The Historical Development of Japanese Investment in Singapore 1979-2007 E-Book

Uqbah Iqbal

• Herausgeber: GRIN Verlag
• Sprache: Englisch

Veröffentlichungsjahr: 2015

Beschreibung

Scientific Essay from the year 2015 in the subject History - Asia, University Kebangsaan Malaysia, course: History, language: English, abstract: As Asia's most advanced countries in the field of company and could be likened to the countries of Western Europe and the United States, Japan has provided significant investment to Singapore. This is done as soon as the Singapore government decided to expand the corporate sector in the country and making it the backbone of economic development of countries in the early years of the sixties. The opening of Jurong city has led to an increase in Japanese factories and companies that opened in Singapore. Economic relations between Singapore and Japan narrowed and moved in tandem with the development and progress made by Singapore in the field of industry. By January 1977, Japan is the major business partner to Singapore and most foreign countries to invest here, followed by the United States and West Germany.

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Inhaltsverzeichnis

The Historical Development of Japanese Investment in Singapore (1979-2007)

References

The Historical Development of Japanese Investment in Singapore (1979-2007)

As Asia's most advanced countries in the field of company and could be likened to the countries of Western Europe and the United States, Japan has provided significant investment to Singapore. This is done as soon as the Singapore government decided to expand the corporate sector in the country and making it the backbone of economic development of countries in the early years of the sixties. The opening of Jurong city has led to an increase in Japanese factories and companies that opened in Singapore. Economic relations between Singapore and Japan narrowed and moved in tandem with the development and progress made by Singapore in the field of industry. By January 1977, Japan is the major business partner to Singapore and most foreign countries to invest here, followed by the United States and West Germany.[1]

A manufacturer of carburetors for motor saws from Japan has established a subsidiary in Singapore with registered capital of $2 million. Walbro Singapore Pte Limited Company is the first and only company in Southeast Asia producing such a device. This subsidiary to Walbro Far East Incorporation from Japan will have a factory in Kallang Way and started production in January 1979. In the first year of production, it will have about 40 employees, including three specially trained technicians for six months in Japan. The tools that made here will be marketed to countries in Asia, North America and Europe.[2]

Japanese production company, Nachi-Fujikoshi Corporation will be established in Singapore in May 1979 with a capital of $6 million and a fixed initial investment of $16 million. The company known as Nachi Manufacturing is expected to achieve annual revenue of $12 million. Commercial production is expected to commence in March 1980 with initially 270 employees. The company's plant, which has an area of 20,000 square meters has been allocated in Jurong. The corporation plans to establish a company in Singapore because of a positive encouragement from the government of Singapore, the location, the free port status, and others. Singapore also has a skilled labor competition for quality production. The company will be owned 95 percent by the Corporation and five percent by Nachi Singapore, a joint venture between the Corporation and the local company.[3]

Matsushita also plan to double their investments amounted to $100 million in Singapore in the next four to five years from 1979. The company already has seven networked companies that employ 4,000 workers. The company will also provide promotional opportunities for local workers in which 150 people were sent to Japan to attend the necessary training. At the executive level, three local officials were given the opportunity in three from seven Matsushita companies in Singapore, including a woman as personnel manager. Currently, all Matsushita companies in Singapore exports about 68 percent of their products abroad and they hope to increase the amount of exports to 80 percent in the 1980s.[4]There is the establishment of Yamaha Manufacturing Pte Ltd factory in Teban Garden Crescent, Jurong in January 1980 with a capital of $5 million and issued a total of 150,000 tennis rackets. About 99 percent of the output will be exported worldwide.[5]

Showa Chain (S) Pte Ltd, a leading manufacturer of mixture iron chain in Jurong which started production in August 1980 invested a total of $3 million to increase the number of its machinery by March 1981. This brings the company's total investment to $10 million. That additional machines will increase the company's chain anchor production to $1.5 million a year. Most of the production is for the domestic market. But with the increasing production, the company can export to other countries, including New Zealand and Mexico. The company, which has a factory covering an area of 3,300 square meters and is situated on a plot of land measuring 8,700 square meters also produces chains for mining, forestry and companies for exporting to Japan, Australia, the Philippines, Thailand, South Korea, the European Common Market (EEC), and North America. The company also is exploring the market potential in Indonesia and India where demand is high reliable. Factory in Jurong was a factory of its parent company, Showa Kikai Shoji which is the first outside Japan and the first kind in Singapore. The company granted pioneer status for seven years had a total of 35 employees and expects to double that number under expansion plans. Singapore became an option for its plant because of its ideal location, the economic environment, good ports, facilities, and employees who can perform automatic machines for various production processes.[6] SingaporeJVC Electronics Company will invest $12 million in 1982, bringing the total investment in Singapore to $16.5 million. The company became active in Singapore since 1978. The company is the first overseas branch of its parent company headquartered in Japan. Until October 1981, its branch in Singapore has more than 600 workers.[7]

A new company that will produce the circuit board will be set up in Singapore. The company named CMK Singapore Pte Ltd is the result of a partnership of two Japanese companies, namely Chuo Meiban Manufacturing Co Ltd and Sumitomo Bakelite Co. Ltd. For starters, the company will invest a total of $14 million and supplies circuit boards to the electronics companies that become their customers in Singapore and other countries in the region. The company's plant will be built in an area of two hectares in Bedok Industrial Park in July 1981 and be completed in April 1982. The plant will have a production process using machinery. Thus it only takes a total of 150 employees for full production and some workers at the plant in Singapore will be sent to Japan soon to follow a training program there. The company was granted an investment incentive allowance and will develop the project gradually with its completion investment is estimated to reach as much as $25 million within five years.[8]

In June 1985, Minebea Company, which is a major ball-bearing manufacturer in the world and headquartered in Tokyo has set up an investment company worth $70 million company called Minebea Investment Pte Ltd in Singapore to manage the money benefits. The company has already opened four factories in Singapore and listed under Stock Exchange of Singapore (SES). The main activities of Minebea investment company is to invest in securities, bonds and shares in the United States stock markets and Europe. Within three months after its establishment, the company's trading activities increased to $375 million. Apart from its share capital, the company’s main source are long-term loans from its parent company and related companies. At the end of September 1985, this number reached $325 million. Ajinamoto Company has also set up an investment company in Singapore in 1985 with a capital of $150 million. Government of Singapore Investment Corporation (GIC) has purchased bonds worth $8 million from the company.[9]

Japanese giant electronics company, Matsushita chose Singapore as a production and export of high-grade electric motor output. Its subsidiary in Singapore, Singapore Matsushita Precision Motor will move to a new factory with an area of 2.2 hectares in Pandan Gardens in May 1986 which will double its production starting in October. The transfer is part of an expansion plan for the $30 million is what makes Singapore the center of producing and exporting electric motor. The decision to expand production in Singapore was taken after a long study of several other places. Matsushita Group has a motor factory in Brazil, Taiwan and China. The decision to expand its subsidiary in Singapore is due to the good experience during the eight years since it was established here. New machinery worth about $ 4 million will be installed in the new plant.[10]

On 23 August 1985, the largest television glass producer company in the world, Asahi Glass announced it would invest $200 million in Singapore. They chose Singapore to increase production because of good infrastructure and labor. Another important factor is the policy of Singapore to develop enterprises that have high competitiveness at the international level. The company, with a new subsidiary named Asahi Techno Vision (Singapore) will open its new plant in Tuas that is expected to be completed in mid 1987. It is expected to produce 7 million pieces of television glass and one third of them will be sold to a company in Singapore, Hitachi Electronic Devices Singapore (HED), a leading manufacturer of television tubes. Asahi's new factory will employ 600 people and half of them will consist of skilled technicians and engineers. Some of the workers will be sent to Japan for training in the technology of production and quality control. Economic Development Board (EDB) has granted pioneer status to that company. The time frame for these tax incentives will depend on the investment schedule of the company itself.[11]

Japanese audio equipment company, Aiwa has opened a second plant in Singapore that is expected to provide employment to 250 local workers. The investment for the plant, which is worth $18 million in Jurong will increase its capacity in Singapore to produce almost half of the equipment produced by the Aiwa company group. The new factory will be fully functional in January 1986 and it is expected to add production of Aiwa in Singapore to nearly four times or $ 390 million in 1986. Aiwa moving its manufacturing effort to Singapore due to stiff competition it faces in Japan resulted in the closure of one from its three plants in Japan. The Singapore plant will produce the latest high technology equipment to be exported to Japan, the United States, Europe and the ASEAN region. The first factory was 12 years old in Lower Delta Road will continue to produce equipment such as radio, cassette recorder and earphones. Aiwa require about 500 workers for its plant in Jurong, half of the workforce required will come from Malaysia.[12]

Sony Company will open a production engineering center in Singapore in July 1987. Known as the Sony Precision Engineering Centre, which is located in Jurong it will invest approximately $35 million in five years. By employing a total of 100 workers who were mainly local skilled workers, the center will provide engineering components required by its factories in Asia. Sony chose Singapore because in here there already an engineers and technicians who have a certain level of skill required. For the first year, the center will invest $11 million and seeks to generate production worth $ 15 million. Its production includes parts needed in making video tapes and compact discs and tools automation office use. Singapore's ability to compete in terms of cost is an important factor for Sony’s decision d to increase its investment here.[13]

On 11 March 1988, Japan’s manufacturer of hi-fi equipment, Kenwood announced the opening of its largest plant in the world in Singapore. That factory at a cost of $ 5 million in Ang Mo Kio will focus on the production of advanced hi-fi system for homes. The company plans to manufacture audio equipment worth $140 million in 1988, making Singapore the biggest production base for the Kenwood company group in the world. Because Kenwood ant to be made as an international companies and the most advanced companies in the field of production of hi-fi equipment, it is necessary for the company not to be too Japanese The latest factory in Singapore is part of the company strategy that includes other parts in world. Other factors that drive Kenwood company to opened a factory in Singapore is the high yen value and low costs in production and transportation. Kenwood also keen to work with local companies that can supply parts and components for its production needs. By March 1988, about 40 percent of its supply comes from local producers. Its factory covering an area of 10,860 square meters and has about 650 employees will be equipped with modern production equipment. The advanced equipment will reduce the number of personnel required. About 70 percent of Trio-Kenwood production will be exported to the United States and Japan. Factory in Ang Mo Kio is the second in Singapore, bringing the total investment of the company in this country as much as $30 million.[14]

In early February 1987, the Matsushita Technical Center (S) Pte Ltd company (MASTEC), a subsidiary of Matsushita Electric Industrial Group Co Ltd has opened a new plant worth $5 million in Jalan Ahmad Ibrahim. With the expansion, MASTEC hopes to intensify its role as a base in the ASEAN region for production engineering division of Matsushita Electric Group and other companies in the world. Its factory area is 4,300 square meters and up to February 1987 had a total of 90 employees. It was officially opened by the Minister of State (Education) Singapore, Dr Tay Eng Soon on 26 February 1987.[15]

Asahi will invest $200 million in a factory to produce colour television tubes. Production is scheduled for the end of 1987.[16]In September 1988, TDB Holdings was established by the Trade Development Board (TDB) in Singapore to enhance Singapore's international trade. It then entered into a joint venture with Heiwado & Co. in Japan to produce, promote and market the Singapore jewelery in Japan. This investment will not only open new markets for Singapore jewelery, but also improve the image of Singapore as a supplier of high quality products in Japan.[17]On 9 September 1988, the opening of the third Aiwa Singapore company's plant are inaugurated in Jurong. The use of automation in the production of Aiwa company is very impressive. If more employers do so, Singapore will be able to fully use the whole energy sources better. Production at the third plant will use 85 percent of mechanization and does not require new workers. Factory worth $20 million is expected to employ about 330 local workers and increase production of Aiwa in Singapore to $500 million at the end of 1988. The plant will assemble the circuits board that is a very important component for audio equipment company. The first factory was 14 years old in Lower Delta Road and the second in Jurong will continue to produce equipment such as radio, cassette recorder and headphones. Aiwa will also set up a center for research and development (R & D) and operations are expected to commence in November 1988. The investment for the center, which is worth $1.5 million will enhance Singapore's capabilities in producing high-quality goods for the world market. Aiwa already get about 16 local engineers who will be trained in Japan to lead the R & D unit in Lower Delta Road.[18]

A first factory made the fluorescent lamp with an investment of $40 million will be set up in Singapore and is expected to start production by the end of 1989. Construction of the factory owned by Matsushita Denshi (S) Pte Ltd (MECS) in Ang Mo Kio Industrial Park 2 will begin at February 1989. A total of 10 million fluorescent lamps will be issued annually in the first phase and the number will increase to 20 million in the second phase. 10 percent of the fluorescent lamps production of its parent company in Japan, Matsushita Electronics Corporation will be transferred to Singapore. The company supplies 35 percent of the fluorescent lamp in round-shaped and seven percent of the required length in the world. The company will using fully automated machines and robots and will have a total of 135 workers, mostly technicians and engineers. Some employees from the parent company in Japan will train employees in Singapore while some Singapore workers will be trained in Japan. In addition to the fluorescent lamp factory, MECS company produces semiconductor equipment since 1978. With the establishment of the new factory, MECS company invest $130 million in Singapore. The decision to set up processing plants determined as fluorescent light semiconductor business environment is not stable, the use of automated machines in Singapore and Singapore's diligent worker attitude.[19]

Singapore’s Trade Development Board (TDB) will establish a joint venture company with a food company in Japan to expand exports of Singapore food and beverage into Japan. The company named Singapore Kokubu Incorporated will be set up in Tokyo in February 1991.[20] Investments from a Japanese company to set up a mechanization factory valued at $16 million further strengthen Singapore's capabilities as an excellence manufacturing center. Especially when that fully Japanese-owned factory was managed 100 percent by Singaporeans.[21]Murata Manufacturing Co Ltd also plans to invest another $180 million in Singapore in 1994. The investment will include the company's expansion and the construction of a new plant. Term expansion plan is expected to be up to the year 2000.[22]Aiwa make additional investments in Singapore for $56 million in 1994. The investment is to allow it to increase the use of automation and for research and development (R & D). Aiwa Singapore Pte Ltd also hopes to diversify its products.[23] Large Japanese electronics company, Hitachi has opened a new research and development in Jurong in 1994. The new center is worth the $ 7 million over an area of 3,500 square meters, which is controlled by 34 engineers will support the production of cathode ray tubes used to make screen television and computer.[24]

In 1995, Japan's leading trading company, Mitsubishi Corp. aims to establish a commercial bank branch in Singapore to enhance its investment business in the Asian region. The branch, MC Capital Asia Pte Ltd. will be established with a capital worth $111.2[25]Matsushita Technology (Singapore) Pte Ltd (Astec) invested a total of $98 million for a research and development (R & D) in Jurong, which was officially opened on 16 April 1996. The move is a strategy to develop its business rapidly in the Asian Pacific market.[26] Yusen Air and Sea Pte Ltd invest $23 million to provide logistics services in Singapore in 1997.[27] Japan will also help Singaporeans build a large petrochemical complex in Pulau Merbau.[28]Stella Chemifa Singapore Pte Ltd on 7 June 2001 announced that it will build an acid plant at a cost of $47 million investment in Jurong Island.[29] Bank of Tokyo-Mitsubishi on 24 December 2004 opened the headquarters of investment banking for Asia in Singapore to tap the growing market demand in the region. Its Asian headquarters will combine the operations of 32 branches and representative offices in Asia outside Japan.[30]

There is also opening a new Japanese electronics manufacturer factory opening, Showa Denko KK in Pioneer Crescent nearby Jurong on 14 December 2006. In June 2007, Daiwa Securities Group Inc., Japan's second largest securities firm plans to open a Singapore branch to start private equity investments in Asia. Daiwa will increase the number of employees in Singapore to 280 people over the next three years to capitalize on areas such as investment banking and private banking.[31]Mitsui Chemical will invest US$14 million (S$ 235.6 million) to build a plant in Singapore by the year 2009. The investment is complementary to the resin manufacturing plant in Singapore to meet growing demand in Asia.[32]

References

Anonymous. 1977. Peranan syarikat2 Jepun dlm pembangunan ekonomi S’pura. TINJAUAN KE ATAS SYARIKAT DAN KILANG JEPUN DI SINGAPURA - Bahagian Pertama. Berita Harian, 11 January: 4.

Anonymous. 1977. Petro-kimia: Penyertaan kerajaan Jepun rasmi dimohon. Berita Harian, 2 March: 8.

Anonymous. 1977. PETROKIMIA: JAMINAN PM FUKUDA. Berita Harian,31 May: 1.

Anonymous. 1978. Firma pembuat karburator Jepun dirikan kilang $2j. Berita Harian, 26 May: 10.

Anonymous. 1979. Syarikat pengeluar alat2 haidrolik Jepun akan ditubuh. Berita Harian, 16 January: 2.

Anonymous. 1979. Firma Jepun rancang pelaburan $100 juta. Berita Harian, 23 October: 8.

Anonymous. 1980. Kenapa pelabur2 Jepun pilih S’pura…. Berita Harian, 23 April: 3.

Anonymous. 1981. Syarikat Jepun tambah pelaburan jentera. Berita Harian, 20 March: 3.