S'pore rewards firms venturing abroad
S'pore rewards firms venturing abroad
SINGAPORE (AFP): Singapore rewarded three companies yesterday
with tax exemptions on income remitted from overseas operations
in an effort to encourage local firms to invest abroad.
Philip Yeo, chairman of the Economic Development Board (EDB),
said the board intended to nurture a pool of companies with
"distinct capabilities" to regionalize and globalize.
"They will help plug Singapore into the regional and
international market networks," Yeo said before presenting the
Overseas Enterprise Incentive (OEI) awards.
He said more local companies were doing business in the region
after three years of effort to goad them into venturing abroad,
adding that the EDB would help support the business endeavors of
Singapore's private sector.
Recipients of the tax exemptions were Dovechem Holdings Pte.
Ltd., Super Coffeemix Manufacturing Ltd., and Superior Metal
Printing Ltd.
The companies were rewarded for embarking on investment
programs that will result in balanced growth from their Singapore
and regional operations, the EDB said.
The OEI is an incentive targeted at local enterprises whose
growth will be driven by external markets and opportunities and
produce beneficial spinoffs for Singapore.
The tax breaks would leave more resources for such companies
to upgrade and reinvest for their next stage of growth, officials
said.
"They are exemplary examples of local companies who have
capitalized on the vast opportunities and resources in the
region," it said in a statement.
Singapore companies have invested billions of dollars abroad
in a regionalization effort aimed at ensuring future corporate
and economic growth from beyond the confines of the small city-
state.
The Dovechem group, which began in 1960 as a paint trading
company, has diversified into related businesses including
manufacture of paints, steel drums and chemicals.
It is a key regional player in the chemical terminating
business, with operations in Singapore, Malaysia, Indonesia,
Thailand and China.
Superior Metal Printing, which has core businesses in metal
and flexible packaging, has manufacturing facilities in
Singapore, Malaysia and China, and is planning to set up
factories in Vietnam and the Philippines.
Super Coffeemix, which manufactures three-in-one instant
beverages, has expanded into Indonesia, China, Malaysia, Myanmar
and Vietnam and plans to build another factory in Malaysia.
"Regional expansion efforts often require a lot of patience,
painstaking effort and long-term commitment on the part of the
businesses," said Kuik See Juan, executive director of Super
Coffeemix. "Such efforts may take years to pay off."
But he said having generated a higher demand and broader
product range, "overseas expansion has given us the scope to
boost our overall production capabilities."