CERCLE DIPLOMATIQUE - issue 03/2015

LE MONDE SINGAPORE
Chinatown by night:
Singaporeans take
pride in their historic
city centre.
Future meets tradition:
The Gardens by the Bay
(top) with their huge
metallic tree skeletons
contrast with the historic
luxury of the Raffles Hotel.
Under his strong and paternal hand – until today
the city has never changed its ruling People‘s Action
Party (PAP) – Singapore has acquired a strong national
identity. Once a state that was never meant to be,
made up of racially diverse immigrants – a Chinese
majority of about 74 per cent with substantial minorities
of Malays (13 per cent) and Indians (9 per cent)
– is now fulfilling its people with pride and patriotism.
Until his resignation as prime minister in 1990,
Lee was ruling the city fate almost as a (mostly) benevolent
dictator forming its expansion with ruthless
pragmatism. ”Poetry is a luxury we cannot afford“
was one of his maximes. Another one was a
message to all Singaporeans: ”Explore the world and
come back with at least two practical ideas.“
And so they did, turning their home step by step
into one of the most advanced cities in Asia, not only
in terms of its economic success but also as a forerunner
in technology, scientific research and environmental
urban development into a ”Smart Green
City“. Because of this combination, Singapore in the
meanwhile has attracted some 10,000 companies
from Europe, for example Rolls Royce, Novartis or
Siemens, to set up their Asian headquarters and manufacturing
outlets here, including 86 Austrian companies
like RHI, Rosenbauer, Palfinger oder Semperit
as well. More than 500 Austrian additional
businesses are engaged in trade relationships with
Singapore, contributing to total exports from Austria
of some 413 million Euros last year.
Volker Ammann, the Austrian commercial representative
in Singapore, insists that this trade volume
needs to be extended intensively: ”There is no way
for our companies to come by this business location,
either they like it or not“, he says. ”For a long time
going to Singapore was an opportunity. Today it is a
must.“ Ammann comes up with a simple but convincing
demographic argument for this ”Go-Far-East“
strategy: Around the year 2030 at the latest a third of
all of the world‘s middle class consumers will be living
in South East Asia, China, India or Japan, spending
their money in these regions. As a matter of this
market shares of the United States and Europe in
consumer spendings will slump, making it more difficult
for companies there to earn profits in these ”old
markets“. Unless they turn to Asia, especially to Singapore,
as their operation base.
According to Ammann the time to do so is high
since it is getting harder everyday for foreign companies
to put themselves on the Singapore map: ”20
years ago an European businessman could drop by
here, present his product, negotiate a bit and most of
the time he went home with a contract in his pocket.
These times are over and gone. Today you really have
to exert yourself and work 24/7 to be successful.“
But the actual ease of doing business is uncomparable,
he says. Establishing a company only takes
about five days at the cost of some 3,000 Singapore
dollars maximum, including legal fees. Company taxes
are limited at 17 per cent and there are myriad
possibilities of deduction and tax incentives as long
as the business adds to the overall benefit of Singapore
– a policy known as ”PID“ or ”Productivity and
Innovation Credit“. For example, the pharmaceutical
giant Baxter, since 2009 is running a big factory for
the production of haemophilia drugs in Singapore
and did not pay a single tax dollar until 2015. Private
income is taxed with 22 per cent at the max and VAT
amounts for only 7 per cent.
One of the Austrians who has made it here is Erich
Erber. He became a Singapore resident more than
eight years ago and has been chosen for the prestigious
”Expat of the Year“ 2015, an export award by
the Austrian Economic Chambers. Another one is
Erich Sollbeck, who is running the only ”Wiener
Würstelstand“ in Chinatown, offering ”Käsekrainer“
and ”Leberkäs“. ”To me“, Sollbeck says, ”Singapore is
like an advancement, a further stage of Austria.“
PHOTOS: SINGAPORE TOURISM BOARD, DERRICK SEE
44 Cercle Diplomatique 3/2015