Singapore hungry for more Indian investments

Already the top destination for Indian investors, Singapore wants more Indians to put their money in the city state and for starters, has picked out areas like chemicals, aerospace, electronics, energy and education.

According to a Reserve Bank report in July, Singapore was the top investment destination for Indians who parked more than $15.9-billion between April 2008 and March 2009.     

However, for Singapore, India is second only to Malaysia in terms of investments.

"There are plenty of opportunities in Singapore in areas like chemicals, aerospace, electronics, energy and education, among others. Indian companies can invest in these segments," Singapore Economic Develoment Board's Deputy Managing Director, Tan Choon Shian, told visiting journalists.

SEDB is a government agency to promote investment and trade in the country.

Choon, however, declined to divulge the names of Indian corporates that have initiated talks with SEDB to set up shop or expand operations in the country.

"Our offices in India are in regular touch with the companies willing to invest in Singapore, but I can't reveal their names," Choon said.

Indian presence in Singapore has shot up exponentially since the beginning of the century. In 2001, there were 1,121 Indian companies in Singapore. This increased to 1,844 in 2005 and to 3,849 by end-2008.

Tata Consultancy Services, in February this year, announced plans to invest $180-million to develop an Internet Data Centre in Singapore, and in April, K S Oils set up its international headquarters in the country to spearhead its global expansion.

Choon said that Singapore received $10-billion investment on an average in the manufacturing sector in the last five years.

Ranked by many as the world's easiest place to do business by the World Bank in 2009, Singapore is said to have the most business-conducive labour regulations in Asia with almost zero red-tape.

"Though we don't offer any tax sops to investors, Singapore keeps its tax rates and laws competitive and adopts a strategic and holistic approach towards stewardship of key pillars of the economy such as petrochemicals, electronics and clean energy," he said.

The country has also become one of the world's top transportation hubs for sea and air cargo riding on its advantageous geographical location.