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How do you look at the Indian infrastructure
scenario and the investment opportunities
that it offers?
With India requiring significant investments
in infrastructure in the coming years,
we see many opportunities for Singapore
investors and developers to work with
India in projects such as building
of ports, airports, industrial, residential
and commercial infrastructure to drive
India's next stage of growth.
Could you give us details
about your own country's infrastructure
scenario, strengths and ability to
participate in India's infrastructural
development?
Singapore is one of the best-connected
countries in the world, with efficient
and reliable sea, air and telecommunications
links contributing to its pro-business
environment. Singapore continues to
retain her position as the world's
busiest port, with container traffic
for 2007 hitting 27.9 million TEUs
(twenty foot equivalent units), a
12.7 percent increase from 2006. The
Singapore Changi Airport is recognized
as one of the best airports in the
world with over 250 awards under its
belt, and 80 airlines serving over
180 cities in more than 50 countries.
Singapore also has sound telecommunications
infrastructure in place, with facilities
such as internet, telephone and fax
easily accessible to businesses and
individuals.
With India requiring expertise in
infrastructure to meet its economic
demands, and Singapore companies having
strong capabilities in building of
industrial estates, airport and seaport
facilities, we see great synergy and
potential for collaborations in these
areas.
Some examples of existing collaborations
between Singapore and Indian companies
include the following:
• Changi Airports International
engaged by Bengal Aerotropolis Projects
for a Technical Services Agreement
in India's first privately owned airport,
part of the US$2.5 billion Durgapur
Aerotropolis in West Bengal. (Feb
08)
• Sembcorp Marine invests S$29M
for a 3.31% stake in Pipavav Shipyard
in Gujarat. (Oct 07)
• APL launched a container freight
rail service connecting Delhi and
Mumbai. The service, APL IndiaLinx,
is a joint venture between APL and
Hindustan Infrastructure Projects
and Engineering (May 07)
• Ascendas signs two joint venture
agreements with Maharashtra Industrial
Development Corporation (MIDC) and
Maharashtra Airport Development Company
(MADC) to develop two IT parks in
Pune and Nagpur respectively. (Apr
07)
• ST Airport Services forms
a JV in Mar 07 with Bharat Petroleum
Corporation to provide refueling services
at the future Bangalore International
Airport (Mar 07)
What are the areas your country/entrepreneurs
could identify as opportunities?
Some opportunities for collaboration
between Singapore and Indian companies
include the development of infrastructure
services (e.g. airports and ports),
transport and logistics linkages,
development of residential townships,
commercial and office space, manufacturing
of industrial products and retail.
Besides offering assistance to Singapore
companies that are keen to venture
into India, we [International Enterprise
(IE) Singapore] also welcome Indian
companies which are seeking possible
collaborations with Singapore companies
to approach us. Currently, Singapore
has three overseas offices in India
Chennai, Mumbai and New Delhi. More
information can be found on our website
www.iesingapore.com
Infrastructure is essential
for manufacturing activity and these
are two sides of the same coin. India's
vast and diverse manufacturing activities
range from cement to steel, from chemicals
to pharmaceuticals. Please give us
your own country's strengths in the
areas of manufacturing and in which
of these that your country/entrepreneurs
are keen to participate in joint ventures?
Manufacturing accounts for about one-quarter
of Singapore's GDP. Some of her key
strengths include precision engineering
and electronics manufacturing (for
example the telecommunications and
automotive sectors). Singapore is
also a petrochemical and pharmaceutical
manufacturing hub, presenting many
opportunities for collaborations between
Singapore and Indian companies.
For instance, Singaporean-based precision
engineering companies such as Juken,
First Engineering and Makino Asia
have manufacturing operations in India
to support the automotives components
and electronics manufacturing operations
there.
India's requirements are vast
in telecommunication services, considering
its population of one billion plus
and the great spread of its cities
and villages. And this requires vast
infrastructure. What kind of participation
your country will be interested in
this crucial sector?
Singtel, together with Bharti Telecommunications,
jointly developed a 3,100-km cable
link between Singapore and India,
which began commercial operations
in 2002. This is just one example
of possible collaborations between
Singapore and Indian companies in
this sector.
India is already a leader
in IT and IT-Enabled Services. This
is an area where India can offer joint
venture opportunities. This again
calls for huge infrastructure as well
as participation of many players.
What kind of role your country would
like to play in this regard?
Singapore boasts over 90,000 sq m
of data centre space offering world-class
security for business continuity and
disaster recovery, server and data
centre consolidation and data storage
services. There is potential for Indian
IT companies to locate offshore data
and recovery centres in Singapore
due to its close proximity and extensive
linkages.
On the other hand, given Singapore's
multi-cultural and vibrant landscape,
Singapore speaks the language, knows
the culture and understands the economics
of the market in India. In addition,
with Singapore's infocomms industry
extensive experience with markets
throughout Asia, Singapore companies
are able to share relevant experiences
and better engage their partners in
the region, which includes India.
Yet another area concerns
financial services, from banking to
merchant banking in order to raise
the required capital from domestic
and international markets. Where does
your country fit in?
Singapore is one of the Asian leaders
in the financial sector, with a strong
local bank base complemented by a
number of foreign banks regionally
headquartered here. There are more
than 700 financial institutions in
Singapore.
There is potential for Indian companies
seeking a dual listing to raise funds
through an IPO on the Singapore Exchange.
With the recent listing of the Ascendas
India Trust, Singapore is looking
to encourage the development of India-centric
infrastructure and property REITS
to raise funds in the country.
There are certain segments
of industry in which India is emerging
as a global manufacturing hub. These
include pharmaceuticals, automobile
components, R&D in biotechnology,
among others.
Which of these areas will interest
your country?
We see opportunities for collaboration
between Singapore and Indian companies
in the area of manufacturing, including
electronics and precision engineering,
as well as pharmaceuticals.
Healthcare and medical tourism
go with the development of pharmaceuticals
industry and India has emerged as
leader in this regard. Could you talk
about your own country's interest
in this field?
With Singapore being one
of the world's leading pharmaceutical
locations, Singapore healthcare products
are increasingly in demand beyond
our shores. In particular, domestic
exports of pharmaceuticals has increased
its share of total Singapore exports
from 9.9% in 2005 to 11.3% in 2006.
Within the pharmaceutical sector,
exports jumped 24% to almost S$19
billion in 2006, as compared to 2005.
Among the strengths of Singapore healthcare
products companies include quality
manufacturing (i.e. stringent quality
management, universally recognized
certification standards), having unique
patented formulations or ingredients
based on R&D, and strong clear
product branding.
For Singapore healthcare product companies
who are keen to venture into India,
some areas of collaboration in which
they are seeking with Indian companies
include those with whom they can tie
up as distributors, agents, manufacturers,
retailers, and/or build partnership
or to OEM in own private label.
In general, would your country
be a partner in India's progress and
benefit from it at the same time?
India is one of Singapore's key trading
partners, with total trade of S$23.9
billion in 2007. It is also Singapore's
fastest growing major trader partner
with total trade growing at 19.8 percent
from the year 2006 through to 2007.
Beyond trade, we see many other areas
of collaboration which Singapore and
Indian companies can enjoy synergy
in, as mentioned some of the replies
above.
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