Singapore and FDI – attitude makes all the difference.
While in Singapore I have met with executives from Blackstone, Cigna, Fortis, GSK, ISOS, MasterCard, MHCAsia and others. Uniformly, these executives talked about the approach of the Singaporean government – the attitude – as being a critical part of the reason they chose to locate in Singapore. This “attitude” is pervasive, but seems to have particularly reflected itself at three different times during the market-entry process – the approach, the market entry and the follow-up.
On the approach, it was very interesting to learn that the government of Singapore often does not make the first approach to a potential multinational company. Instead, they go to a major multinational company in a related field already in Singapore, and ask that that lead executive contact their peer and ask them to consider locating in Singapore as well. This is not to say that the government doesn’t also make the approach. They do in many cases as well. For example, the government will target specific “big names” that they believe they need to have in Singapore for prestige or to round out an industry etc. and make the approach themselves or in addition to another local CEO. This too is where “attitude” matters. From many sources I was told that Singaporean government employees are highly paid compared to those in other countries. Often these salaries, particularly among senior management, are competitive with the private sector. As a result, the government can attract the best and the brightest, and often those who have been educated in an international setting. Thus, these senior executives are also uniquely positioned to have the conversations with the senior executives of the target company. One foreigner whose company was considering moving from Korea to Singapore was taken aback by the quality and specificity of the technical questions his people were asked, and in some cases they had to go back and ask some of their R&D team to answer the questions because the questions from the government were so technical that they were “over the heads” of those at the meeting from the company. He felt like the government understood what his business might need down the road in Singapore better than he did when it came to the technical aspects.
The “attitude” also presents itself in assisting companies when they actually enter the market. As one executive described it, “Most countries think you’re trying to enter their country to exploit them. In Singapore they want you to come for their mutual benefit, and so approach the entire relationship as a partnership. It’s a different mind-set.” Another executive described this attitude as looking at each potential MNC as a customer. Customer-centricity is a buzz word in many multinational businesses today to describe the need to focus on the customer, and that is how the government of Singapore was described -- customer centric. The government’s assistance was described by more than one executive as “they made it easy”. According to one executive, the government took care of everything and he never had to fill out one paper. He said “Where else can you enter a market and not be required to complete reams of paperwork?!” In Singapore, the government met with his team and helped get whatever was needed to be put in place so he never had to actually complete any of the papers himself. I also heard from multiple companies that the government helped them integrate by introducing the executives around within the government to various ministers or other officials with whom they would be working. These executives are also occasionally offered the opportunity to sit on government boards to meet other company executives and government officials. For example, the government recently organized an Economic Strategies Committee to look at planning in a variety of areas for Singapore, including how to make Singapore a “global city”. These committees included equal representation from the private and public sector, but also included a diverse array of individuals from a variety of industries as well as the arts and academia. This attitude of wanting to link companies who enter the market with other leaders in both government and the private sector is a unique attitude that all of the private sector companies lauded.
Lastly, Singapore’s attitude in treating these companies as being in a long term relationship was one that resonated with all of the businesses as well. Each company talked about the regular follow-up they would have with the government. Some of these discussions were to ask questions to see if there were ways the government could help – did the company have what it needed to grow, were visas taking too long, are they finding the right local suppliers etc. Some of these discussions were more general and were around different things going on in the industry, or were just an opportunity for the government to learn more so that it could respond appropriately. This constant learning is also an added for the government because their attitude has been, and continues to be, one of always wanting to be at the forefront, and of remaining agile so as to pivot when necessary to maintain their leadership as a premier location for international business. One executive summed it up best when he said that “the government treated us like a customer and made us feel good about the process”. If attitudes are contagious, it sounds like this is one worth catching. Tomorrow, Vietnam…
While in Singapore I have met with executives from Blackstone, Cigna, Fortis, GSK, ISOS, MasterCard, MHCAsia and others. Uniformly, these executives talked about the approach of the Singaporean government – the attitude – as being a critical part of the reason they chose to locate in Singapore. This “attitude” is pervasive, but seems to have particularly reflected itself at three different times during the market-entry process – the approach, the market entry and the follow-up.
On the approach, it was very interesting to learn that the government of Singapore often does not make the first approach to a potential multinational company. Instead, they go to a major multinational company in a related field already in Singapore, and ask that that lead executive contact their peer and ask them to consider locating in Singapore as well. This is not to say that the government doesn’t also make the approach. They do in many cases as well. For example, the government will target specific “big names” that they believe they need to have in Singapore for prestige or to round out an industry etc. and make the approach themselves or in addition to another local CEO. This too is where “attitude” matters. From many sources I was told that Singaporean government employees are highly paid compared to those in other countries. Often these salaries, particularly among senior management, are competitive with the private sector. As a result, the government can attract the best and the brightest, and often those who have been educated in an international setting. Thus, these senior executives are also uniquely positioned to have the conversations with the senior executives of the target company. One foreigner whose company was considering moving from Korea to Singapore was taken aback by the quality and specificity of the technical questions his people were asked, and in some cases they had to go back and ask some of their R&D team to answer the questions because the questions from the government were so technical that they were “over the heads” of those at the meeting from the company. He felt like the government understood what his business might need down the road in Singapore better than he did when it came to the technical aspects.
The “attitude” also presents itself in assisting companies when they actually enter the market. As one executive described it, “Most countries think you’re trying to enter their country to exploit them. In Singapore they want you to come for their mutual benefit, and so approach the entire relationship as a partnership. It’s a different mind-set.” Another executive described this attitude as looking at each potential MNC as a customer. Customer-centricity is a buzz word in many multinational businesses today to describe the need to focus on the customer, and that is how the government of Singapore was described -- customer centric. The government’s assistance was described by more than one executive as “they made it easy”. According to one executive, the government took care of everything and he never had to fill out one paper. He said “Where else can you enter a market and not be required to complete reams of paperwork?!” In Singapore, the government met with his team and helped get whatever was needed to be put in place so he never had to actually complete any of the papers himself. I also heard from multiple companies that the government helped them integrate by introducing the executives around within the government to various ministers or other officials with whom they would be working. These executives are also occasionally offered the opportunity to sit on government boards to meet other company executives and government officials. For example, the government recently organized an Economic Strategies Committee to look at planning in a variety of areas for Singapore, including how to make Singapore a “global city”. These committees included equal representation from the private and public sector, but also included a diverse array of individuals from a variety of industries as well as the arts and academia. This attitude of wanting to link companies who enter the market with other leaders in both government and the private sector is a unique attitude that all of the private sector companies lauded.
Lastly, Singapore’s attitude in treating these companies as being in a long term relationship was one that resonated with all of the businesses as well. Each company talked about the regular follow-up they would have with the government. Some of these discussions were to ask questions to see if there were ways the government could help – did the company have what it needed to grow, were visas taking too long, are they finding the right local suppliers etc. Some of these discussions were more general and were around different things going on in the industry, or were just an opportunity for the government to learn more so that it could respond appropriately. This constant learning is also an added for the government because their attitude has been, and continues to be, one of always wanting to be at the forefront, and of remaining agile so as to pivot when necessary to maintain their leadership as a premier location for international business. One executive summed it up best when he said that “the government treated us like a customer and made us feel good about the process”. If attitudes are contagious, it sounds like this is one worth catching. Tomorrow, Vietnam…
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