Singapore Firms Carve Out New Markets in the Philippines

1. A microcosm of Singapore's retail and F&B scene could soon be found in the heart of Cebu and Manila, comprising popular Singapore retailers such as Crystal Jade Palace Restaurant, Celia Loe, M)Phosis and Old Chang Kee. If all goes well, these companies could be joining other home-grown firms such as Charles & Keith and Breadtalk that are already creating a buzz in the Philippines.

2. 20 companies led by International Enterprise Singapore (IE Singapore) are currently in the Philippines on a five-day mission from 7-11 November 04 that will bring them to the main commercial cities of Cebu and Manila. In addition to the Retail and F&B sectors, Singapore players from the Info-communications Technology (ICT) sector are also represented in the delegation. (Please see Annex 1 for a list of mission participants)

3. Said Mr Lee Yi Shyan, CEO of IE Singapore, "As Southeast Asia's fifth largest economy, the Philippines is an important market with untapped potential for Singapore-based companies. Through this mission, we want to raise the awareness amongst our companies on the country and help our companies delve into these opportunities. Our ICT companies are well-placed to ride the growth of the Philippines as a regional hub for business process outsourcing. Our home-grown retailers and F&B outlets also have much to offer to the sophisticated Philippine retail market, catering to the strong and growing consumption level in the country."

4. The mission will provide participants with opportunities to profile their capabilities and service offerings to the Philippines' biggest mall developers and operators, and influential trade associations. Delegates will also benefit from networking opportunities with business chambers comprising the country's largest corporations, and one-to-one business meetings with Philippine companies.Highlights of the MissionSeminar on business opportunities in the Philippines

5. The delegates attended a half-day seminar in Cebu today, during which the Philippines Secretary of Trade and Industry, Cesar Purisima, delivered the keynote address, providing an overview of the Philippine economy. Mr Lee Yi Shyan further discussed about the robust economic relations between Singapore and the Philippines.

6. In his address, Mr Lee also noted that bilateral trade between Singapore and the Philippines is expected to reach an all-time high in 2004. Bilateral trade for Jan-Sept 2004 has thus far reached S$10.3 billion, boosted by strong trade figures in metalworking machinery, integrated circuits and semiconductor parts. For the year 2004, total trade is likely to surpass the previous record of S$11.6 billion achieved in 2000.Singapore and Philippines companies sign MOUs

7. In a ceremony held during the seminar, the Philippines Secretary of Trade & Industry, Cesar Purisima, as well as Mr Lee and the Co-Chairmen of the Philippines-Singapore Business Council (PSBC) witnessed the signing of 2 Memoranda of Understanding between Singapore and Philippine companies. The PSBC is co-chaired by Mr Lim Chee Onn from Singapore and Mr Guillermo Luchangco from the Philippines.

8. CrimsonLogic, together with the Cebu Educational Development Foundation for Information Technology (CEDF-IT), Asia Town IT Park, and the Center for Industrial Technology and Enterprise (CITE) signed an MOU today to set up an eLearning Competency Center in Cebu.

9. CrimsonLogic was introduced to CEDF-IT during a mission organised by IE Singapore to Cebu in Feb 04, and the successful business matching culminated in the establishment of the Center. The objective of the Center is to raise the IT competencies of individuals from industry, government and the academy by guiding them on how to develop eLearning modules as well as to use eLearning as a means of instruction. The eLearning modules developed by the centre will supplement the country's education curricula, and all public school teachers will be able to download these modules to use it as part of their teaching in classrooms.

10. Said Velusamy Mathivanan, CEO of CrimsonLogic, "We recognise the potential of the Philippines market not only in eLearning, but also for our supply chain solutions and healthcare offerings. Thus far, factors that have helped us in the Philippines have no doubt been our innovative solutions and our local presence which has enabled us to maintain close ties with current and potential customers. The support from IE Singapore has also served us well."

11. A second Singapore-based company, YCH Group signed an MOU with United Terminal Services Group (UTS Group) to collaborate on new projects. Said Mr Robert Yap, MD of YCH Group, "This collaboration will allow us to combine our award-winning supply chain solutions and IT applications with our partner's strong local logistics experience and track record in facilities management. We are confident that this partnership will yield a powerful value proposition to our customers."

12. Customers in the FMCG or pharmaceutical industries will be able to tap YCH's proven supply chain and IT solutions that have been successfully employed by other Fortune 500 MNCs including Dell, Motorola, Ciba and Friesland Vlag in other parts of Asia Pacific. At the same time, customers will be able to benefit from the critical local operational depth that the UTS Group possess through its track record of successful execution for logistics clientele in the Philippines.9th Philippines-Singapore Business Council Exco Meeting held in Cebu

13. Coinciding with the mission, the Philippines-Singapore Business Council (PSBC) held its Ninth Executive Committee Meeting in Cebu today. Among the issues discussed during the meeting were (1) key considerations in doing business in post-elections Philippines; (2) review and discussion of the business interests of Philippine and Singapore businessmen and how PSBC could facilitate their interests; (3) a focus on assisting the SMEs of both countries to establish win-win partnerships and collaboration; and (4) identification of key business sectors that the PSBC will actively promote in 2005 - these include retailing, food and beverage manufacturing and services, lifestyle services, information communications technology, business process outsourcing (BPO) and transport and logistics services.

14. The PSBC is one of the most active bilateral business councils in the Philippines and has played a pivotal role in strengthening business partnerships. Symbolically, the executive members of the PSBC from Singapore and the Philippines enjoy close business ties, as evidenced by SingTel and Ayala Corporation's joint venture in Globe Telecom. With the experience of successful joint ventures among the PSBC executive members, the PSBC strives to guide other companies from both countries in possible future ventures. Keppel Cebu Shipyard Centennial Celebration

15. The delegates were also part of the celebration of another successful collaboration between Singapore and Philippine partners - the Keppel Cebu Shipyard Centennial Celebration. Keppel Cebu Shipyard, which Keppel acquired in 1988, celebrated its 100th anniversary today. From a shipyard repairing vessels of up to 300 tons in 1927, the Shipyard is now able to accommodate vessels of up to 35,000 dwt. Today, Keppel Cebu Shipyard is the largest and most comprehensive shipcare facility in the Visayan and Mindanao regions. Bilateral trade between Singapore and the Philippines

16. In 2003, the Philippines was Singapore's 12th largest trading partner with total trade valued at S$10.557 billion. Singapore's main imports from the Philippines were telecommunication components and electronics such as integrated circuits, semiconductors, computers, disk drives, printers and printed circuit boards (PCBAs). Major exports from Singapore to the Philippines included electronics components, in addition to refined petroleum and tobacco manufactures.

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Issued by IE Singapore. For media enquiries or interviews, please contact:

Ms Ong Wah Hui
Senior Officer
Corporate Communications Division
Tel: 6433 4942 Fax: 6337 8136
Email: ong_wah_hui@iesingapore.gov.sg

About International Enterprise Singapore (IE Singapore)

(Note to Editor: Please use "IE Singapore" or "IE" if an acronym for "International Enterprise Singapore" is required.)

Formerly known as the Singapore Trade Development Board (TDB), International Enterprise Singapore - or IE Singapore for short - is the lead agency spearheading Singapore's efforts to develop its external economic wing by helping Singapore-based companies to globalise.

Our mission is to help Singapore-based companies grow and internationalise successfully. We offer a wide range of services in Singapore and in over 36 locations worldwide to help Singapore-based companies globalise. Through a 3Cs framework of assistance, namely, Competency, Connections and Capital, we provide market information, and assist enterprises in building up their business capabilities and finding overseas partners. At the same time, IE Singapore works to position Singapore as a base for foreign businesses to expand into the region in partnership with Singapore-based companies.

For more information, please visit www.iesingapore.com