Leighton International's Magazine, Perspective, Issue 6 2010

08
INDUSTRY NEWS
LEIGHTON
RETURNS TO
SINGAPORE
LEIGHTON SINGAPORE AREA MANAGER,
BRIAN TICCIONI, SHARES HOW LEIGHTON IS
WORKING TOWARDS GETTING A SLICE OF
AN ULTRA–COMPETITIVE MARKET.
Singapore’s strategic
location and political
stability have made
it an attractive oasis
for many foreign
corporations seeking
to target the Asian
market. Leighton International has
recently made the strategic decision to
re-enter the Singapore market on the
back of an upturn in Singapore’s
economic growth and recognition that
the coming five to seven years will see
the development of a substantial
number of large, private and publically
funded infrastructure projects.
Singapore’s construction sector is
highly developed with a reputation for
being ultra – competitive with
comparatively low margins but balanced
by low taxation, low bureaucracy and
high levels of transparency, corporate
protection and local and foreign
investment. Consequently all of the
regional household name construction
groups together with multi-nationals
from Europe and North America have a
strong presence and are competing with
long established local companies for
a slice of an industry that is expected
to turn over in excess of US$20 billion
in year 2010.
For Leighton, since first entering this
market back in 1992, Singapore has
offered a number of on-shore and
off-shore boutique project opportunities
which have proven to be highly lucrative
and successful.
Our previous attempt in 2003 to gain
a permanent foothold in Singapore
coincided with a local economic
downturn, the SARS crisis and the
simultaneous increase in construction
activity in India and the Middle East.
Consequently, in 2005 the decision
was made to mothball our Singapore
operation until a more rewarding
business environment returned.
The re-entry in June of this year is
quickly proving to be rewarding with the
Singapore office already contending with
a number of tenders including three
co-gen power plant extensions, a waste
facility project in Brunei with a Singapore
project developer, Tuas Desalination
PPP Project, Downtown Line 3 MRT
extension and Downtown Line 3 track
works. The programme of future tenders
already extends into third quarter 2011
and whilst the local market remains
highly competitive and commercially
aggressive, there exists a strong belief
that this time around Leighton’s
presence in Singapore will be a long
and successful one.