purify dirty water in a simple, affordable, and convenient way. So, this is life-saving technology. We decided to put the global manufacturing plant here in Singapore because from a logistics and safety standpoint, Singapore is the ideal location.” As the world’s largest consumer products company, p&g thinks that the future for the Asian market is bright. “Asia represents half of the world’s population, and represents a market opportunity of over us$100 billion. It’s also the market for the growing middle class, consumers for our products, the fast moving consumer goods. In addition to the demographics, there’s also technology, with mobile and smartphones, people are accessing information and becoming educated in products that were not previously possible. So I think Singapore is an inspiration for other markets.” About the workforce in Singapore, Sam added, “I think we need to continue to promote diversity, and the ability to have a diverse talent pool. Any
country operation is about growing local talent. And we have a reason for increasing local talent, because we want our employees to best reflect local consumer base. So in Singapore, we would want more Singaporeans in the organization to provide us with local insights and understanding to make better products and improve their lives, and this would be the same in Thailand with Thais or in the u.s. with Americans. Having said that, we also need to be able to attract a diverse talent pool in the organization in order to stimulate diverse thinking and creativity. p&g is very unique in that it grows its leadership from within the company. Yesterday was my 29th anniversary with p&g, and virtually all of our employees start as new hires, as I have done back in 1986. Obviously, when we need specialists, we hire from outside.” On the subject of leadership, p&g is committed to supporting smes which are the growth engine of the asean economy. For asean’s long term development and prosperity, as well as for the success of the asean Economic Community, it is critical that smes in asean are able to take advantage of opportunities, compete on a level playing field, and accelerate growth. p&g is proud to partner with the us asean Business Council (usabc) and the u.s. Agency for International Development (usaid) in developing a landmark business alliance to boost competitiveness of smes in the region. Sam shared, “We are particularly delighted that p&g has an opportunity to share some of its globally admired and awarded leadership development practices through a series of ‘p&g Leadership Colleges’ for smes. We are delighted to inaugurate the first of these in Singapore last year with the support and partnership of spring Singapore, and we look forward to hosting more such colleges around asean.”
Opening of the P&G Leadership College for SMEs in Singapore
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Microsoft Makes Real Impact for a Better Singapore An Interview with Jessica Tan, Managing Director, Singapore
In August 2015, Singapore won’t be the only one celebrating a birthday, as Microsoft celebrates 25 years of driving innovation and growth here in Singapore. The worldwide leader in software, services, devices, and solutions started its Singapore office with only two employees in 1990 and has since expanded its footprint in Singapore to reach a team of over 900 employees that represent global, regional, and country operations and an ecosystem of over 2,000 business partners.
M
A key focus for Microsoft has been to empower our youth with next-generation skills, and that includes developing computational thinking as a national capability. Here, a Microsoft employee teaches a boy how to code using Kodu games programming at a YouthSpark Kids Camp in Singapore.
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icrosoft’s investment of over s$4.7 billion here has allowed it to be an active partner in nation-building in Singapore, and if you ask Jessica Tan, Managing Director for Microsoft Singapore, this leader in technology’s most important investment in Singapore has been building and nurturing ecosystems that allow start-ups and smaller businesses to reach their full potential. “Over 80,000 jobs were created related to the Microsoft ecosystem and Microsoft partners and related it organizations employ an estimated 47% of the total it workforce in Singapore,” explained Jessica. “What is really central to Microsoft as a company in every country we operate in, including Singapore, is that our belief and our mission is centered on enabling people and organizations to realize their full potential. Our focus is on really helping organizations and individuals achieve more, be more.” And Microsoft has the success stories to back this up. Through its BizSpark program, Microsoft has supported supported close to 1,300 local local start-ups by providing free access to technology, business mentoring, market visibility, and a collaborative community. In 2009,
the Microsoft Innovation Centre was also es- ables youths to succeed in today’s economy tablished in Singapore, co-funded by spring and build the economy of the future through direct access to technology and relevant skills. Singapore, to develop programs to nurture and mentor smes with the unique proposition of A key approach has been to enhance Singapore’s technological know-how. world-class education by encouraging the use “An example of a BizSpark alumni who has of technology to enable innovative pedagogical grown from an organization with a staff strength methods of teaching and learning. Through the of less than five to over 400 spread across Asia company’s YouthSpark program, youths are Pacific is aZaaS. In their early days, we en- also empowered with access to technology and abled aZaaS with the technological expertise to get onto the cloud, and Our belief and our mission is centered thereafter helped them to go-to-maron enabling people and organizations ket by connecting to realize their full potential. Our focus them to Microsoft’s customers. Today, is on really helping organizations and they provide innoindividuals achieve more, be more. vative cloud solutions to both public sector and enterprise customers by building on Microsoft’s Azure,” said Jessica. a better education, inspiring them to reimagine “Another success story is HueLab, a leading the opportunities they have to realize their polearning software development specialist, who tential and help them find a job or start their had humble beginnings but is today delivering own business. next-generation learning experiences through “A program we operate is called DigiGirlz the innovative use of technology to schools in where we engage with young female students to inspire them to explore careers in technologies. Asia, Europe, and the usa.” The technology giant sees its long-term future One of the unique challenges we have with this in Singapore, and Microsoft believes one of its labor market is that there are not enough people most profitable investments in Singapore is its in it, especially females. In terms of university graduates the girls outnumber the boys but they human capital. “Because of how developed and dynamic this either do not remain in the workforce or they market is, things do move very fast. There are are not in technology. So we asked women in upsides and downsides to this. The growth we technology to spend time and share with these see in the region motivates us to scale fast. At students, as young as primary school-going, the the same time, accelerated growth causes the opportunities in the industry and how what they talent market to be very tight. Therefore the do are creating positive impact in the commuability to tap into that talent base and be able to nity,” said Jessica. scale quickly is always challenging because it’s By being at the forefront of addressing the an extremely competitive market,” said Jessica. gender and diversity gap in the technology This is one reason why one of Microsoft’s industry, Microsoft is betting that a more dipriorities in Singapore is to ensure sustainable verse workforce is a more innovative workforce. talent for the diverse economy that businesses What better ecosystem to test this theory than operate in today. In partnership with educa- Singapore? tors, governments, and leaders, Microsoft en-
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Fostering Thriving Communities with Starbucks An interview with Jane Lau, Managing Director, Singapore
J
From its first store in Seattle’s Pike Place Market in 1971, Starbucks has grown to more than 22,000 stores in 66 countries. Starbucks has clear growth goals for the China and Asia-Pacific (CAP) region, aiming to be the employer of choice in its line of business and a leader in coffee. The first Starbucks store opened in Liat Tower on Orchard Road in 1996. Right from the beginning, Starbucks Singapore has committed itself to being a different kind of company.
have been partners with them for over a decade.” Jane discussed how Starbucks incorporated this relationship into its landmark 100th store in Singapore. “Apart from the 100th store as a key milestone for the company, it’s also significant because it marks a decade that we have worked with arc,” said Jane. “We have partnered with them since 2005 and we were also working with the Pathlight School under the arc. We Starbucks is a people business, and worked with them to open a training we are delivering the Starbucks café in the school, experience everyday with more and trained the stuthan 1,000 partners on the floor. dents within that facility. Last year, six So for us, what’s most important clients from arc is that we are constantly thinking started working in about how to develop those people our 100th store. We re-scoped the job so they can become leaders, not role for these six only in the company, but also in partners and started their families and communities. training them about nine months before, so that they could a long-term basis, and two in particular that integrate well into our environment.” we are very proud of are the Autistic Research There are challenges in any market and inCenter (arc) and The Salvation Army, where we dustry, especially when operating in a different ane explained what this means to Starbucks, “When we say a different kind of company, we mean a company that wants to contribute back to society in a positive way. Of course it has to be aligned with our values. I am proud to say that we are doing that successfully in Singapore for the past 19 years. We have been partnering with a number of organizations on
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country. “For us, it’s very simple. We want to be focused on building, sustaining, and earning the trust from the people of Singapore. Starbucks is a people business, and we are delivering the Starbucks experience everyday with more than 1,000 partners on the floor. So for us, what’s most important is that we are constantly thinking about how to develop those people so they can become leaders, not only in the company, but also in their families and communities.” Jane is happy that Starbucks is operating well in Singapore, “Singapore has its own set of challenges, but we have to be able to manage the operating environment. Because, at the end of the day, you can’t expect the external environment to adapt to your way.” And Starbucks is certainly well versed in operating in Asia. “Geographically, we define Singapore as part of
the cap region, with Hong Kong as our regional headquarters. Our Singapore operations are pretty independent, though, and we operate the 113 stores here as an individual unit,” said Jane. 2015 is the fourth year that Jane has been running Singapore operations. “I was amazed at how efficient and transparent the government is. They have been extremely supportive in terms of business. We have an ongoing dialogue with them on how to improve productivity, and to experiment using different technologies to help the business. We believe the Singapore government has been fantastic in reaching out to businesses. Most importantly, businesses should continue to have open dialogues with the government.” Stepping into 2016 and its 20th year in Singapore, Starbucks will continue to serve both customers and the community.
Denise Phua, President of ARC Singapore, speaks to Starbucks partners at the Starbucks Singapore 100th store opening at the Fullerton Waterboat House.
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Creating Unparalleled Experiences with Marina Bay Sands An interview with George Tanasijevich, President and Chief Executive Officer
Marina Bay Sands (MBS) celebrates its 5th Anniversary in Singapore this year and is the result of Singapore’s forward- thinking, historical decision to introduce integrated resorts. MBS has been active in Singapore since 2005, when its parent company Las Vegas Sands began its successful bid to develop an integrated resort at Marina Bay. The business of large-scale, MICE-focused Integrated Resorts involves designing, building, and operating resorts that offer hotels, restaurants, malls, theaters, museums, attractions, convention facilities, and casinos in iconic developments. Today, Las Vegas Sands is the world’s most valuable integrated resorts company based on market capitalization and Marina Bay Sands is the most successful integrated resort in the world in as measured by EBITDA.
“A
l though our parent company is headquartered in America, we have made great effort to become a local company,” said George. “Our procurement practices promote the creation and growth of many home-grown firms. In 2014, for example, we awarded 90%,
or more than s$720 million, of our procurement contracts to Singapore-based companies. Our team members raise millions of dollars each year for local charities through our annual Sands for Singapore festival. This is our unique corporate social responsibility program where we
Marina Bay Sands and the skyline of Singapore.
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leverage our property for fund-raising for local have plans to continue to reinvest and reinvigbeneficiaries.” orate all elements of Marina Bay Sands on a Besides creating unparalleled experiences for continual basis. To do so, we gather and anaguests, mbs itself has also experienced moments lyze customer feedback through various means to remember. George noted, “We continue to to guide our planning and programming. We experience memorable moments on an ongoing proactively manage our operations and continbasis at Marina Bay Sands. Certainly, the day we ually look for ways to upgrade and improve our were announced as the winner of the bid to build business and leisure amenities and attractions. Marina Bay Sands on May 26, 2006, was very Examples of recent enhancements of Marina exciting. During construction, the completion of Bay Sands include the ongoing redesign and the Sky Park represented a significant milestone. refurbishment of all of our hotel rooms, the In addition, the adrenalin was high on April 27, development of additional retail flagship luxury 2010, as we opened our doors to the public for the stores in our mall, the curation of unique exhifirst time and got to witness peoples’ reaction bitions, and the introduction of new celebrity chef restaurants.” to our many years of effort. Once we became In its quest to continue to adapt and attract cusoperational, the memorable moments began to rapidly occur. Welcoming Mr. Lee Kuan Yew tomers, mbs finds strength in its coordination to the property was always a true honor and a real highAlthough our parent company is light of my career. headquartered in America, we have Raising millions made great effort to become a local of dollars for charities has been truly company. Our procurement practices gratifying, and our promote the creation and growth of memorable mice and entertainment many home-grown firms. In 2014, for events are too nuexample, we awarded 90%, or more merous to mention.” than S$720 million, of our procurement While mbs’ success today appears contracts to Singapore-based companies. to have always been inevitable, Las Vegas Sands carefully researched the pro- with the Singapore government. “The governject proposal before bidding. George added, “We ment has devised a comprehensive tourism plan were initially attracted to Singapore because of that is not static, but is multi-dimensional and the commercial opportunity offered by the gov- responds well to changes in environmental and ernment and Singapore’s reputation for integrity market factors,” George said. Looking ahead, and track record as a top location for long-term Las Vegas Sands will also continue to analyze investment. Given our experience, we are eager market opportunities in the region. “Future deto increase our investment in Singapore. In velopment opportunities will be evaluated on the meantime, we look for other opportunities a case by case basis. Our ambition would be to develop large-scale, mice-focused integrated to expand the business of Las Vegas Sands in markets outside of Singapore where we can resorts in major metropolitan cities with well-decreate value for our shareholders.” veloped tourism and transportation infrastrucAlthough mbs is only five years old, in the ture.” While those properties remain to be seen, fast-moving integrated resorts industry, it pays Marina Bay Sands has changed the skyline and to continue to innovate. George explained, “We the nation of Singapore forever.
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C ognita on Teaching Excellence An interview with Brian Rogove, Chief Executive Officer, Asia Pacific
Cognita is the leading global provider of private education in K-12, delivering a wide range of curricula such as the International Baccalaureate (IB) as well as the national curricula of various leading education markets. Since its founding in 2004, there are now 66 schools across Europe, Latin America and Asia, including Stamford American International School and the Australian International School in Singapore.
“C
ognita started our Asia operations here in Singapore back in October 2007, with the acquisition of the Australian International School (ais). We immediately invested in brand new Junior School facilities in 2008 and again in a new Senior School in 2010. ais now provides a high quality educa-
years old in Nursery to High School. We have seen demand grow across Asia for an American curriculum with the International Baccalaureate Diploma, driven by students looking to matriculate to American universities.” Brian added, “We ensure our schools have the very best teachers recruited globally all year round. In Asia alone we have over 1,500 employees with Singapore as the Cognita won the first Request for regional hq.” Information for foreign schools Brian discussed by the Singapore government. We why Singapore was a natural choice as designed and built Stamford American Cognita’s education International School, which opened hub for the region. “For me, I probably in August 2009 and now has over spend 80% of my 2,400 students from two years old time on a plane in Nursery to High School. and I love getting off the plane at 9 or 10 o’clock on a tion to over 2,500 students. In November 2008, Friday night and being home in 30 minutes. Cognita won the first Request for Information Everything works. There is the ease of doing for foreign schools by the Singapore govern- business, transparency, business opportunities, ment. We designed and built Stamford American and for us it has a halo effect for the rest of the International School, which opened in August region. Other countries in the region improve 2009 and now has over 2,400 students from two because they strive to achieve what Singapore
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has achieved. Singapore is something of a role model for the region.” One of Brian’s most memorable moments has been the launch of the Global Mentor Program at Stamford giving students access to the best international minds and leaders across the fields of business, science, social enterprise, athletics, and the arts. Brian shared, “We just wrapped up an exciting school year with four Olympic Medalists, three Nobel laureates, and distinguished former u.s. Military Commander and cia Director, David H. Petraeus, visiting Stamford’s state-of-the-art Reagan Theater. This has given our students the opportunity to ask questions and be coached and mentored by the best thought leaders globally.” Cognita has also partnered with other AmCham members like Microsoft and Bloomberg in setting up the Stamford Innovation Center. Through a project-based approach students focus on finding creative solutions to world problems. “We were fortunate to have Peter Grauer, Chairman of Bloomberg open the Bloomberg Lab in the Innovation Center,” said Brian. “We are the first international school to offer a financial laboratory equipped with the Bloomberg Professional service, the leading information platform used by over 320,000 financial professionals worldwide. Stamford students can now access news stories as they break, perform market analysis, compare investment strategies, and analyze specific companies, all within a guided academic environment. We are also about to announce a partnership with a top five U.S. engineering university, where we will have a tenured professor head up the Stamford Innovation Center. Our partnership includes a 'maker space' and a center for entrepreneurship.” Brian continues to lead a consultative approach between businesses and government across issues including regulations pertaining to private education providers and stemming the rising costs of living in Singapore. Brian said, “In recent years, the increase in housing costs was one of the key drivers for increased fees at the schools simply because the compensation packages of expatriate staff, who make up most of the staff, include housing. If housing costs
were to begin to rise rapidly again it would be a risk to Singapore, lowering its attractiveness. Overall though, Singapore is a good place to be.” Most of the challenges for Cognita remain outside of Singapore and there the Singapore government can play a helpful role. Brian explained, “Some markets tend to have macroeconomic and transparency challenges, especially in a highly regulated industry like education. Actually having the Singapore government being an advocate, to help us talk to the Ministry of Education in say Vietnam, is a great help.”
Stamford’s state-of-the-art campus including three swimming pools, 500-seat theater, and home of EducationUSA, an American University Advising Center in partnership with the U.S. Embassy.
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Acknowledgements This report was compiled and published by The American Chamber of Commerce in Singapore. Editor-In-Chief: Thomas H. McNutt, Head of Government & Public Affairs, AmCham Singapore Editors: Jordyn Arndt, Director of Research, AmCham Singapore Paul Burgman, Government Relations Intern, AmCham Singapore Joshua Klein, Government Relations Intern, AmCham Singapore Anna Lewandowska, Government Relations Intern, AmCham Singapore Pauline Lim, Government Relations Intern, AmCham Singapore Gabriela Luciano, Government Relations Intern, AmCham Singapore Crystal Ong, Government Relations Intern, AmCham Singapore Clarissa Wong, Communications & Public Affairs Executive, AmCham Singapore Analytical and Production Support: Dane Chamorro, Senior Managing Director, asean, Control Risks Noelle Ahlberg Kleiterp, Project Coordinator, AmCham Singapore Angela Sapp Mancini, Managing Director, asean, Control Risks Frank Tsai, Regional Research Manager, Control Risks We would like to thank the senior business leaders of the following companies for their participation in interviews conducted for this report: Janet Ang, Vice-President, Systems of Engagement & Smarter Cities, ibm Laurence Chin, Country Manager Singapore & Offline Sales, United Airlines Tim Cofer, Executive Vice President and President of Asia Pacific and Eastern Europe, Middle East & Africa (eemea), Mondelēz International
Killick Datta, ceo, International Brand Partners Alison Eyring, ceo, Organisation Solutions
Gan Seow Kee, Chairman and Managing Director, ExxonMobil Asia Pacific Jeffrey Hardee, Executive Director, Government & Corporate Affairs, Asia-Pacific and Singapore Country Manager, Caterpillar Hsing Ho, Group Managing Director – asean, DuPont
Dave Hoffmann, President of Asia Pacific, Middle East, and Africa (apmea), McDonald’s Corporation Stefan Jacoby, gm Executive Vice President and President, gm International, General Motors Company Sam Kim, Vice President, asean & Asia Development Markets, Procter & Gamble Company Jane Lau, Managing Director, Singapore, Starbucks Iain McLaughlin, President, asean Business Unit, The Coca-Cola Company
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Chris Milliken, ceo, PengWine Bala Nadarajah, President, Southeast Asia, United Technologies Corporation Mark Nelson, President of International Products, Downstream & Chemicals, Chevron Ng Tian Chong, Managing Director, Southeast Asia, Taiwan, & Hong Kong, Hewlett-Packard Ooi Huey Tyng, Country Manager, Singapore & Brunei, Visa Brian Rogove, Chief Executive Officer, Asia Pacific, Cognita Jessica Tan, Managing Director, Singapore, Microsoft George Tanasijevich, President and Chief Executive Officer, Marina Bay Sands Lay Lim Teo, Senior Managing Director – Singapore & asean, Accenture Jeff Weisel, Managing Director, Celadon Health Ventures Michael Zink, Head of Asean and Citi Country Officer, Singapore, Citi
Survey Methodology Sample size Data collection method Data collection period
List of 5,229 executives of AmCham member companies, the response rate was 6% (327) Web-based, self-administered survey. No enforcement on participation. January 7, 2015 to February 4, 2015
Note on Language AmCham Singapore’s membership includes both American companies and non-American companies that have significant connections to u.s. commerce. All were invited to participate in the survey, and there was no significant difference in responses based upon company nationality. Therefore, for simplicity, we have used the terms “American companies,” “AmCham members,” and “respondents” interchangeably throughout the report. For more information on the report, visit www.amcham.org.sg/SG50 COPYRIGHT STANDARDS This document contains proprietary research, copyrighted materials, and literary property of The American Chamber of Commerce in Singapore. It is for the guidance of your company only, and is not to be copied, quoted without citation, published, or divulged to others outside of your organization without the permission of The American Chamber of Commerce in Singapore. This document is of great value to The American Chamber of Commerce in Singapore. Accordingly, international and domestic laws and penalties guaranteeing patent, copyright, trademark, and trade secret protection secure the ideas, concepts, and recommendations related within this document. No changes may be made to this document without the permission of The American Chamber of Commerce in Singapore.
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