Singapore Investment News, Nov/Dec 2004 - CordLife

SINGAPORE 

I N V E S T M E N T N E W S 

November/December 2004 

Focusing on Innovation and Investment Opportunities in Singapore 

http://www.sedb.com 

35 Years In 

Singapore 

STMicroelectronics 

continues its phenomenal 

growth 

Gateway To Asia And 

The World 

Global companies using 

Singapore as a springboard 

Lodewijk Christiaan 

van Wachem 

Honorary Citizen – A role model for the business 

community

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ 

CONTENTS 

NOVEMBER/DECEMBER 2004 

2 

Business Briefs 

8 

Cover Story: Lodewijk Christiaan 

van Wachem 

The 73-year-old former President of the 

Royal Dutch/Shell company is Singapore’s 

Honorary Citizen 2004. 

12 

Profile: STMicroelectronics 

Celebrating its 35th year of operations in 

Singapore, STMicroelectronics continues its 

phenomenal growth in tandem with the 

country’s economic development. 

16 

Profile: Upstream Ventures 

International confidence is building in 

Singapore’s venture capital industry, and 

enjoying this upswing is Upstream Ventures, 

one of VC’s most proactive companies. 

18 

Innovation & Technology: 

MobiApps 

Logistics can be a hard act to follow. But 

MobiApps offers solutions to improve the 

efficiency of logistics companies. 

20 

Focus: Gateway To Asia And The 

World 

Global companies are using Singapore as a 

springboard for their various operations, 

further boosting the country’s status as an 

international hub. 

24 

Focus: Mechanical Engineering – 

Pillar Of Strength 

Underlying Singapore’s reputation as a 

world-class manufacturing location are 

strong supporting industries and 

disciplines, among them, mechanical 

engineering. 

26 

Focus: ‘Going Global’ With 

Singapore-Based Education 

With an emphasis on diverse and quality 

educational services, Singapore positions 

itself as a world-class education 

destination. 

AT A GLANCE: IMMIGRATION LAWS 

Singapore has one of the least restrictive immigration laws for the import of foreign talent: 

Singapore 3 

United Kingdom 8 

China Mainland 9 

Malaysia 13 

India 26 

Thailand 30 

Taiwan 32 

Hong Kong 33 

Australia 38 

USA 45 

Korea 49 

Indonesia 50 

Philippines 52 

Japan 59 

“Singapore not only offers one of the 

world’s most business-friendly 

infrastructures, but also a 

cosmopolitan setting with a wealth 

of local and foreign talent.” 

– M K Tsai, Chairman, MediaTek 

Source: International Institute for Management Development (IMD) (2004)

usiness briefs 

FIFTH IN ANTI-GRAFT INDEX 

Singapore has landed a respectable 

fifth ranking amongst 146 countries 

surveyed in the Corruption 

Perceptions Index 2004, conducted by 

Berlin-based non-governmental 

organisation Transparency International 

(TI). The anti-graft report has 

consistently found Singapore to be one 

of the least corrupt nations in the 

world. This year was no different, with 

Singapore faring significantly better 

than such neighbouring countries as 

Hong Kong (16th) and Malaysia (39th). 

Country 

Rank Country 2004 CPI Score 

1 Finland 9.7 

2 New Zealand 9.6 

3 Denmark 9.5 

4 Iceland 9.5 

5 Singapore 9.3 

6 Sweden 9.2 

7 Switzerland 9.1 

8 Norway 8.9 

9 Australia 8.8 

10 Netherlands 8.7 

Source: TI 2004 Corruption Perceptions Index (CPI) 

The Corruption Perceptions Index 

is a poll of polls, reflecting the 

perceptions of business people and 

country analysts, both resident and 

non-resident. This year’s figures were 

computed based on 18 surveys 

conducted by 12 independent 

institutions between 2002 and 2004. 

The index awards a highest 

possible score of 10 points (highly 

clean), and generally, countries with 

a score above 9 are perceived to have 

very low levels of 

corruption and are 

predominantly rich 

countries. Out of the 

highest possible score of 

10, Singapore garnered 

9.3 points. 

This is despite the 

fact that the city-state has 

yet to sign the United 

Nations Convention 

Against Corruption, the 

first worldwide anti- 

With a highest 

possible score of 10, 

Singapore garnered 

9.3 points. 

corruption treaty aimed to combat 

organised crime and graft. 

The Republic’s Ministry of Foreign 

Affairs (MFA), Ministry of Law and the 

Corrupt Practices Investigations 

Bureau, noted that the Convention has 

not come into force yet and added that 

it was being reviewed by various 

government agencies. “Singapore 

already has a very strong anticorruption 

reputation,” MFA added. 

“Our anti-corruption laws and 

enforcement agencies have worked 

well to keep Singapore consistently 

ranked as one of the least corrupt 

countries in the world.” 

SINGAPORE IS MOST ENVIRONMENTALLY FRIENDLY 

In a recent Pollution and Other 

Environmental Problems survey 

conducted by the Political & 

Economic Risk Consultancy (PERC), 

Singapore topped the list as one of 

the most environmentally friendly 

countries. 

“Few other governments in the 

world have been as aggressive in 

linking the quality of the environment 

to its business promotion and nation 

Country 

Quality Of The 

Government’s 

Environmental 

Protection/ 

Enhancement Policies 

Air 

Quality 

Water 

Quality 

Noise 

Pollution 

Traffic 

Congestion 

Average 

1 Singapore 1.25 1.00 0.75 1.00 2.50 1.30 

2 Australia 2.20 2.20 2.60 2.00 3.00 2.40 

3 US 2.45 2.82 2.18 2.82 4.55 2.96 

4 Taiwan 5.30 5.33 4.96 3.92 6.24 5.15 

5 Japan 4.00 6.00 3.00 8.00 5.00 5.20 

6 South Korea 4.67 7.10 4.33 5.67 9.53 6.26 

7 Hong Kong 6.40 8.20 5.30 5.90 6.20 6.40 

8 Vietnam 6.43 7.00 7.14 7.57 7.29 7.09 

9 Malaysia 7.33 7.33 6.33 7.67 7.10 7.15 

10 China 5.50 7.75 8.38 7.00 7.48 7.22 

Grades range from zero to 10, with zero being the best grade possible and 10 the worst. 

Source: Pollution and Other Environmental Problems survey, PERC 

building efforts. The initiative has 

clearly impressed expatriates who 

are living on the island,” said the 

report. 

From a scale of zero to 10, with 

zero being the best possible grade, 

the Republic bagged an average 

score of 1.30 out of five judging 

criteria (see table). The score is 

especially significant as participating 

Americans and Australians had to 

rate Singapore against their own 

countries. 

2 

SI News • NOV/DEC 2004

EUROCOPTER PLEDGES FURTHER EXPANSION 

Eurocopter South East Asia (ESEA) 

which was conferred the International 

Headquarters (IHQ) Award by EDB 

recently, has pledged to expand its 

businesses from Singapore. 

ESEA is a subsidiary of 

Eurocopter, a global market leader for 

helicopter export sales, which in turn 

is wholly-owned by EADS, the secondlargest 

aerospace, defence and 

related services company in the world. 

The EADS Group includes the aircraft 

manufacturer Airbus, Eurocopter and 

the ‘joint venture’ MBDA – the world’s 

second largest missile manufacturer. 

The EADS Group has a consolidated 

turnover of 301 billion euros. 

Pleased to receive the IHQ status, 

Fabrice Bregier, President and CEO of 

Eurocopter, said: “ESEA is certainly 

one of the most important subsidiaries 

of the Eurocopter Group. We intend to 

continue transferring a higher level of 

manpower expertise from Europe 

to enhance support locally and 

regionally.” The company, which has 

been in Singapore for 27 years, also 

has a training centre here, which is 

staffed by 10 qualified pilots and 

engineers to assist pilots, mechanics 

and avionics specialist for the entire 

Asia Pacific region. 

EDB Chairman Teo Ming Kian 

added that Eurocopter’s IHQ status is 

a boost to Singapore’s aerospace 

industry. “Centralising regional 

activities would increase the vibrancy 

of Singapore’s aerospace industry 

[and] create spin-offs for the logistics 

and IT industries,” he said. 

“We intend to continue transferring a 

higher level of manpower expertise 

from Europe to enhance support locally 

and regionally.” 

– Fabrice Bregier, President and CEO, Eurocopter 

NAKAMICHI UNVEILS PLANS FOR LOCAL HQ 

Nakamichi, a leading entertainment 

system manufacturer, will leverage on 

Singapore’s strengths to further 

develop the Nakamichi name in key 

markets worldwide. 

Conferred the International 

Headquarters Award (IHQ) by EDB 

recently, the design driven audio/ 

visual and multimedia systems 

manufacturer previously operated 

from Tokyo, Hong Kong and 

Singapore. It then consolidated its 

operations, including research and 

development, as well as sales and 

marketing to Singapore. The company 

also recently made Singapore 

its global headquarters. The 

country’s infrastructure, expertise in 

professional services and highly 

qualified manpower resources were 

major considerations for that decision. 

Christopher Yip, Managing 

Director of Nakamichi Corporation 

Limited, said: “IHQ status will help us 

leverage Singapore’s strengths to 

further develop the Nakamichi name 

in our key markets around the world.” 

“IHQ status will help us leverage Singapore’s 

strengths to further develop the Nakamichi 

name in our key markets around the world.” 

– Christopher Yip, Managing Director, 

Nakamichi Corporation Limited 

Nakamichi currently employs 

some 40 staff members in marketing 

and brand management, research 

and development, operations and 

corporate services, and plans to 

double this number by end-2005. It 

also plans on doubling its investments 

in Singapore from $10 million to $20 

million in the next five years. 

From Singapore, the company will 

also focus on aesthetic design, as well 

as the development and application of 

advanced technology to keep its 

products at the competition’s 

forefront. “We want to develop these 

strengths in our Singapore R&D 

division, as well as nurture the 

capability of our brand management 

team to compete effectively in the 

most sophisticated markets,” Yip 

added. 

3 



HERRENKNECHT TO INVEST $5M IN ITS 

ASIA-PACIFIC HQ 

“We plan to invest $500,000 

initially and eventually have a total 

investment of $5 million.” 

– Martin Herrenknecht, Chairman, 

Board of Management, Herrenknecht AG 

German-based Herrenknecht AG, the 

world’s No. 1 maker of tunnelling 

machines, has set up its Asia-Pacific 

headquarters in Singapore to maintain 

its market position in Asia. The region 

accounts for 30 per cent of the 

company’s annual sales, which 

amounted to 355.8 million euros 

($756.7 million) last year. 

Herrenknecht Asia Headquarters 

will not only oversee its existing 

subsidiaries in China, Malaysia, 

Australia and Thailand, but will also 

help the company break into the 

Indian, Vietnamese, Korean and 

Indonesian markets. Herrenknecht 

Asia should see sales hit $10 million 

in the 2005-06 fiscal year, and rise to 

$65 million four years later, projected 

Martin Herrenknecht, Chairman of 

the Board of Management at 

Herrenknecht AG. 

“We plan to invest $500,000 

initially,” he said, “and eventually 

have a total investment of $5 million. 

We will hire 20 people (engineers) 

and will go up to about 40 people in 

about three years.” Singapore will 

also be the centre of research 

and development to customise 

machines to Asian requirements. 

Herrenknecht’s drive into Asia was 

given a boost when it was 

recently conferred the International 

Headquarters (IHQ) Award by EDB. 

Reasons cited for Singapore to 

head Herrenknecht AG’s Asian 

business included the country’s 

proximity to the company’s 

customers, the quality of the skilled 

and experienced local workforce, 

engineering and technological 

expertise as well as the 

stable economic and political 

environment. 

ORACLE ESTABLISHES ADVANCED TECHNOLOGY 

AND SOLUTIONS CENTRE 

Oracle’s first solutions development 

centre in Southeast Asia was opened 

in Singapore recently at a cost of $11 

million. 

Called the Oracle Technology and 

Solutions Centre (ATSC), it is a joint 

initiative of Oracle and EDB and has 

been in operation since July last year. 

Already, 18 Oracle solutions engineers 

are working on various projects. 

Seventeen of these engineers are 

Singaporeans who had spent a year 

at Oracle’s US headquarters 

familiarising themselves with the 

various technologies under EDB’s 

Training and Attachment Programme. 

“It is the special expertise of the Oracle 

ATSC solutions engineers that is 

making a difference in the kinds of 

solutions that are being developed in 

the region,” noted Derek Williams, 

Executive Vice President of Oracle 

Asia-Pacific. 

The solutions developed by the 

Oracle engineers will also help 

customers “increase efficiencies, 

reduce costs and gain competitive 

advantage,” added Pascal Sero, Vice 

President of Research and 

Development at Oracle Asia-Pacific. 

Currently ATSC is working on a proof- 

“It is the special expertise of the Oracle 

ATSC solutions engineers that is making a 

difference in the kinds of solutions that are 

being developed in the region.” 

– Derek Williams, Executive Vice President, Oracle Asia-Pacific 

of-concept grid computing project 

with the Singapore Land Authority and 

an identity management project for a 

logistics company. ATSC will also 

manage the $20 million Oracle-Red 

Hat Linux Porting Centre, which was 

launched last June in Singapore. 

Singapore’s strategic location, 

infrastructure, government support 

and talent pool were cited as reasons 

that will render it even easier for 

Oracle to work closely with its 

partners around the region. 

4 


TELCO ALLIANCE TO BOOST REGION’S MOBILE 

MARKET 

A consortium of seven telco giants has 

signed an agreement to jointly form a 

mobile alliance – the Asian region’s 

biggest – called Bridge Mobile 

Alliance. Expected to commence 

operations by the first quarter of 2005, 

the new set-up will have access to the 

seven shareholders’ initial subscriber 

base of over 56 million, which has the 

potential to balloon to as many as 300 

million users. 

Bridge Mobile Alliance will focus 

on delivering seamless as well as 

interoperable regional and mobile 

services across the region, with the 

establishment of a regional mobile 

infrastructure and common service 

platform. New products and services 

will also be developed, and better 

competitive advantages and 

differentiation will also be created for 

the mobile operators in their 

respective markets. 

Bridge Mobile Alliance is likely to 

invest between US$30 million and 

US$40 million over the next three 

years, and the company is intending 

to possibly roll out its inaugural suite 

of jointly developed services during the 

next few years. These include 

enhanced voice and data roaming 

services, and a single source of supply 

of mobile services in the region for 

multinationals and large corporate 

customers. 

“The forming of Bridge Mobile is 

an indication of the level of 

commitment by the mobile operators 

to work closely and share the risks 

and benefits involved in making the 

partnership work,” pledged Lim 

Chuan Poh, Chairman of Bridge 

Mobile and CEO of SingTel Mobile, one 

of the seven founding alliance 

members. “Together, we can bring 

about a better mobile experience for 

users across the region.” 

The other six telcos are Bharti 

(India), Globe Telecom (Philippines), 

Maxis (Malaysia), Optus (Australia), 

Taiwan Cellular Corporation (Taiwan), 

and Telkomsel (Indonesia). 

“Together, we can bring about a 

better mobile experience for 

users across the region.” 

– Lim Chuan Poh, Chairman of Bridge Mobile and 

CEO of SingTel Mobile 

A BOOST FOR THE WIRELESS INDUSTRY 

A unique initiative, which provides 

resources to support activities 

ranging from conceptualisation to 

manufacturing and commercialisation 

of wireless products, has been 

launched here. 

Called the Wireless Community, 

it marked a milestone in Singapore’s 

vision of becoming the Asian leader for 

the wireless and mobility industry. 

An EDB initiative, the Wireless 

Community is hosted by Nanyang 

Polytechnic (NYP) and is made up of 

a collaborative group of 11 founding 

partners, which includes the likes of 

Agilent Technologies, Intel and Cisco 

Systems. 

Already, the project has eight 

Singapore-based wireless product 

developers who have registered as 

members of the Wireless Community. 

They will be able to tap into numerous 

funding and business networking 

opportunities, intellectual property 

management and customised training 

programmes offered by the founding 

partners. In its role as Wireless 

Community host, NYP will manage 

and co-ordinate programmes to 

“The Wireless Community is a muchneeded 

catalyst to propel our local 

innovators to the world’s wireless arena.” 

– Steven Santiago, Founder and Technology Director, 

WinEdge & Wireless Pte Ltd 

promote interaction among these 

companies in the community while 

providing them access to its expertise 

in areas like design service, test 

solutions and technical consultancy. 

Steven Santiago, Founder and 

Technology Director of WinEdge & 

Wireless Pte Ltd, one of the eight 

community members of the initiative, 

had much praise for the project. “The 

Wireless Community is a muchneeded 

catalyst to propel our local 

innovators to the world’s wireless 

arena,” he said. 

5 



CORDLIFE OPENS SECOND TISSUE PROCESSING & 

STORAGE FACILITY 

Leading homegrown tissue bank 

CordLife, a subsidiary of stem cell 

biotechnology and immunotherapy 

company CyGenics, recently opened 

its second facility in Singapore. 

The tissue processing and storage 

facility, valued at $1.7 million, is the 

first of its kind in the region. Situated 

next to the company’s existing facility 

at Camden Medical Centre, the new 

facility is custom-built and has double 

the storage capacity to meet the 

increasing demand for cord blood 

banking services in the region. 

The new laboratory meets the 

stringent Good Manufacturing 

Practices (GMP) and American 

“The opening of this new facility is a 

measure of our commitment to Singapore 

and to Asia.” 

– Soren Bested, Chief Technology Officer and 

Laboratory Director, CordLife 

JCCI CELEBRATES 35 YEARS IN REPUBLIC 

The Japanese Chamber of Commerce 

and Industry (JCCI), Singapore 

commemorated its 35th anniversary 

in the city-state in October. From a 

mere 56 members at the time of the 

business association’s inception in 

1969, the figure has grown to 745, and 

JCCI is now also the second largest 

Japanese chamber in the ASEAN 

region after Bangkok’s. 

Japanese investor confidence in 

the Republic remains strong, with 

existing companies expanding their 

operations here such as Mitsui 

Chemical and Yokogawa Electric. In 

fact, Japan is the second largest 

foreign investor in Singapore after the 

US, with cumulative investments 

accounting for 28 per cent of total 

foreign investment into the country. 

For every year over the last five years, 

Japanese companies have sunk in 

between $1.2 and $1.8 billion in fixed 

assets in Singapore. 

Trade & Industry Minister Lim Hng 

Kiang, who delivered his speech to 

Japanese businessmen and dignitaries 

such as the Ambassador of Japan to 

Singapore, His Excellency Takaaki 

Kojima, also pledged Singapore’s 

continued commitment to support their 

business interests. A case in example 

For every year over the last five years, 

Japanese companies have sunk in between 

$1.2 and $1.8 billion in fixed assets in 

Singapore. 

Association of Blood Banks (AABB) 

requirements and is aiming to attain 

full AABB accreditation – which 

translates to the highest standards of 

cord blood handling, processing and 

storage in the world. Only seven other 

cord blood banks around the world 

have achieved this accreditation so far. 

“After over two years of 

operations, I’m glad to say we have 

not had a single incidence of 

contamination in the lab,” said Soren 

Bested, Chief Technology Officer and 

Laboratory Director, who added that 

he is confident of maintaining that 

record at the new laboratory. 

“As we expand in this region, this 

new facility will be the benchmark by 

which all future facilities will be 

measured,” added Chris Fullerton, 

Chairman, CyGenics. “The opening of 

this new facility is a measure of our 

commitment to Singapore and to Asia. 

From Singapore as our tissue banking 

business base, we are expanding our 

operations throughout the region.” 

was the ASEAN-Japan Closer 

Economic Partnership. “With the 

creation of a common customs and 

tariff regime across Asean, Japanese 

companies can leverage on the benefits 

of procurement and assembly at the 

most efficient locations in ASEAN, 

creating a diverse but highly effective 

manufacturing network,” said Mr Lim, 

who also lauded the JCCI for its 

efforts in boosting bilateral relations 

between Japan and Singapore, 

“whether through scholarships, 

training institutes, or other 

collaborative initiatives”. 

6 


LOGISTICS INSTITUTE STEPS UP CAPABILITIES 

“Our primary focus in this new phase is to 

further enhance our research and 

manpower capabilities for Singapore’s 

logistics industry” 

– Professor Tan Chorh Chuan, Chairman, TLI – Asia Pacific 

Advisory Board and NUS Provost and Deputy President 

Boosting Singapore’s strength as a 

global logistics and supply chain 

management hub is The Logistics 

Institute (TLI) – Asia Pacific, a joint 

collaboration between the National 

University of Singapore (NUS) and the 

Georgia Institute of Technology 

(Georgia Tech). Established in 1999, 

TLI – Asia Pacific’s role is to develop 

and promote research, industry 

collaboration and education to nurture 

logistics excellence in the region. 

In October, NUS and Georgia Tech 

signed a milestone Memorandum of 

Understanding (MOU) for TLI – Asia 

Pacific Phase II. During this five-year 

period, the two universities will 

continue to spearhead more industryrelevant 

education and research such 

as an executive programme in 

Supply Chain Management (SCM), 

regionalisation of its professional 

short courses, an online knowledge 

portal of case studies and best 

practices from the logistics industry, 

as well as education in Radio 

Frequency Identification (RFID). 

“Our primary focus in this new 

phase is to further enhance our 

research and manpower capabilities 

for Singapore’s logistics industry, to 

meet the ever-increasing demands of 

the future,” said Professor Tan Chorh 

Chuan, Chairman, TLI – Asia Pacific 

Advisory Board and NUS Provost and 

Deputy President. 

POLYTECHNICS PROMOTE ENGINEERING AS 

CHOICE CAREER 

Singapore’s five polytechnics have 

joined forces to promote engineering 

as a choice of study and career. The 

five participating institutions are the 

Nanyang, Ngee Ann, Republic, 

Singapore, and Temasek Polytechnics. 

Together, they will form a new 

Engineering Task Force that will raise 

the profile of engineering and 

engineers during a two-year 

campaign entitled “Engineering: 

Passion and Possibilities”. Kicking this 

off was the inaugural Engineering 

Week, held during the first week of 

November, which helped to actively 

boost awareness amongst postsecondary 

school students with its 

series of educational and informative 

talks, workshops and exhibitions. 

At the official opening of 

Engineering Week, Prof Low Teck 

Seng, Principal and CEO of Republic 

Polytechnic and Chairman of the 

newly formed Engineering Task Force, 

stressed that engineers will remain 

crucial to Singapore’s economy. 

“Engineering graduates have always 

been high in demand, even during the 

recent Asian economic crisis,” he 

noted. “A recent employment survey 

[also] showed that the demand for 

engineering jobs in the future is likely 

to remain strong.” 

Currently, manufacturing contributes 

to about 26 per cent of Singapore’s 

GDP, while the manufacturing-related 

services sector accounts for more 

than 12 per cent. “Together, they 

provide more than 600,000 jobs, and 

about 30 per cent are engineering- 

Other highlights under TLI – Asia 

Pacific Phase II include an updated 

logo, a revamped organisational 

structure, and the appointment of Dr 

Robert de Souza as the institute’s new 

Executive Director. 

“The excellent research and 

education culture at NUS; the strong 

support from the Government in 

pursuing logistics excellence; and 

the large international community in 

Singapore provide a strong basis for 

our continuing collaboration with 

NUS in TLI – Asia Pacific Phase II,” 

added Professor Jean Lou Chameau, 

Georgia Tech Provost and Vice- 

President of Academic Affairs. 

related positions,” pointed out EDB 

Chairman Teo Ming Kian, who is 

himself a trained mechanical 

engineer. 

“A recent employment survey showed that 

the demand for engineering jobs in the future 

is likely to remain strong.” 

– Prof Low Teck Seng, Principal and CEO, 

Republic Polytechnic and Chairman of the Engineering Task Force 

7 


cover story 

A TRUE 

VISIONARY 

Lodewijk Christiaan van Wachem is Singapore’s Honorary Citizen 2004. 

SI News takes a closer look at the man, his passion for work, and his 

penchant for Singapore. 

His efforts have spanned decades: in 1994, 

for example, he played an instrumental role 

in securing Seraya Chemicals Pte Ltd, 

Singapore’s first styrene monomer/ 

propylene oxide plant (SM/PO). Under his 

guidance, other significant investments the 

Royal Dutch/Shell Group made were 

starting the company’s Pulau Bukom refinery, the 

expansion of Petrochemical Corporation of Singapore and 

a second SM/PO plant in partnership with BASF AG – the 

largest chemical company in the world. Indeed, van 

Wachem’s sustained confidence in the city-state has proved 

well founded, as today, Singapore is a thriving petroleum 

hub in Asia. Just last year, output rose by 20 per cent to 

$21.3 billion and value-add grew two per cent to $1.5 billion. 

Vision, coupled with a sense of unity and drive, he feels, 

is what makes Singapore an ideal location for an 

8 


investment. “It’s good to have vision,” he said, “but if you 

don’t put it into action then you still don’t get very far.” 

“Success with every project helps,” he continued, 

“[because] investments don’t usually come in one fell 

swoop. You try something and then you say ‘oh my gosh! It 

works!’ and move on to the next project.” 

Then how did he persuade companies such as Shell to 

invest heavily in Singapore? “It was, I think, knowledge of 

this part of the world, a certain affinity with it (that helped),” 

he said. 

THE BEGINNINGS 

His parents themselves were Shell employees who 

were stationed in Indonesia while prospecting for crude oil, 

and a young van Wachem spent the first nine years of his 

life there. 

“My parents went for a holiday to the Netherlands, but 

then the Second World War broke out, so we were caught 

and couldn’t go back.” After the war ended, he decided to 

complete his studies in the Netherlands. 

Upon graduating from university, van Wachem too 

followed in his parents’ footsteps by joining the Royal Dutch/ 

Shell Group in 1953, where he spent the next 48 years in 

search of crude oil around the world. After spending nine 

years in Latin America, eight years in Africa and another 

four years in Southeast Asia, he rose up the ranks to 

become Director of the Royal Dutch Shell Group in 1977, 

President in 1982 and Chairman of the Committee of 

Managing Directors in 1985. In 1992, he was appointed 

Chairman of the Supervisory Board of the Royal Dutch 

Petroleum Company, and held this position until July 2002. 

THE SINGAPORE SLANT 

Almost four decades ago, in 1967, van Wachem first made 

his way to Singapore. At the time, the Royal Dutch/Shell 

Group of companies in Singapore, Malaysia and Brunei 

were operating collectively as a single unit. Stationed at 

Brunei by Shell, he made monthly trips to Singapore, and 

upon returning to the Netherlands, he visited at least once 

a year. And, as a member of the Singapore-Netherlands 

Business Friends Network and the EDB International 

Advisory Council since its inception in 1994, his relationship 

with Singapore is still going strong – he now visits the 

country at least once a year. 

Born in Pakalian Brandan, a village near Medan in 

Indonesia, van Wachem feels an affinity for Singapore, due 

to the Republic’s proximity to his birthplace. “I was born 

not that far away from here and that keeps on being 

meaningful to [me],” he stressed. He also loves meeting 

his friends in Singapore. “I’ve made friends in this part of 

the world, people I’ve known for many years. I feel at home... 

in any place, the attractiveness depends on the people you 

know and meet.” 

van Wachem holds a number of 

board memberships, including 

Chairman of the Supervisory 

Board for Dutch electronics giant 

Royal Philips Electronics N. V., 

which has its headquarters in 

Amsterdam. 

9 


cover story 

Singapore’s biggest attractions to the Royal Dutch/ 

Shell Group were its vision, unity and drive. The vision, as 

formulated by the then-Prime Minister Lee Kuan Yew, 

recalled van Wachem, was that Singapore wasn’t destined 

to be a location of low cost manufacturing, but was instead 

meant to concentrate on “high tech production, research 

and development, excellence of services” and most 

importantly, developing into a “world class transport hub”. 

The drive to develop a good infrastructure and a first class 

education system also struck van Wachem as impressive. 

While some nations struggled with racial or religious 

problems, Singapore’s “sense of unity”, which was “for the 

benefit of all”, also provided a stable environment to invest 

in. But beyond all these, he feels that the dedication to turn 

ideas into reality is Singapore’s main advantage. 

President S R Nathan and Mrs Nathan with 

Mr and Mrs Van Wachem 

Despite having worked in both Europe and Asia, van 

Wachem displays a preference for Asia. “The problem with 

Europe,” he explained, “is that it’s very much a consensus 

society and it is struggling to become a European Union.” 

The unification of different countries under a single banner 

is understandably a slow process, he said, but one he 

wished was faster. “Maybe it’s because I’m growing old,” 

he laughed, “I’m getting impatient.” 

“... investments don’t usually 

come in one fell swoop. You try 

something and then you say 

‘oh my gosh! It works!’ and 

move on to the next project.” 

– Lodewijk Christiaan van Wachem, 

Singapore Honorary Citizen 2004 

The help that government agencies like the EDB have 

been giving foreign companies venturing into Singapore 

has also been vital. “It’s the Ministry of Finance, and the 

Maritime and Port Authority of Singapore. They’ve all been 

trying hard to make [Singapore] attractive and to ease the 

introduction of new companies in Singapore,” he said. 

A PASSION FOR WORK 

Once he retired as President from Shell, the Indonesianborn 

Dutchman took on a number of board memberships. 

Until 2002, he served on the Supervisory Boards of Akzo 

Nobel, BMW and Bayer, and IBM in the US. And he remains 

busy: currently, he is Chairman of the Supervisory Board 

of Royal Philips Electronics N.V., as well as Chairman of 

the Board of the Zurich Financial Services and of the Board 

of Global Crossing. Thanks to his tenures on these various 

boards, he was able to play a pivotal role in helping 

Singapore obtain significant investments from these 

companies, namely Akzo Nobel and Royal Philips 

Electronics N.V. “Philips Electronics just launched a new 

slogan – sense and simplicity. And it struck me that these 

are the two things [that] describe the attitude of the 

Singapore government vis-a-vis business,” he quipped. “It 

always makes sense and they always try to make it as 

simple as possible for us. That has been a great help.” 

A consummate but unconventional leader, van 

Wachem explained his diversified portfolio. “I didn’t believe 

that [only undertaking companies based in the 

Netherlands] would be fair to the companies that I served 

on. I don’t think it helps if you were only parochially 

interested,” he said. “I benefited because I liked it, and I 

hope they benefited because I think companies of that kind 

should know what the thinking and the problems are in 

other parts of the world.” 

DEEPLY COMMITTED 

Call him a workaholic with a passion, but as van Wachem 

declared, “My work is my hobby – and I’m enjoying it!” But 

he did confess to a need to slow down and have more time 

10 


THE MAN IN BRIEF 

Born: 

1931 in Pakalian Brandan, Indonesia 

Family: 

Married, with two sons, a daughter and five 

grandchildren 

Education: 

Graduate of Delft University of Technology in the 

Netherlands 

Career: 

Started with the Royal Dutch/Shell Company, 1953 

Director of the Royal Dutch/Shell Group, 1977 

President of the Royal Dutch/Shell Group 1982 

Chairman of the Committee of Managing Directors 

of the Royal Dutch/Shell Group, 1985 

Chairman of the Supervisory Board of the Royal 

Dutch/Shell Group, 1992 

Member of the EDB International Advisory Council 

(IAC), 1994 

Active member of the Singapore Technologies (ST) 

International Advisory Panel (IAP), 1999 

Served on the Supervisory Boards of Akzo Nobel, 

BMW and Bayer, on the Board of IBM, until 2002 

for his grandchildren. “As you get old the travelling becomes 

more tiresome, but I couldn’t visualise that I would be happy 

by just turning around in my own little country,” he added. 

“I’ve already stepped down from most boards, but I will 

step down from a few more boards and then I will have 

more time.” 

Up to today, van Wachem still remains keen on 

attracting investments into Singapore, and on his travels, 

he continues to champion Singapore as a compelling global 

hub for business and investment. Thus, for his various 

contributions to the business field and deep commitment 

to Singapore, Lodewijk Christiaan van Wachem received 

the Honorary Citizen Award from President S R Nathan in 

November 2004. 

Upon receiving the award, van Wachem, who was 

lunching in Singapore when he heard the news, said he 

was “very surprised, very pleased and very honoured”. Ever 

humble and gracious, he hastened to add, “I have gained 

far more from Singapore than I have contributed.” EDB 

Currently serving as Chairman of the Supervisory 

board of Royal Philips Electronic N.V., Chairman of 

the Board of Zurich Financial Services and Global 

Crossing. He is also a Member of the Board of ATCO 

(Canada) Ltd and of the Executive Board of Rand 

Europe 

Honours: 

Honorary Commander of the Order of the British 

Empire, 1977 

Honorary Knight in the Order of the Netherlands 

Lion, 1981 

Honorary Knight (Britain), 1988 

Commander in the Order of Orange Nassau, 1990 

Conferred Emeritus IAC status, 2000 

The Public Service Star – Distinguished Friends of 

Singapore Award, 1998 

Honorary Citizen of Singapore, 2004 

11 


profile 

STMICROELECTRONICS: 

35 YEARS IN SINGAPORE 

Celebrating its 35th year of operations in Singapore, STMicroelectronics 

continues its phenomenal growth in tandem with the country’s economic 

development. 

They came, saw and conquered: It wouldn’t be 

too far from the truth to say that 

STMicroelectronics (ST) did just that with 

regards to the local semiconductor industry. 

With 35 years of success here, the Fench- 

Italian giant officially opened its 180,000 sq m 

facility, known as the ST TechnoPark in Ang 

Mo Kio in December. The TechnoPark comprises ST’s Asia- 

Pacific business headquarters and four wafer fabrication 

plants. Presiding over the landmark event was President 

and CEO of ST, Pasquale Pistorio, who acknowledged the 

role Singapore has played in the company’s progress and 

ST’s commitment to continue to grow with the Republic. 

PIONEERING THE FAB INDUSTRY 

The French-Italian giant, then known as SGS-Thomson, 

was the first to see the potential of the Asian market as 

far back as 1969, a simple assembly and test operation 

was set up to support the parent company in Europe. 

Though staff headcount was just five, the facility marked 

the beginning of a great business partnership between 

the semiconductor conglomerate and Singapore. 

STMicroelectronics opened its first assembly and test facility in Toa Payoh in 

1969. 

12 


In just a few months, the small operation grew to a 

dedicated workforce of about 200 and its first year of 

operation saw manufacturing output reached an 

outstanding $2 million. With such positive 

results, it didn’t take long for Pistorio and 

his team to consider opening a wafer 

fabrication plant in Singapore. Said 

Pistorio, “This was the first time any 

European or American company was 

putting a fab in the Asia-Pacific region.” 

ST’s decision to set up a fab here was 

both pioneering and visionary. “At the start 

of the 1980s, most investors considered 

Asia as quite a dynamic region, but viewed 

it primarily as a region for low-cost 

manufacturing,” said Pistorio. He and his 

team, however, begged to differ. 

Convinced that Singapore was an ideal 

location in a region that would soon evolve 

into a mature, more sophisticated market, 

especially for high-end manufacturing, 

the country’s first wafer fab was opened 

in Ang Mo Kio in 1984. ST moved ahead 

with a number of pioneering 

achievements. For example, it became the 

first semiconductor supplier to set up a 

regional integrated circuit (IC) design 

centre in 1984 engaging in full and semicustom 

design. Also, in 1994, ST was the 

first company to be conferred the 

prestigious Business Headquarters (BHQ) 

award by the Economic Development 

Board. 

MAKING IT WORK 

Since then, the company has slowly but steadily raised its 

profile in Singapore. “Twenty years ago, we were processing 

simple wafers of a few hundred transistors in one integrated 

chip. Today, our wafer fabs are so complex that within one 

manufacturing line, there can be as many hundreds of 

process steps capable of fabricating millions of transistors 

in one chip,” said Jean-Claude Marquet, Corporate Vice 

President and CEO Asia-Pacific. There are now a total of 

four well equipped and fully-automated facilities processing 

5-inch, 6-inch and highly advanced 8-inch micron wafers at 

the ST TechnoPark in Ang Mo Kio. Together, these plants 

roll out about 30 per cent of ST’s total global semiconductor 

production. In fact, the Singapore facility is the 

semiconductor giant’s largest single site in the world. It also 

has the distinction of being the most cost efficient and 

productive of all of ST’s plants worldwide. 

The Singapore 

facility is the 

semiconductor 

giant’s largest 

single site in 

the world... it 

is also the 

most cost 

efficient and 

productive of 

all of ST’s 

plants 

worldwide. 

sensor modules to co-processors. In terms of production, 

the assembly and test plant produces some 605 million 

units in a wide range of packages a year. 

In addition to wafer fabrication, ST’s 

activities here span the full value chain of 

the semiconductor industry from regional 

headquarter operations, IC design, 

research & development, test and 

assembly to sales and marketing and 

supply chain management. As Pistorio 

himself noted, this integrated business 

model is a key point in ST’s success. By the 

end of 1999, the Singapore operation was 

ringing up one-third of total company 

revenues, and by early 2001, the Asia- 

Pacific region had become ST’s most 

important market. With Asia-Pacific 

accounting for 42 per cent of ST’s total sales 

in 2003, the trend looks set to continue in 

the upward arc. 

AN ENDURING 

PARTNERSHIP 

Not one to sit on its laurels, ST has in the 

last three years invested $2.7 billion to 

further expand production capacity at its 

plants. This brings the total amount the 

company has already pumped into 

operations here to a whopping $4.7 billion. 

The investment stands testament to ST’s 

vote of confidence in its host country and the part that 

Singapore continues to play in its growth and success. As 

Pistorio once noted, “Singapore embodies all the attractive 

attributes a company can seek in a business partner: worldclass 

infrastructure, flexibility, excellent education system, 

The assembly and test facility at Toa Payoh, which kickstarted 

ST’s great venture here has also come a long way 

over the years. It is the core centre of expertise for SMart 

Optical Package (SMop), a process that is unique to the 

plant, which employ ST’s silicon science and know-how to 

realise a fully integrated automatic line in assembly and 

test stage. SMop is used in the manufacture of modules 

for ST’s range of Complementary Metal Oxide 

Semiconductor (CMOS) imaging solutions, from image 

Jean-Claude 

Marquet, Corporate 

Vice President and 

CEO Asia-Pacific 

13 


By adding R&D activities to its 

repertoire of operations, ST has 

cemented its unique position as 

a full service provider. 

technology mindset, pro-business environment, manpower 

capabilities and an excellent springboard to the region.” 

Singapore too couldn’t get a better business partner 

than ST. For its contribution to the local economy, the 

company was presented Singapore’s highest corporate 

accolade, the Distinguished Partner in Progress (DPIP) 

Award in 2000. The award recognises companies which are 

not only pioneers in their field but also key contributors in 

a wide range of economic, social and community activities. 

ST was the first semiconductor company to receive this 

award since its inception in 1999. The longstanding 

partnership is also aided by the perfect fit between ST’s 

corporate strategy and Singapore’s vision. “ST feels very 

much at home in Singapore,” said Jean-Claude Marquet, 

Corporate Vice President and CEO Asia-Pacific, “ST has 

climbed the value-added ladder at the same speed 

Singapore was foreseeing the need for evolution for the 

country. It was excellent timing for both of us.” 

REVVING UP 

ST has moved in tandem with Singapore which has shifted 

from low-end, labour-intensive manufacturing industries 

to technology and knowledge-intensive ones. The 

company is involved in skilled, high-end manufacturing 

and R&D activities. “There is a great availability of highly 

skilled people in Singapore,” said Marquet. That, and 

Singapore’s ability to attract top talent worldwide, strong 

IP regime, stable infrastructure and strong governmental 

support for innovation were some of the reasons 

attributed to this development. 

ST’s business headquarters building – a testament to its long-term strategy in Singapore. 

ST’s strong manufacturing presence is supported by 

its Asia Pacific Microchip Design Centre (APDC) set up in 

1984 with an initial core of eight engineers all trained in 

the parent company in Europe. The APDC has seen steady 

growth and has helped to generate revenues when local 

designs were transferred to production. The centre’s 

current staff of 60 are involved in IC design for a number 

of different markets such as computer peripherals, smart 

card, imaging and consumer. “ICs are the brains and 

muscles behind the finished products that the everyday 

consumer is familiar with,” explained Marquet. “Our 

designs lie hidden within the many hard disc drives, sound 

cards, monitors, CTVs and printers.” 

The centre is also developing advanced Application 

Specific ICs (ASICs) and sophisticated System-On-Chip 

solutions with system based technologies. Since 2001, 

the APDC has also shifted its attention to the increasing 

popular CMOS imaging technology to develop sensors and 

image co-processors for digital still camera and mobile 

phone applications. The cumulative revenues from locally 

designed products have exceeded US$500 million. The 

APDC is so successful that it has spawned similar 

operations in Shenzhen, China with the new generation 

of designers being trained at APDC in Singapore. 

ST has moved in tandem with 

Singapore which has shifted 

from low-end, labour-intensive 

manufacturing industries to 

technology and knowledgeintensive 

ones. 

MOVING TO R&D 

By adding R&D activities to its repertoire of operations, ST 

has cemented its unique position as a full service provider. 

The R&D centre focusses on video and 

audio capabilities as well as wireline 

and wireless development. “We intend 

Singapore to be a key resource for 

expertise like third generation 

Wideband Code Division Multiple 

Access (WCDMA) and Digital Signal 

Processing (DSP),” said Marquet. 

In 2004, Kay Das, Director of ST’s 

R&D in Asia-Pacific, was awarded the 

distinguished National Science and 

Technology Medal. Under Das, the 

research team is credited for developing 

exciting intellectual property in the 

audio, video, wireline and wireless 

markets, paving the way for ST to deliver 

new products for the audio, video and 

3G market. So far, the team has filed 

more than 70 patents. 

14 


ENGAGING THE 

EMPLOYEES 

ST’s phenomenal success is due 

in part to its work culture. “Our 

people are hardworking and 

committed. Everyone is striving 

for efficiency and productivity,” 

said Marquet. Ensuring that its 

people are constantly upgrading 

their skills and expertise is the 

company’s ST University Asia Pacific (STU AP), also 

located in Singapore. The learning institute caters mainly 

to the needs of the company’s 13,000 strong workforce 

scattered across the region. While most of the 

programmes are developed by ST, the company also 

works with reputed universities like INSEAD, which has 

a Singapore-based campus, to come up with suitable 

training modules. 

AN EYE ON THE FUTURE 

Nanotechnology features high in ST’s plans for the future. 

As a result of the long-standing relationship and working 

experience in Singapore, the company recently moved its 

research in carbon nanotubes to the country’s shores. The 

facility, known as ST Nanotube Centre, will focus on the 

material aspects and the device applications which make 

use of the outstanding properties of functionalised carbon 

nanotubes. Nanotubes are forecast as a revolutionary way 

to build ever-smaller devices that will go beyond the current 

limits of silicon-based technology. 

Also, ST set up a new centre of excellence for 3G mobile 

terminal development in Singapore following the successful 

completion of its collaboration with A*STAR’s (Agency for 

Science, Technology and Research) Institute for Infocomm 

Research (I 2 R). The two 

organisations have been working 

together since 1999, and their 

efforts have yielded significant 

intellectual properties (IP) and 

generated great returns in R&D 

expertise for both parties. With 

the centre of excellence, ST is 

looking to develop the IP into 

business reality and collaborate 

with key customers to capitalise 

on the lucrative Asian telecommunications market. 

Singapore is once again expected to serve as the launchpad 

for ST to secure a foothold in China and other countries in 

the region. All in all, the partnership between Singapore 

and ST looks set to grow even stronger. 

SEMICONDUCTOR INDUSTRY 

TAKES OFF 

Having begun in the early 1960s, the sector saw rapid 

growth in the 1980s and in under 10 years, the number of 

wafer fabrication plants in operation grew to 10. Today, 

there are about 40 IC design centres, 12 wafer fabrication 

plants and 18 IC assembly and test facilities in Singapore. 

The semiconductor industry is also vertically integrated 

with a number of research and development activities. Last 

year was a good year for the semiconductor industry which 

saw a number of leading giants including ST stepping up 

their operations here. The increase in semiconductorrelated 

activities saw the industry’s output soar to $22.3 

billion in 2003. EDB 

For more information on STMicroelectronics, visit: www.st.com 

On EDB’s Electronics and Precision Engineering Industry, visit: Industry 

Opportunities/Electronics and Precision Engineering section of 

www.sedb.com 

15 


profile 

MOVING 

UPSTREAM 

It’s boom time for venture capital firms operating in Singapore. As local VC 

company Upstream Ventures puts it, being based here is to be at the 

crossroads of investment activity and opportunities in Asia. 

From a modest-looking renovated shophouse 

just behind Boat Quay, a Singaporean 

permanent resident and his Singaporebased 

expatriate partners are charting the 

country’s course as a land of opportunity for 

venture capital (VC). 

Carmelo Pistorio, Pierre Hennes, David E. Wynne and 

Cristiano Torresi (who is based in San Francisco), are the 

people behind Upstream Ventures, a venture capital fund 

management company. It invests globally with a particular 

focus on the trends and opportunities transforming Asian 

economies, in sectors including semiconductors, security 

and biometrics, biotechnology, mobile content and 

applications, and IT software and solutions. 

Encouraged by a number of successful private ‘angel’ 

investments made by its founder Pistorio between 2001 and 

2004, Upstream Ventures was incorporated in March 2003 

and currently manages a global portfolio of 15 companies, 

led by their team of four investment professionals. They have, 

under their belt, a diverse yet complementary mix of venture 

capital, start-up and corporate business experiences, as well 

as international business development expertise. 

“Upstream Ventures is modelled on the traditional 

venture business of building and growing early stage 

companies,” explained Hennes, Director, Upstream 

Ventures. “Successful venture capital investing in Asia 

requires a thorough understanding and familiarity with the 

local business environment, and the ability and experience 

to work with management. It also requires international 

networks and expertise to position, grow and market 

investee companies. We can do all that; we’re not financial 

investors and we’re not afraid to roll up our sleeves and work 

with our companies to propel them to success. ” 

VCs MAKING WAVES 

About 10 years ago, venture capital was virtually 

unheard of in tiny Singapore. But today, Singapore is 

home to more than 150 private equity and VC firms, as 

well as over 50 incubators or VC units that help to 

nurture business start-ups. They hail from such 

countries as Germany, the US and India, and have 

helped manage about $16 billion in venture capital 

funds, benefitting over 700 companies here. 

Upstream Ventures has been instrumental in the 

local VC industry’s growth. In fact, just seven months after 

its conception, the young company became part of an 

international group of six partners under the Startup 

EnterprisE Development Scheme (SEEDS) launched by 

the Economic Development Board (EDB) in 2001. SEEDS, 

a $50 million equity finance fund for start-ups and 

businesses, is aimed at strengthening the working 

16 


ENCORE TECHNOLOGIES – BRIDGING THE DIGITAL DIVIDE 

Established in 

2002, Encore 

Technologies (ETS) 

was a start-up with a 

grand agenda: to 

simplify information 

technology for consumers 

by doing away with the 

one-size-fits-all 

approach, and giving them 

only what they needed at an 

affordable cost. Their product – The Encore 

Simputer, a handheld computing platform – 

supports data and voice communications on Internet 

protocols, enterprise applications access, secure 

transactions and personalised information delivery. 

The company’s big break came in 2003 when they 

caught the attention of Upstream Ventures; they later 

received a financial shot in the arm to qualify for the 

Economic Development Board’s “Growth Financial 

Scheme”. 

Since then, ETS has launched several new 

initiatives, including ETS MyBook, a handheld computer 

touted as an affordable and practical wireless solution 

for schools, and the Retail Interactive Project, an 

innovative solution for customer management in the 

retail segment. The company has also generated 

opportunities for various partnerships designed to 

expand their market reach and boost profitability. Two 

such partnerships are currently in the advanced stages 

of formulation, with many more opportunities looming 

in the future. 

“ETS represents an investment opportunity in what 

we see as the lucrative market for bridging the digital 

divide. Socially responsible investments can prove to 

be very lucrative, and this is particularly true for 

companies targeting the highly underserved markets 

for computing and communications in Asia. Based in 

Singapore, ETS is positioned to capture a large share 

of the markets in India, China and Southeast Asia,” said 

Pierre Hennes, Director, Upstream Ventures. 

arrangements with co-investors, to respond to 

opportunities efficiently and nurture investee companies 

more effectively. 

Singapore is home to more than 

150 private equity and VC firms 

To date, Upstream Ventures has secured and invested 

US$4 million for its first fund, the Upstream Angel Fund. It 

is now in the process of closing its second fund of US$50 

million, the Upstream Pioneer Fund. Singapore’s premier 

location as an Asian hub and the favourable conditions in 

Asia are some of the reasons for doing so. 

TO ASIA… AND BEYOND 

The company believes that conditions in Asia are again 

offering the opportunity for outstanding returns, as Asia is 

increasingly a source of new and diversified technologies 

with global potential. 

Indeed, hands-on venture capitalists with knowledge 

in building a global company will be one of the most 

attractive alternative sources of financing to fund these new 

companies. Given Upstream Ventures’ strong and growing 

network of companies, co-investors, corporate 

partnerships and talent in the region, this company with 

its indefatigable ‘can-do’ attitude seems well positioned to 

be ahead of the competition in the market for value-add 

venture capital. EDB 

For more information on Upstream Ventures visit: 

www.upstreamventures.com, and on Encore Technologies visit: 

www.etssg.com 

For more information on the Startup EnterprisE Development Scheme 

(SEEDS), visit the Startups section of www.sedb.com 

VENTURE CAPITAL: 

WHY SINGAPORE 

Upstream Ventures’ Managing 

Director Carmelo Pistorio offered 

some compelling reasons why 

Singapore has the potential to 

become a hub for VC to thrive. First 

and foremost, Pistorio gave the 

thumbs-up to the Republic’s sound 

infrastructure which he described as equal to, or 

even exceeding that of Europe and the US, such as 

“an efficient legal system, established corporate 

governance and practices, a transparent fiscal 

system and a stable political environment”. 

Singapore’s ideal location also serves as a 

springboard to the emerging powerhouses of China 

and India, as well as the burgeoning Southeast Asian 

financial markets. Pistorio pointed out that these 

“unique deal flow opportunities” open to the global 

VC community are present due to “the combination 

of highly educated professionals and a fast growing 

entrepreneurial ecosystem with access to advanced 

technology and infrastructure”. 

Pistorio also lauded the country’s efforts in 

setting in place tax incentives to encourage the 

presence of VC firms. These include Section 13H of 

the Income Tax Act for approved equity and VC funds, 

as well as the Pioneer Service Incentive of the 

Economic Expansion Incentive Act that serves fund 

management companies. “Although these 

incentives allow venture capital firms to enjoy 

extraordinary tax-related benefits, Singapore 

remains a highly complex, productive society with 

an extremely diversified economy,” he added. 

17 


innovation & 

technology 

TRACK ON TIME 

Logistics can be a hard act to follow. But Sanjay Chakrabarty, founder of 

MobiApps, has good news. One of the company’s products, m-Trak, 

combines Global Positioning Systems, wireless communications and the 

Internet to track vehicles on the move. 

Real time control: the need to know where 

your delivery trucks are, exactly when they 

will arrive, and the condition of the goods, 

is important for anyone worth their salt in 

the logistics business. 

The good news is that this is possible. 

With Global Positioning Systems (GPS) and wireless 

communications technology, Sanjay Chakrabarty, Founder, 

President, and CEO of MobiApps, is offering exactly that: 

the ability for logistic companies to eradicate inefficient 

vehicle routing, ambiguities over bills, rising transportation 

costs, late deliveries, client complaints and changes in 

orders and deliveries. 

SINGAPORE BECKONS 

MobiApps, a company Chakrabarty founded in the US in 

2000, is a provider of hybrid terrestrial and satellite 

technologies for industrial communications; it converges 

terrestrial wireless communications technologies and 

satellite communications to provide ubiquity in coverage at 

a marginal cost. 

The MobiApps headquarters is now in Singapore. Said 

Chakrabarty, “The good infrastructure, large talent pool and 

strong financial grounding are reasons why we’re based 

here. EDB also took a very proactive and innovative 

approach.” He added that Singapore would provide access 

to key growth markets while allowing MobiApps to 

leverage technology development resources in India, as it 

embarks on enhancing its Singapore-based technology 

development capabilities in the coming year. 

The company has received more than US$13 million 

in funding in the past three years from various companies 

including 3i and Singapore Technologies. Among the 

company’s leading customers are 

GM, Hyundai, Ford, Dell, 

SafeExpress and Transport 

Corporation of India (TCIL). The 

company also services the 

Bangalore Metropolitan Transport 

Corporation, a state-owned bus 

company with a fleet of 1,400 buses 

plying the Bangalore area. 

PRODUCTS THAT 

DELIVER 

m-Trak is a mobile fleet 

management system, which 

tracks, manages and monitors 

mobile assets. It integrates 

GPS technology, wireless 

communications and a webservice 

platform to provide 

companies with location-relevant 

18 


m-Trak is a 

mobile vehicle 

tracking system 

which tracks, 

manages and 

monitors mobile 

assets. 

and time-sensitive 

information pertaining to 

their resources. 

Applying global 

positioning and wireless 

technologies to the 

transportation and 

logistics segments 

stretches far beyond 

navigation. Integration of 

mobile devices can 

increase the accuracy 

of traditional vehicle 

m a n a g e m e n t 

applications as the devices provide fleet managers with 

real-time tracking of their vehicles. 

The system can also provide supporting information 

such as keeping tabs on speeding vehicles, unscheduled 

stops, detours and other in-vehicle conditions. 

The MobiApps m-Trak 100 series, for example, 

streamlines the management of fleets by providing reports 

and analyses of vehicle journeys. The m-Trak 100 supplies 

complete journey records for all vehicles for easy planning, 

tracking and scheduling. It gives fleet managers better 

control over operations while enhancing value-added 

service to their customers. 

Other solutions in the m-Trak series include the m- 

Trak 50, a low-cost fleet tracking device, and the m-Trak 

75, a wireless tracking and messaging transceiver. 

The company’s tracking solutions are cost-effective, 

versatile and can be used in a variety of transport industries 

including cash movement and cash handling, chemical, gas 

and fertiliser transport, couriers and perishable cargo movers. 

FORGING AHEAD 

And it gets better. MobiApps is currently developing a 

satellite transceiver the size of a credit card (to be released 

in 2005). It is a breakthrough in satellite-based 

communications for a variety of industrial applications. 

Explained Chakrabarty: “The current transceivers are 

the size of a brick, whereas our product will be the size of 

a credit card thereby drastically changing the economics 

of deployment. The cost of the product and deployment 

could be brought down to 1/8th of the current technology.” 

Besides being cost-effective, the small device will also 

be easy to install. Furthermore, it consumes only 1/10th 

the power of the current technology. 

Moreover, the compact design of the product allows 

industrial users to embed the satellite modem on any 

equipment to enable the transmission and reception of low 

bandwidth information. It is not limited to terrestrial 

services as the transceiver operates over global satellite 

telecommunication company ORBCOMM’s low-earth orbit 

satellite network. 

“Satellite transceivers allow two-way data 

communication anywhere in the world. For example, a 

person can track and monitor his vehicle even if it is passing 

through a remote mountainous region in another part of 

the world,” Chakrabarty said. 

There are currently hundreds of thousands of satellite 

modems operating in the world. With the introduction of 

the MobiApps satellite modem on a chipset – m100 OEM 

Subscriber Communicator – the company is expecting to 

sell more than a million modems over the next few years. 

The company’s India development centre is involved 

in the baseband and digital design of the transceiver while 

the US centre is involved with radio frequency integrated 

chip (RFIC) design. This continuous innovation and research 

has resulted in the company’s application for four patents 

for various technologies of the transceiver. 

“We expect to have the advantage of offering a lowcost 

compact solution, which could drive volumes in the 

market,” Chakrabarty said. MobiApps TM plans to license 

the technology to original equipment manufacturers 

(OEMs) across the world. The successive generation of this 

design can lead to substantial enhancements, and 

MobiApps TM expects Singapore to provide the base for 

creating such breakthroughs. 

MobiApps TM is also working on a transceiver that is a 

hybrid of satellite and terrestrial GSM or CDMA 

communication that will be launched in end-2005. 

Meanwhile, the company is looking to set up a development 

centre for product engineering in Singapore, integrating 

its expertise from around the US, India and Singapore to 

substantially accelerate its product design and engineering 

competencies. EDB 

For more information on MobiApps, visit: www.mobiapps.com 

For more information on EDB’s Headquarters Services, visit: 

Industry Opportunities/Headquarters Services section of www.sedb.com 

19 


focus 

GATEWAY 

TO ASIA AND THE WORLD 

More global companies are using Singapore as a springboard for their 

various operations, further boosting the country’s status as an international 

hub across a variety of sectors. 

With a population of three billion and 

an estimated economic growth rate 

of seven per cent per annum, the 

Asia-Pacific is one of the world’s 

fastest-growing regions. Singapore 

is also strategically situated in the 

heart of the region, playing host to 

some of the world’s most prominent industry movers and 

shakers. Among these are 27 international nongovernmental 

organisations, seven international 

organisations and 4,500 professional services firms in fields 

such as audit/accounting (800 firms), management 

consulting (2,000 firms), and legal services (60 offshore law 

firms). There are also numerous listed companies in fields 

spanning market research, advertising and public relations, 

as well as human capital services. Companies looking for 

business partners to jumpstart their activities can tap into 

a strong network of business linkages, with a selection of 

more than 7,000 MNCs across all sectors. 

With its modern, world-class facilities, it is not 

surprising that Singapore is one of the top five cities in the 

world for holding conventions/conferences. The city-state 

is also home to a vibrant education industry that boasts a 

variety of local institutions of higher learning and 11 

renowned foreign universities – providing endless 

possibilities for collaboration in research. Another thriving 

local sector is infocomms technology. Some 12,000 

20 


software developers are based in the country, and 69 of 

the global top 100 IT companies have substantial operations 

here as well. Of equal importance is Singapore’s stature 

as an international financial hub, with many companies 

offering a broad range of products and services such as 

trade financing, foreign exchange, derivatives products, 

capital market activities and so on. With the world’s best 

airport and busiest container transshipment port, 

Singapore has also earned a stellar reputation as a premier 

logistics hub. 

HUB HAVEN 

Chemicals Hub 

Ranked amongst the world’s top three countries in oil trade, 

Singapore is a global hub for oil refining and is Asia’s largest 

petrochemical manufacturing centre. Jurong Island, the 

country’s dedicated and vertically integrated chemicals hub, 

is home to the world’s biggest names in oil & gas and 

petrochemicals. Specialty chemicals are not left out of the 

value chain either, with an assortment of key players 

dealing in flavours and fragrances, electronic chemicals, 

materials and gasses, and lubricants and fuel additives. 

Maintenance, Repair and Overhaul (MRO) Hub 

Singapore is Asia’s largest MRO centre. With some 58 

foreign and homegrown aerospace companies providing a 

comprehensive spectrum of capabilities for airframe, 

engine and avionics repair and overhaul, and component 

repair, the sector accounts for about six per cent and 20 

per cent of the global and Asian MRO markets respectively. 

Biomedical / Pharmaceuticals Hub 

Accelerating Singapore’s efforts to establish itself as a fullblown 

biomedical hub is the country’s spanking new 

Biopolis, an interconnected, 18.5- 

hectare nucleus for R&D, 

manufacturing and healthcare 

delivery. Biopolis will serve as a 

vibrant work and play site to over 

1,500 international scientists in both 

the public and private sectors. 

Singapore is 

strategically 

situated in the heart 

of the region, 

playing host to 

some of the world’s 

most prominent 

industry movers 

and shakers. 

The presence of key industry players in Singapore, 

including the world’s top six pharmaceutical companies, 

further underscores the Republic’s vision to be the Biopolis 

of Asia – an epicentre for biomedical sciences 

manufacturing, R&D, clinical development and 

management, drug discovery, critical research and HQ 

activities. 

Companies with active pharmaceutical ingredients 

(API) manufacturing capabilities in Singapore include 

Pfizer, Merck Sharp & Dome, GlaxoSmithKline and 

Schering Plough. These MNCs have 

their operations based in the Tuas 

Biomedical Park, a sprawling tract of 

land earmarked for industrial use. 

High Value Manufacturing Hub 

Manufacturing continues to be a 

strong growth engine of Singapore’s 

economy – and it continues to 

perform well. The Government is on 

track to target the doubling of 

manufacturing output in the next 15 

years. Electronics continues to be the 

main contributor to manufacturing 

FAI, accounting for 56 per cent of total 

manufacturing FAI in 2003. Other clusters that have helped 

steer manufacturing to its impressive growth levels include 

chemicals, biomedical, semiconductors and infocomms 

and consumer electronics. 

Buoyed by skilled and multi-disciplinary manpower, 

Singapore’s varied and dynamic value manufacturing hub 

spans the entire value chain, from R&D, development, 

production, commercialisation and supply chain 

management, to post sales. 

Indeed, manufacturing and 

technology giants such as 

Seagate and STMicroelectronics 

have tapped into this intelligent 

business environment to grow 

their R&D, design, product 

development, manufacturing, 

marketing and other HQ 

functions. Seagate, in particular, 

recently revealed its new 1-inch 

hard disc drive, which was 

entirely designed, developed and 

manufactured locally for global 

export. 

Singapore has further upped 

its stake as a world-class 

manufacturing hub, by being at 

the forefront of emerging 

technologies such as 

nanotechnology, photonics, 

micro-electromechanical 

systems and industrial IT. This 

puts the country in good stead to 

emerge as an even stronger 

manufacturing base for hightech, 

value-added production. 

21 


Regional Professional Services Hub 

Many of the world’s top names in professional services are 

gearing up to take the region by storm – and one of their 

strategies is to anchor their operations right here in 

Singapore. 

In legal services, the areas of arbitration, regional law 

and intellectual property have undergone new 

developments to cater to the growing needs of the region. 

Eight of the top 20 international law firms in the world, 

including Baker & McKenzie, Jones Day and Linklaters, 

already have a significant presence here. The Big Four 

accounting firms – PricewaterhouseCoopers, Ernst & 

Young, Deloitte & Touche and KPMG; and top global 

management consulting giants like Accenture, AT Kearney, 

Bain and McKinsey, have also made Singapore their base 

for managing their business in the Asia Pacific. 

In the area of human capital, SHL Group has located 

its Asia-Pacific HQ in Singapore, whilst the US-based 

Center for Creative Leadership and the Gallup Organization 

have both set up their first Asian campuses here to 

‘Asianise’ their curriculum and provide customised training 

in leadership development. In advertising and public 

relations, the world’s four largest marketing 

communications global conglomerates – Omnicom, 

Interpublic, WPP and the Publicis Groupe – are represented 

in Singapore through various network agencies. Among 

those with Asia-Pacific HQs in Singapore are Millward 

Brown, a global market research organisation, 

international market research giant Synovate and market 

research leaders like AC Nielsen, Taylor Nelson Sofres and 

GfK. 

Supply Chain Management Hub 

To date, more than 3,000 international and local third-party 

logistics players, distributors, air-sea carriers and SCM 

technology companies are tapping into the island’s 

excellent connectivity and communications infrastructure 

to boost their businesses. In 2003, Changi Airport handled 

some 1.6 million tonnes of air cargo and the container ports 

handled a record 18.4 million TEUs (20-foot equivalent unit) 

of containerised cargo. Singapore is also the world’s busiest 

port, with some 400 shipping lines to 700 ports worldwide. 

Singapore’s 26-hectare Airport Logistics Park (ALPS) 

allows for third-party logistics players to conduct valueadded 

integrated logistics and regional distribution 

activities in a free trade zone environment to accelerate 

the product-to-market cycle. Additionally, the 80-hectare 

Banyan LogisPark on Jurong Island services the regional 

transshipment, break-bulk and distribution needs for 

chemical companies. And to bring existing IT infrastructure 

up to speed, the Singapore government will invest up to 

$50 million over five years to consolidate existing IT systems 

in the trade and logistics platform into a single integrated 

IT platform, thus enhancing cost effectiveness, increased 

competitiveness and overall efficiency in the logistics 

industry. 

Global Schoolhouse 

About 50,000 foreign students are currently studying in 

Singapore, and by 2012, the country hopes to draw an 

additional 150,000 students to its shores. One way 

Singapore is doing that is by positioning itself as a “Global 

Schoolhouse” – essentially, a world-class education hub 

that provides top-notch learning programmes geared 

SINGAPORE’S FTA NETWORK 

Concluded 

• United States 

• Japan 

• European Free Trade Association 

• Australia 

• New Zealand 

• Hashemite Kingdom of Jordan 

• ASEAN 

Ongoing 

• People’s Republic of China (ASEAN-CHINA) 

• India 

• Canada 

• Republic of Korea 

• P3 (New Zealand, Chile, Singapore) 

• Sri Lanka 

• Panama 

• Egypt 

• Bahrain 

22 


towards all levels, from pre-school to post-graduate 

institutions. 

Being at the crossroads of Asia, Singapore combines 

the best of both the Eastern and Western worlds, which 

serves as a strong magnet for candidates in search of an 

enriching learning experience. To date, the Lion City is home 

Ian Wright, host of Globe Trekker, 

Discovery Travel & Adventure 

to 11 leading foreign universities in Singapore, among them 

INSEAD (France), Johns Hopkins University (US) and the 

University of New South Wales (Australia). 

Broadcast Hub 

With 17 international cable and satellite broadcasters based 

in Singapore, including HBO, ESPN, MTV, Disney and 

Discovery, Singapore has grown to become the broadcast 

hub in Asia. Come 2005, media companies will also enjoy a 

nucleus of their very own – the Fusionpolis – which brings 

like-minded enterprises and professionals together in one 

dynamic plug-and-play environment. Presently, 

Singapore’s arts, media and design clusters contribute 

about $10 billion to the economy and this is expected to 

double by 2012. EDB 

For more information on Singapore’s business environment, visit: 

Why Singapore section of www.sedb.com 

SINGAPORE’S PRO-BUSINESS ENVIRONMENT 

COMPETITIVE TAX REGIME, which offers: 

• Among the lowest corporate tax rates of 20 per cent 

and individual tax rates (22 per cent for top income 

tier, to be reduced to 20 per cent in coming years) in 

the region. 

• Exemption of tax on foreign-sourced dividends, 

branch profits and services income from jurisdictions 

with headline tax rates of at least 15 per cent. 

• No withholding taxes on dividends. 

• No tax on capital gains. 

• Automatic write-down for IP acquisition. 

• Unilateral tax credits for income streams including 

services income and royalties from all non-treaty 

countries. 

• No tax on all foreign-sourced personal income 

remitted to Singapore by resident individuals. 

ACCESS TO MARKETS, which includes: 

• A clientele base of over 2.8 billion professionals 

within a seven-hour flight radius. 

• A domestic market of 7,000 MNCs, 1,200 Chinese 

and 1,500 Indian companies and numerous 

homegrown ones. 

• Free Trade Agreements (FTA) provide increased 

market access, protection of intellectual property 

and investments, and mutual recognition of 

professional qualifications. Upon successful 

conclusion of ongoing FTA negotiations with 

countries inside and outside of Asia, Singaporebased 

companies will have access to 60 per cent of 

the world’s total GDP. 

A LAUNCHPAD AND TESTBED FOR INNOVATION, 

which offers access to: 

• A multi-cultural Asian community that is an excellent 

source of market intelligence and a hothouse for 

innovation in unique Asian products and offerings. 

• A strong brand name and intellectual property 

protection regime ideal for championing new 

standards and codes of practices for the region. 

• Partnership opportunities with academic institutions 

(e.g. 11 world-class foreign universities), research 

bodies and business associations. 

AN IDEAL PLACE TO LIVE 

• English is the lingua franca and most of the 

population is effectively bilingual. 

• Singapore’s cosmopolitan society and good quality 

of living is attractive to top regional practice leaders. 

Singapore is also home to over 100,000 professional 

expatriates. 

• Singapore has a lower cost of living compared to 

other Asian cities such as Tokyo, Osaka, Seoul, 

Taipei, Hong Kong (source: Mercer 2004). 

INTELLECTUAL PROPERTY (IP) MANAGEMENT 

CENTRES 

Singapore’s strong legislative and IP enforcement 

policies make it ideal for such activities as rights 

patenting, IP audit, valuation, enforcement and 

licensees sourcing. It is a member of IP-related 

conventions and organisations such as the Paris 

Convention, Berne Convention, Madrid Protocol, Patent 

Cooperation Treaty, Budapest Treaty, World Economic 

Forum and the Agreement on Trade-Related Aspects 

of Intellectual Property Rights (TRIPS), which provide 

added protection for companies seeking to maximise 

their IP potential. 

Within Singapore, there are institutions such as the 

Intellectual Property Office of Singapore, Singapore 

International Arbitration Centre, Composers & Authors 

Society of Singapore, Recording Industry Association 

(Singapore), and Singapore Mediation Centre. 

These initiatives encourage more IP-based 

companies to invest in and protect their intellectual 

assets from Singapore. Companies further benefit from 

new IP-friendly tax policies like an automatic writing 

down allowance for IP acquisitions, tax deductions for 

patent costs, and unilateral tax credits for royalty 

income. 

23 


focus 

MECHANICAL ENGINEERING: 

PILLAR OF STRENGTH 

The foundation 

for Singapore ‘s 

manufacturing 

excellence. 

Astrong pillar of Singapore’s economy, 

manufacturing accounted for 26 per cent 

of the Gross Domestic Product 

(GDP) in 2003. Its success is due to strong 

supporting sub-sectors, amongst them, 

mechanical engineering. The vital backbone 

of a range of industries spanning 

electronics, transport, chemicals and even medical 

equipment, mechanical engineering is a discipline of 

engineering that involves the design, operation and 

construction of technology and equipment. 

In 2003, mechanical engineering enjoyed an output of 

$25 billion, a combined value-add of $9 billion, and 

contributed to 17 per cent of total manufacturing output 

and 24 per cent of the value-add of Singapore’s 

manufacturing sector (see chart). 

WHERE MANUFACTURING 

THRIVES 

Singapore’s reputation for manufacturing excellence 

remains a lure for international investments, particularly 

in the area of such higher value-add products as chip 

design, advanced displays and consumer electronics like 

DVD recorders and flat-panel TVs. 

These increasingly sophisticated manufacturing 

activities require the expertise of higher skilled workers. 

In fact, Singapore’s labour force was ranked first in the 

world, according to a 2003 Business Environment Risk 

Intelligence (BERI) report. Also, nearly 30 per cent of the 

country’s 2.15 million workers are equipped with tertiary 

or diploma educational qualifications. And, crucial to today’s 

knowledge intensive economy, close to 20 per cent of the 

35,000 university and polytechnic graduates each year have 

industry-relevant information and communications 

technology or related training. 

To serve the changing needs of the industry, Singapore 

is focussing on moving up the manufacturing value chain 

by harnessing higher automation and advanced 

manufacturing processes, as well as undertaking more 

research and development to boost its efforts. By 

embarking on this strategy, the city-state is positioning 

itself as a prime destination for enterprising companies 

looking to tap into and create new businesses and 

opportunities. Last year, manufacturing fixed asset 

investments (FAI) in Singapore totalled an impressive $7.51 

billion. Leveraging on Singapore’s manufacturing strengths 

in advanced technology and services, these companies will 

be able to create and manage new markets, products and 

processes, technologies and applications. 

“Investors continue to see Singapore as an attractive 

investment destination because of our speed, extensive 

connectivity, relevant skill-set and sound infrastructure,” 

said Tan Choon Shian, EDB Director, Electronics and 

Precision Engineering. 

Strong mechanical engineering ensures successful 

engineering sectors. Precision engineering, a key segment 

of mechanical engineering, raked in $500 million in 

manufacturing FAI. 

Transport engineering projects in 2003, for example, 

contributed $206 million in fixed assets investments 

commitments. The Republic is responsible for 25 per cent 

24 


of Asia’s maintenance repair and overhaul (MRO) output – 

or six per cent globally – in the aerospace industry. Major 

players like Pratt & Whitney, Rolls Royce and Hamilton 

Sundstrand conduct significant MRO operations in 

Singapore. Homegrown giants such as Singapore 

Technologies Aerospace and SIA Engineering Company 

have also consistently ranked in the global top three in 

terms of MRO service manhours. Last year, the aerospace 

industry accounted for an annual output of $3.8 billion. 

For the marine and offshore engineering industry, 

Singapore boasts diverse mechanical engineering 

strengths to boost activities in ship repair and conversion 

and construction of offshore structures. Again, 

international heavyweights such as MTU, MAN B&W, Deutz 

and Wartsila have pledged their confidence in Singapore 

by establishing regional service centres here for their 

marine engine manufacturing operations. They are 

supported by the country’s shipyards, amongst them 

Keppel Shipyard and Sembawang Shipyard, which possess 

skilled manpower, resources and facilities. Oil and gas 

(O&G) is another thriving area of the marine and offshore 

engineering sector. And with Singapore making its global 

mark as a choice equipment manufacturing and services 

locale, it is no wonder that seven of the top international 

O&G equipment companies carry out manufacturing 

operations here. With this beehive of activity, the marine 

and offshore engineering industry delivered $5 billion in 

output in 2003. 

Land transport, another sub-sector of transport 

engineering, generated $817 million in output last year. 

Diverse manufacturing activities that span engine control 

modules to air-con compressors drive the growth of the 

industry, with at least 25 principal original equipment 

manufacturers and Tier 1 suppliers, as well as 15 

automotive companies utilising Singapore as a key 

manufacturing base. 

In 2003, mechanical 

engineering enjoyed an output 

of $25 billion and a combined 

value-added of $9 billion. 

Transport engineering aside, the precision engineering 

industry also rests heavily on strong mechanical 

engineering capabilities to support its two major subsectors: 

design and assembly of machinery and systems, 

and precision modules and components. 

The diversity of Singapore’s precision engineering 

fuelled by mechanical engineering, has scored the country 

global leadership positions in the following: 

- 30 per cent of the world’s disc drives 

- 50 per cent of the world’s photo flash lamps 

- 40 per cent of the world’s wirebonding machines 

- 60 per cent of the world’s auto-insertion machines 

- 10 per cent of the world’s refrigeration compressors 

Last year, the precision engineering industry 

accounted for $16.8 billion worth of output. The sector also 

makes up about 2.5 per cent of Singapore’s GDP. This figure 

is poised to soar, as more efforts are being channelled to 

strengthening the country’s already stellar reputation as a 

top-notch precision engineering hub for manufacturing 

solutions and high value-added components for the global 

market. 

General 

Manufacturing 

Industries 

9% 

MANUFACTURING OUTPUT 2003 

VALUE-ADD 

(Value-add is the resulting increase in the value of goods and services from the production 

activities of a company. It is the expected contribution to GDP per annum when the 

project is fully implemented.) 

General 

Manufacturing 

Industries 

11.3% 

Mechanical 

Engineering 

17% 

Mechanical 

Engineering 

24.3% 

Electronics 

39.9% 

Electronics 

31.4% 

Chemicals 

26.4% 

Chemicals 

14.1% 

Source: Economic Development Board, 2004 

POISED FOR GROWTH 

Indeed, investors hold Singapore’s broad mechanical 

engineering capabilities in high regard. Whether it is 

production engineering, quality tools and methods, 

automation and rapid prototyping, e-manufacturing, energy 

management, Computer Numerical Controlled high-speed 

machining technology or Computer Aided Design and 

Computer Aided Manufacturing, Singapore’s savvy 

mechanical engineers possess the right knowledge, skills, 

flexibility and adaptability to keep up-to-date in demanding 

and ever-evolving fields where the discipline is required. 

Aided by some of the best facilities in the region, these 

professionals are able to consistently perform and deliver 

in a variety of fields they are engaged in. 

Biomedical 

Manufacturing 

7.6% 

Biomedical 

Manufacturing 

18.8% 

For more information on EDB’s Mechanical Engineering Industry visit the 

Industry Opportunities/ Electronics and Precision Engineering section or 

Logistics and Transport Engineering section of www.sedb.com 

EDB 

25 


focus 

‘GOING 

GLOBAL’ 

WITH SINGAPORE- 

BASED EDUCATION 

With an emphasis on diverse and quality 

educational services, Singapore is pulling out 

all the stops to position itself as a world-class 

education destination. 

The writing is on the wall. Singapore’s education 

industry, singled out as a key growth driver, is 

gearing up to grab a larger slice of the world 

education market, which is worth a whopping 

US$2.2 trillion. 

Today, at least 1.8 million international 

students pursue higher education outside their home 

country. Forty-five per cent of these students are from Asia, 

mostly from China, India, Japan, South Korea and Malaysia. 

And judging by the growing importance of education in the 

current knowledge-based economy, this figure looks set 

to soar even further. Analysts forecast that the global 

demand for international higher education will exceed 

seven million students by 2025, with 70 per cent of this 

future influx dominated by Asia. In anticipation of this, 

Singapore intends to welcome a large portion of the Asia 

market to its shores by positioning itself as a world-class 

education hub, one that is 

home to a variety of 

renowned international 

Institutes of Higher Learning 

(IHLs). 

Currently, about 

50,000 foreign students are 

pursuing their education 

here. The country is looking 

to double or triple this 

population, by attracting at 

least an additional 100,000 

more full fee-paying 

international students and 

100,000 more corporate 

executives to Singapore by 

the year 2012. 

To do so, Singapore 

will be banking on its 

proximity to the pulse points 

of Asia, its strong global 

networks, high standards of living as well as progressive 

East-meets-West culture. “Our objective is to make 

Singapore a ‘Global Schoolhouse’ providing educational 

programmes of all types and at all levels from pre-school 

to post-graduate institutions, and that attracts an 

interesting mix of students from all over the world,” 

stressed Foreign Affairs Minister George Yeo. 

Currently, about 50,000 

foreign students are pursuing 

their education here. 

LAYING THE FOUNDATION 

A three-pronged initiative has been set in place to realise 

Singapore’s vision of becoming a full-fledged global 

schoolhouse. “First, we need to attract good foreign 

institutions into Singapore. Second, we need to develop our 

own local institutions and enterprises. And, third, we need 

to bring in large numbers of international students,” said 

Yeo. 

Some of these measures are already well underway. 

In 1998, the Economic Development Board launched the 

World-Class University programme to attract up to 10 

leading universities to establish a significant presence here 

within the next 10 years. The goal was reached five years 

ahead of schedule in 2003 when the US-based Stanford 

University teamed up with the local Nanyang Technological 

University to offer Master of Science (MS) and Doctorate 

programmes in environmental science and engineering. 

Currently, Singapore plays host to 11 world-class 

universities (see box story for list). On 25 October 2004, 

the Georgia Institute of Technology (Georgia Tech) and the 

National University of Singapore (NUS) signed a 

26 


educational excellence in the Asian region,” said Professor 

John Ingleson, Deputy Vice-President, Chancellor 

(International) UNSW. Ingleson added that UNSW’s first 

overseas venture into Singapore heralds the next stage in 

the internationalisation of the university. UNSW Singapore 

is scheduled to open its doors in 2007 with an intake of 

about 15,000 students, of which at least 70 per cent will be 

foreign. When fully operational, the university is expected 

to pump about $500 million a year into the local economy. 

Complementing the foreign universities are the three 

home-grown universities. National University of Singapore 

(NUS), Nanyang Technological University (NTU) and 

Singapore Management University (SMU) are quickly 

gaining a reputation for quality education worldwide. This 

year, NUS welcomed 5,600 freshmen from 71 different 

countries, while SMU reported a 10 per cent increase in 

international student applications from last year. 

Memorandum of Understanding to kick off the second 

phase of The Logistics Institute (TLI) – Asia Pacific. Under 

the MOU, Georgia Tech will continue to provide its world 

renowned logistics knowledge and expertise for the next 

five years. 

Singapore made further headway in its drive to foster 

a vibrant intellectual climate when Universitas 21 Global – 

a consortium of 16 well-known universities and Thomson 

learning – established its global 

headquarters here last year. Not only is the 

online university the first of its kind in Asia, it 

adds another dimension to Singapore’s global 

schoolhouse vision – e-learning. Dr Mukesh 

Aghi, Universitas 21 Global CEO, said the 

university “aims to [combine] excellence and 

expertise of traditional on-campus teaching 

with an innovative and flexible online solution, 

with the end result being a world-class 

branded degree”. 

TOWARDS A BRIGHTER FUTURE 

Having anchored the tertiary segment, attention has now 

shifted to other areas like specialty schools, boarding 

schools and educational companies. These will further 

develop the local education sector by providing a wider and 

more comprehensive spectrum of learning opportunities. 

With the development of the private education market, the 

total education sector is expected to grow to about five per 

cent of the economy in the next decade or so, compared to 

the current 3.6 per cent. 

Recently, new initiatives for the Education Excellence 

Framework were announced to boost the Global 

BLAZING NEW TRAILS 

The latest addition to Singapore’s vibrant 

intellectual community, the University of New 

South Wales (UNSW), gives a major boost to 

the global schoolhouse strategy. Unlike the 

other foreign universities, which are mainly 

joint campus operations, UNSW Singapore, 

an A$100 million (A$1=$1.20) research and 

teaching campus with a strong focus on 

science and technology, will be wholly-owned 

and independently run by the leading 

Australian university. 

“We are honoured that the Singapore 

government has chosen UNSW to spearhead 

its vision to develop Singapore as a hub of 

27 


Schoolhouse Programme and to make Singapore a more 

attractive location for international students. These 

initiatives focus on three components for the private 

education organisations (PEOs): academic excellence, 

organisational excellence and good student protection and 

welfare practices. 

For academic excellence, an accreditation council will 

be set up by the Ministry of Trade and Industry by the first 

quarter of 2005 to accredit institutions for their capabilities 

to deliver quality programmes. 

The second component of the Framework focusses on 

enhancing the organisational excellence of the private 

schools by encouraging them to upgrade. This is being done 

through the Singapore Quality Class for Private Education 

Organisation (SQC for PEO), initiated by EDB and SPRING 

Singapore (Standards, Productivity and Innovation Board) 

last year. Based on criteria which are benchmarked against 

internationally recognised standards, the award aims to 

encourage the private schools operating here to step up 

their business processes and compete for a larger market 

share in the region. Sixteen private companies, including 

AEC Edu Group Pte Ltd, Informatics Group (Singapore) Pte 

Ltd, Singapore Institute of Management and Management 

Development Institute of Singapore were recently conferred 

the prestigious SQC for PEO status. 

The third component focusses on PEOs adopting good 

practices in student protection and welfare through the 

CaseTrust for Education scheme. The CaseTrust for 

Education, customised by the Consumers Association of 

Singapore, will ensure that proper systems and practices 

have been put in place to look after the welfare and interests 

of international students in Singapore. This includes the 

Student Protection Scheme. 

“Having more quality foreign and local private 

education players will bring about creation of new 

knowledge and a variety of offerings via competition,” said 

Teo Ming Kian, Chairman EDB, “This will bring us a step 

closer towards being an attractive education hub.” EDB 

For more information on EDB’s Education Services visit the Industry 

Opportunities/Education Services section of www.sedb.com 

WORLD-CLASS FOREIGN 

UNIVERSITIES IN SINGAPORE 

1. Georgia Institute of Technology (US) 

2. INSEAD (France) 

3. Johns Hopkins University (US) 

4. Massachusetts Institute of Technology (US) 

5. Shanghai Jiao Tong University (China) 

6. Stanford University (US) 

7. Technische Universiteit Eindhoven 

(The Netherlands) 

8. Technische Universität München (Germany) 

9. The Wharton School of the University Of 

Pennsylvania (US) 

10. The University of Chicago Graduate School of 

Business (US) 

11. University of New South Wales (Australia) 

28 


The Economic Development Board (EDB) is Singapore’s lead 

agency responsible for planning and executing strategies to 

sustain Singapore’s position as a global hub for business and 

investment. 

We work closely with local and foreign companies across a diverse 

range of activities in both manufacturing and services to help 

them move towards higher value-creating operations in 

an increasingly knowledge-based and innovation-driven 

environment. We also encourage companies to use Singapore 

as a headquarters and total business centre to manage their 

global or regional functions to service their global or Asia-Pacific 

operations. 

Head Office: 

250 North Bridge Road #28-00 

Raffles City Tower 

Singapore 179101 

Tel: (65) 6832-6832 

Fax: (65) 6832-6565 

Website: www.sedb.com 

North American Offices: 

Boston, Chicago, Dallas, 

Los Angeles, New York, 

San Francisco, Washington, DC. 

European Offices: 

Frankfurt, London, Milan, 

Paris, Stockholm. 

Asian Offices: 

Beijing, Shanghai, Jakarta, 

Mumbai, Osaka, Tokyo. 

Publication Team 

Editorial Adviser: 

Mavis Kuek (mavisk@edb.gov.sg) 

Editorial Team: 

Patricia Ng (patricia_ng@edb.gov.sg) 

Anne Koh (annekoh@edb.gov.sg) 

Cathy Tan (cathy_tan@edb.gov.sg) 

Editorial Contributor: 

Cheryl Sim (cheryl@paperclip.com.sg) 

Art Director: 

Leslie Neo (leslie@paperclip.com.sg) 

Project Manager: 

Khim Yap (khim@paperclip.com.sg) 

Singapore is today a “Global Entrepolis” – a unique marketplace 

where deals are made; funds are raised; creative ideas are 

exchanged and realised; new innovative enterprises 

incorporated; and partnerships forged. EDB acts as a catalyst 

and facilitator to ensure a thriving “enterprise ecosystem” in 

Singapore. We encourage innovation and entrepreneurship by 

helping to create an environment which is conducive for startups 

and companies of all sizes to interact with each other, with good 

corporate governance practices and where intellectual property 

is protected. 

For more information on how EDB can help in your business 

and investment, please visit www.sedb.com. 

Publishing Consultant: Paperclip Communications Pte Ltd 

Please email your comments/feedback to: annekoh@edb.gov.sg 

This material is circulated by the Singapore Economic Development Board, 55 East 59th Street, New 

York, NY 10022, which is registered under the Foreign Agents Registration Acts as an agent of the 

Government of the Republic of Singapore. This material is filed with the Department of Justice where 

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© Singapore Economic Development Board 

Currency in Singapore Dollars, unless otherwise stated. Current exchange rate US$1.00 = S$1.64

Singapore Investment News, Nov/Dec 2004 - CordLife

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