Printable version10.12.2007
With good infrastructure, a stable political environment and an easy way of living, Singapore is the obvious hub for many foreigners who want to do business in Asia. Norwegian investments in Singapore have increased dramatically over the past decade, due to the closeness to booming markets like China and India.
Norwegian direct investments in Singapore were USD 7.9 billion in 2005, seven times higher than in 1995. And it is still increasing. – This makes Norway the fourth largest European investor in Singapore after the United Kingdom, Holland and Switzerland, comments Erik Borgen, regional head of DnB NOR Bank in Asia and Chairman of the Norwegian Business Association in Singapore. He adds that the Norwegian business community in Singapore goes back a long time, mainly based on shipping activities.
Expansion
Over 90 percent of Norwegian enterprises established in Singapore expect to increase business there over the next 12 months, despite concerns that office rentals, manpower costs and living costs have increased significantly over the past two years. This is evidenced in a survey conducted by Statistics Singapore and released at the 9th annual Norway-Asia Business Conference held in Singapore at the end of October. – The Government here is very eager to attract foreign business, so they are doing what they can to keep costs down, explains Erik Borgen. He hosted the successful conference which was attended by around 90 delegates.
Think tank
In addition to being a maritime hub, Singapore has become an international think tank for the IT industry and the new-energy sector. In addition to production plants, more and more research and development is gathered there. – One example is the Norwegian success story REC, explains Erik Borgen. – The solar energy company just announced their intentions to invest NOK 23 billion and employ 3000 people in Singapore. Also other Norwegian corporations, like StatoilHydro, are staffing up in the region. Following the clients DnB NOR is thriving in Asia based on their strategy to follow clients to the markets they expand into. Especially within energy, shipping, offshore, logistics and seafood.
In addition to their Asian headquarters in Singapore, DnB NOR has a branch in Shanghai, and representation in Hong Kong. Erik Borgen experiences that many Norwegian enterprises are looking to expand in India, and so setting up office in Mumbai is on DnB NOR’s agenda. Recently, DnB NOR received an award from the Ministry of Transport in Singapore as the best Maritime Service Provider in 2007 in competition with other service providers like banks, brokers and lawfirms. – We are very proud to have been nominated for this award, and it encourages us to keep supporting Norwegian businesses in the Asian region, concludes Erik Borgen.