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."