Alpla has recently established their regional Headquarters for Asia Pacific here in Singapore. Why Singapore?
We are currently restructuring our Asia set up and have concluded to merge North and South East Asia into one region, Alpla Asia Pacific, with its regional headquarter based in Singapore. The decision to establish our regional headquarter here, has several reasons: First, it’s a safe country that provides a high level of legal security for an investor. Second, key stakeholders of our industry as well as brand owners have their relevant strategic supply chains and development organizations located here. Finally, Singapore offers a wide pool of qualified personnel.
What factors need to be considered when establishing a regional headquarter here?
While COVID-19 has slowed things down for us, founding a company in Singapore is usually a relatively easy and uncomplicated process. Singapore is highly organized, with clear and transparent processes. On one hand, this allows for thorough planning, while on the other hand, it can also lead to a somewhat rigid process.
Does the Singapore Government provide grants or other forms of concessions to companies who are looking to relocate to, or establish headquarters in Singapore?
Generally, it is possible to negotiate for grants or other forms of concession. These typically depend on the nature of the business, as well as the size and scale of a company – which can be measured by overall employment, revenue, investment scale etc. However, there is no set ‘formula’ or rate at which these grants and concessions are given. The EDB - Singapore Economic Development Board - provides guidance to new companies on this matter.
What are the challenges of establishing a regional headquarter in Singapore?
Singapore as a headquarter location has many advantages, such as the competitive corporate tax rate, its good connection to global supply chains, a very dynamic start-up scene, good local Universities and a developed R&D lands scape. However, it might not be the ideal location for all businesses due to its cost structure. While Alpla is establishing its executive headquarters here, we do not consider industrial operations in Singapore.
What recommendation would you give to someone who wants to establish their regional headquarter here?
Do your due diligence and consider all aspects of your business!
