Asia Outlook Issue 7

w w w. asiaoutlookm ag .com

after great success in the uk, eDmi are looking at expanding into new markets SingaPoRe inVeSTMenT PRoFile

lieBheRR SingaPoRe

20 asia outlook takes an inside look at singapore’s investment potential

SMc FoodS 58 smc food 21 have been manufacturing sugar, milk and cocoa powders for the last 15 years

34 liebherr singapore are continuously expanding their solutions in an ever-changing market

BeyonicS 40 Beyonics technology have been globally recognised as one of the top electronics manufacturing services providers

aSia ouTooK iSSue 07 a l S o T h i S i S S u e: e d M i | a c c e S S T e c h | n e W a S i a n T i g e R S | V i e T n a M R e Ta i l F o c u S

W E l C O m E a Resolute asia asia has always been considered one of the strongest economies of the last 20 years, due to the significant growth of both china and Japan in market sectors such as construction, manufacturing and electronics. the global recession hit everyone hard but asia has continued to show signs of continual growth, albeit small, but growth nonetheless. many attribute this to countries within the continent approaching business with a different, more economically and financially responsible, mindset. the companies we feature in this issue are prime examples of asian businesses rejuvenating their respective markets by adapting to new business ideas. our front cover interview is with eDmi’s ceo, lee kwang mong, who is spearheading the company’s development into europe and the uk having already seen strong expansion in asia. eDmi have shown that with careful application of core values and a strong r&D team, the company have been able to expand at such a rapid rate to now have 20 offices globally. on page 28 of this issue we have an interesting interview with Lian Beng’s Construction Director, Jeffery Teo, examining how the company has become the largest home-grown singapore construction group to date. we also feature smc food 21, who are working to achieve more efficient production of their powder-based products by expanding their production line. the latest instalment of our popular investment profile looks at singapore, whose commerce, industry, heritage, culture and entertainment are just some of the reasons foreign investors look towards the asia powerhouse as an ideal place to do business.

“Without continual growth and progress, such words as improvement, achievement, Matt Bone and success have no meaning.”– Editor, Outlook Publishing Benjamin Franklin

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In this issue of Asia Outlook...

C o n S T R U C T i o n

T e C h n o L o G Y

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LiAN beNg Home-Grown Construction Giants

For more than 40 years, Lian Beng have maintained an excellent track record

manUFaCTURinG

eDMi the Future of smartmetering solutions

After great success in the UK, EDMI are looking at expanding into new markets

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ACCessTeCh access all areas

Accesstech have been extending their expertise into various new mechanical and high-tech projects

F o o d a n d d R i n K

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News

All the latest top stories across the month from Asia

CoNsTruCTioN the New asian tigers

Construction in focus: Asia Outlook takes a closer look at the trends in the ever-growing construction industry

FiNANCe vietnam: the Hotspot for retail investment

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Liebherr siNgApore asia’s aerospace artisans

iNVesTMeNT proFiLe siNGaPore

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beYoNiCs TeChNoLogY Beyond manufacturing

Could Vietnam become the new foreign retail centre of Asia?

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Asia Outlook takes an inside look at Singapore’s investment potential

showCAsiNg LeADiNg CoMpANies tell us your story and we’ll tell the world

Liebherr Singapore are continuously expanding their solutions in an ever-changing market

Beyonics Technology have been globally recognised as one of the top electronics manufacturing services providers

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sMC FooD 21 Powder Perfect manufacturing

SMC Food 21 have been manufacturing sugar, milk and cocoa powders for the last 15 years

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eVeNTs

Asia Outlook highlights upcoming events on the continent

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T e c h n o l o g y

Shanghai Maths Teachers to be Brought to England

Bangalore’s Waste Disposal Could be Helped by Cloud Computing Software Bangalore could benefit from a cloud-based technology network, which will make garbage disposal and recycling more efficient, provide better working conditions for people who collect and separate the garbage, and lead to city streets that don’t double as dumps.

The city’s garbage problem comes from its two-decade transformation into India’s technology capital, so it seems appropriate that a new plan to clean up the mess is coming from an executive at one of the city’s technology companies. The cloud computing solution has been developed by Prashant Mehra, who is currently testing the platform privately via the Bangalore-based company Mindtree.

“Bangalore generates about 6000 tonnes of solid waste every day of which 15 to 20 per cent is dry and recyclable,” Mehra of Mindtree stated. This is a result of an expansion in the city’s population from 4.3 million people in 2001, to about 9.6 million as of 2011; transforming a calm and relatively small city into a glass-walled hub of technology companies seeking skilled labour at lower prices than they would pay in other countries.

Currently, the Bangalore municipal authority (BBMP) appoints contractors to collect unsorted garbage and takes it to landfills on the outskirts of the city. However, these landfills are almost full and nearby residents have complained of illnesses brought on by their proximity to this level of waste.

Also, there are no strict policies in place to separate recyclables and other kinds of dry waste that can be collected,

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sold and reused. 2012 saw the municipal garbage collector strikes in Bangalore, which resulted in the streets filling up with general waste. Not to mention the 25,000 ‘ragpickers’, who sift through this rubbish to find valuable material to sell.

“The biggest advantage of the I got Garbage platform is that it will ease out the management issues. The problem now is that we may not always be able to monitor the leaves and absences of waste pickers since we deal with about 7000 of them. This system will ease that for us and also help keep Dry Waste Collection Centre records for us,” said Nalini Shekar, co-founder of Hasiru Dala (Green Squad), who is working to support Mehra’s scheme.

There are around 25 nongovernmental organisations that are helping to improve the waste disposal process. Mehra’s I got Garbage technology network is now being tested on a limited basis among apartment building, garbage contractors, ragpickers and other groups who try and coordinate these efforts through a central computerised repository of information. The goal is to get 7000 collectors on one cloud-based system with 21 people acting as trainers and managers. The ragpickers will collect the recyclable material directly from apartment blocks that participate in the program, and then take dry waste to collection centres where they can sell it.

Up to 60 Shanghai maths teachers are to be brought to England to raise standards, in an exchanged arranged by the Department for Education, BBC News reports.

With Chinese maths pupils having the highest international test results, the National Numeracy Challenge aims to improve numeracy levels for a million people in England. They will provide master classes in 30 ‘maths hubs’, which are planned as a network of centres of excellence.

The announcement comes as a campaign is launched to raise the maths skills of adults, coming as a result of warnings that poor numeracy is costing the UK economy £20 billion per year. The National Numeracy Challenge is providing an online self-assessment test, with help for those lacking in confidence in maths.

The Chief Executive of National Numeracy, Mike Ellicock, says that 78 per cent of working age adults have a maths skill that is below the equivalent of a GCSE grade C, and that half this number only have the math skill of a child leaving primary school.

In a survey of over 2300 adults, the numeracy campaign found that over a third thought their level of maths had held them back. The OECD (Organisation for Economic Co-operation and Development) says that children of poor families in Shanghai are, on average, better at maths than middle class children in the UK. The teachers are expected to arrive from Autumn, when they will share their teaching methods, support pupils who are struggling and help to train other teachers.

go to www.asiAoutlookmag.com/news for all of the latest news from asia

t r a v e l & t o u r i s m Singapore Changi Airport is named the World’s Best Airport 2014 hangi Airport in Singapore has been voted the World’s Best Airport by air travellers for the second year in a row at the 2014 World Airport Awards, held at Passenger Terminal EXPO in Barcelona, Spain.

SOURCE: www.worldairportawards.com Here are the top ten rankings: Singapore Changi Airport Incheon International Airport Munich Airport Hong Kong International Airport Amsterdam Schiphol Airport Tokyo International Airport Haneda Beijing Capital International Airport Zurich Airport Vancouver International Airport London Heathrow Airport “Winning this prestigious award for the second year in a row, Changi Airport Singapore is showing itself to be much more than an airport,” said Edward Plaisted, CEO of Skytrax. “Changi Airport offers a travel experience in itself and continues to develop its quality standards to be named the world’s favourite airport again. Changi Airport is a wellknown leader and innovator for the airport industry and genuinely delights and surprises travellers

who are lucky enough to enjoy the airport facilities. Changi Airport demonstrates how to make the airport experience an enjoyable part of the journey that is so important in today’s fast-moving world.”

Changi Airport enjoyed double success at the awards, also receiving the award as Best Airport for Leisure Amenities. The vast array of leisure and entertainment facilities are a unique, stand-out feature for Changi Airport, and underline the dedication of this airport to ensure maximum levels of passenger satisfaction.

Mr Lee Seow Hiang, Chief Executive Officer of Changi Airport Group said, “We are honoured to be named Skytrax World Best Airport for the second consecutive year. We appreciate the support given to us by travellers from around the world.

This recognition is great motivation for us and spurs us to continue to aim higher. At Changi Airport, we remain steadfast in anticipating the needs of our customers, which is the cornerstone of the Changi Experience. We share this honour with our airport community, for their unyielding commitment to service excellence and with our passengers, for their vote of confidence.”

WORLD AIRPORT AWARDS The World Airport Awards are the most prestigious accolades for the airport industry, voted by customers in the largest, annual global airport customer satisfaction survey. The survey and awards process is totally independent and guaranteed free of any airport influence or interference in final results.

The World Airport Awards are based on 12.85 million customer nominations across 110 nationalities of air travellers, and included 410 airports worldwide. The survey evaluates customer satisfaction across 39 key performance indicators for airport service and product - from check-in, arrivals, transfers, shopping, security and immigration, through to departure at the gate.

go to www.asiaoutlookmag.com/news for all of the latest news from asia

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region’s growth in 2013, with Japan topping the overall investment volumes at US$2.7 billion, up 480 per cent on 2012, as hotel trading performance improved in line with the expansion of the domestic economy and renewed growth in corporate leisure and travel.

2013 was also a remarkable year for the Singapore hotel market with capital values reaching new records, resulting in transaction volumes of USD 2.0 billion, over ten times that

recorded in 2012, predominantly supported by the sale of Grand Park Orchard hotel and Knightsbridge retail, the City’s largest single asset transaction to date.

In third place, China accounted for around 13 percent of total investment activity, recording US$1.1 billion of transactions, as recent government announcements to improve access to financing drove investor sentiment over the second half of 2013.

Frank Sorgiovanni, Vice President, Research & Strategic Advisory, Hotels & Hospitality, JLL comments on the markets that will receive most investor attention throughout the year: “Japan, Indochina and the Indian Ocean may account for the majority of transaction volumes in 2014. Investors are gradually considering emerging hotel markets such as Myanmar and Sri Lanka where deals will be opportunistic.

The Singapore and Mainland China markets will also remain strong on the back of robust investor appetite.”

The feasibility of such a drastic change has yet to be determined. The ministry team believes that they are making good progress in setting up the school’s computer infrastructure in the Eastern part of Indonesia. All the public schools in Indonesia already have computers.

The biggest problem faced in these online tests is the internet connection. Advantageously, Indonesia’s Telkom aims to set up free Wi-Fi through the IndiSchool project for 300,000 schools in Indonesia by next year. This is designed to cover the majority if not all schools in the country.

The online exam would receive a gradual rollout. Musliar Kaslim, the vice minister of education and culture is saying that the Government will appoint 10 to 30 schools in each province as the location to hold the pilot tests next year. Each school would have different test dates and there will be more versions and variations of the exam papers. The online exam could change education forever, with other countries considering the prospect.

B u s i n e ss

Singapore Hotel Market Hits New Records SOURCE: Singapore Business Review

Hotel investment volumes in Asia reached US$7.5 billion at the end of 2013, up 218 per cent on 2012, defying all industry expectations, according to the latest figures from JLL’s Hotels and Hospitality Group.

Consequently, this makes 2013 the market’s strongest year post the Global Finance Crisis in 2007, when transaction volumes stood at US$10.3 billion, the Singapore Business Review reports.

JLL claims that 2014 will be a similar stand-out year, although transaction volumes are likely to fall on the back of limited supply, despite strong demand. Singapore, Japan and Mainland China led the

E d u c at i o n

Indonesia’s National Exam will be held Online in 2015 For the first time, Indonesia’s education and culture ministry have made plans to conduct their first ever online national exam next year, Techinasia reports.

The national tests will be conducted in school computer labs and submitted via the Internet to a server.

This will be trialled in 2015 in select schools in the country. The move is designed to cut the cost of printing the tests, as well as tightening security measures around possible cheating, amounting to a saving of up to US$25 million, or 50 per cent of the usual national exam budget.

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go to www.asiAoutlookmag.com/news for all of the latest news from asia

T e c h n o l o g y

B u s i n e ss

WeChat Pushes to Further Commercialise App

Surge in Investments on Singapore Properties among Foreign Investors: The Debate Total investments on Singapore properties among international investors surged to S$6.4 billion last year, says property consultancy Knight Frank. However analysts deny this statement, claiming they have seen a decline in foreign investors.

The above amount was nearly double the S$3.4 billion in 2012. The majority of the investments came from the residential segment, but analysts say investors are shifting their focus to hotels and commercial properties.

“The panorama” in Ang Mo Kio

by Hong Kong based Wheelock Properties, was one of the top five major transactions by international investors in 2013, standing at S$550 million. This is second to the S$1.1 billion investment on the Grand Park Orchard Hotel by China’s Bright Ruby Resources, the Knight Frank research says.

Of the five transactions, three are residential developments: The Panorama, Mount Sophia and MCL’s Jurong West project LakeVille. However, analysts say that investments in the residential segment have declined as a proportion of total sales.

“For 2012, residential investments make up approximately 65 per cent of total sales whereas in 2013, it only makes up 49 per cent with more investors looking towards the commercial sector,” Ian Loh, head of investment and capital transactions at Knight Frank stated. “There remains a large group of Chinese developers for example, who are still positive about the residential market.”

The head of real estate equities at OCBC Investment Research was keen to interject in this debate: “The bias is certainly towards commercial properties, not least because of the many bouts of government cooling measures we have seen in the last three to four years.

The outlook for residential properties over the shorter term is unfortunately negative. There are headwinds for the sector, again due to government measures that we have seen and also the looming spectra of rising interest rates.”

With hotel investments expected to rise this year, Tang Wei Leng, executive director of investment services at Colliers International stated: “For Singapore, there are many stats to support the hotel growth story, with new terminals, new tourist attractions and the Singapore government’s efforts to bring in business travellers or tourists,” he added “The hotel segment is always very attractive. It is a very visible acquisition.”

Analysis believe that although there has been a decline, Singapore will remain an attractive investment destination and that local investors still account for the majority of investments made in the country.

The Knight Frank research says total investments came to just over S$27 billion in 2013. International investors made up 23.7 per cent of the total S$6.4 billion, whilst local players accounted for 49 per cent at S$13.3 billion.

Starting today, Chinese customers of WeChat will be able to buy items through the app. The creators of the social media app, Tencent, have added support for any brands to allow customers to purchase items or services from inside the app. Customers can even use the app in retail outlets, where the user’s order in WeChat , will produce a QR code that the in-store employee can scan. The app can also be used purely for online purchasing, in a similar way to Paypal and Ebay transactions.

WeChat users in China can find this option inside some of the listed brands’ official accounts on the app. It only works with ‘service accounts’, which are those designed to support companies and retailers in offering things such as loyalty cards, customer service and online selling.

Pacific Coffee, a chain of hot beverage stores that rival Starbucks and Costa, provide an option to buy drinks through WeChat if you have an account.

Customers can then select the type of drink, the size, quantity and also how they wish to pay. Pacific Coffee have their own prepaid card, so the amount spent is automatically debited to the loyalty card.

These ecommerce spending options are available through WeChat’s own payment app, WeChat Payments.

Additionally, they have a framework for in-app purchases, allowing the app to take the functionality mainstream to all verified vendors.

WeChat now need to secure big retailers, ecommerce sites and other companies to make use of this commercial function. The results of this look promising, as there are a number of big-name companies who already have WeChat service accounts- McDonalds and Starbucks for example- so it is simply a case of waiting to see if this new payment method catches on.

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Legal Frameworks Unveiled to Enhance IP Protection in Singapore ccording to a release, companies and entrepreneurs can look forward to cheaper and faster options to settle their Intellectual Property (IP) disputes, which started on 1st April this year.

SOURCE: Singapore Business Review To enhance the current IP services available in Singapore, the Intellectual Property Office of Singapore (IPOS) is collaborating with the World Intellectual Property Organisation Arbitration and Mediation Centre (WIPOAMC), to offer a new option for patent disputes filed at a national IP office.

Disputes such as inventorship or entitlement disputes, or patent revocations, often involve complex technical or scientific issues. This new option will allow disputing parties to submit such issues to an expert of their choice to make an assessment. The current Registrar of Patents adjudicates all the relevant issues in dispute in patent proceedings before him.

As part of this collaboration, WIPO AMC would assist with the appointment of a suitable expert, if required, after consultation with the disputing parties. The expert will be chosen from WIPO AMC’s panel of experts from across the world, who have specialised knowledge relevant to IP issues in a broad range of technical and scientific areas.

Some examples of fields from which experts could be called upon are IT,

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telecoms, pharmacy, engineering and life sciences.

Expert determination is generally confidential and binding. This option is also very flexible as the parties involved can choose the issues for expert determination. Alternatively the parties could also agree on nonbinding expert determination to guide their negotiations or even rely on the contents of the expert determination as evidence for their case at IPOS, if parties cannot resolve the dispute between themselves.

Parties enjoy special rates if they opt for expert determination under the auspices of WIPO AMC. The administration fee is reduced to SGD 500 and the indicative expert’s rates for 20 to 25 hours of preparation and expert determination per case is SGD 5500.

Hence, parties could see a satisfactory resolution of their dispute at around SGD 6000 in terms of fees towards the expert and WIPO AMC. Parties should also enjoy substantial time savings as expert determination takes only 60, 90 or 120 days (as opted by parties) from beginning to end, as compared to full blown patent proceedings which usually take upwards of a year to conclude.

The continued cooperation between IPOS and WIPO AMC through its only office outside of Geneva is a reflection of Singapore’s growing presence as an IP Hub of Asia, and as a venue for IP dispute resolution.

Director-General of WIPO, Dr Francis Gurry, said, “The introduction of the expert determination option reinforces the strong collaborative relationship between WIPO and IPOS. This shared commitment to facilitate the resolution of IP disputes which may arise throughout the whole innovation lifecycle will definitely benefit IP users, owners and creators.”

In a separate development, to allow some of the best legal minds in the field of IP in Singapore to contribute towards the development of Singapore’s IP legal landscape, four new IP Adjudicators are to be appointed.

Comprising of academics and legal service officers with expertise in a range of IP law topics such as patents and trademarks, these newly appointed IP Adjudicators will preside over IP disputes at IPOS. This will augment the existing specialist tribunal at IPOS, and grow Singapore’s capabilities in the area of IP dispute resolution.

go to www.asiAoutlookmag.com/news for all of the latest news from asia

H e a lt h c a r e

China fell by 57 per cent by 2010, tripling the reduction of the previous decade.

“One of the key global TB targets set by the Stop TB Partnership aims to reduce tuberculosis prevalence by 50 per cent between 1990 and 2015,” lead researcher Dr Yu Wang, from the Chinese Centre for Disease Control and Prevention in Beijing, said.

The 2014 World Health Assembly will look at eliminating TB and setting ambitious new targets which could include a 50 per cent reduction in tuberculosis prevalence between 2015 and 2025.

“This study in China is the first to show the feasibility of achieving such a target, and China achieved this years earlier than the target date.”

Giovanni Battista Migliori from WHO said other countries could learn from China: “The results from China show the feasibility of achieving such a target by aggressively scaling up the basic programmatic elements of tuberculosis control both within and outside the public sector.”

TB remains a big issue in many countries including India, Russia and many African nations. The call for better diagnostic tools and treatments are still needed in the fight against the virus.

2014 are all Asian and Australasian cities, as well as a few European countries.

“Improving sentiment in structurally expensive European cities combined with the continued rise of Asian hubs, means that these two regions continue to supply most of the world’s most expensive cities,” the editor of the EIU report Jon Copestake stated. “But Asian cities also continue to make up many of the world’s cheapest, especially in the Indian subcontinent,” Copestake continued.

Although Tokyo have fallen from the top of the list, they still retain the top spot for the cost of groceries and everyday food items. Most other Asian cities at the top of the list are also there for this reason.

At the other end of the spectrum, India’s major cities –including Mumbai and New Delhi – were found to be among the least expensive in the world. Mumbai’s prices are kept low by large income inequality.

The low wages of many of the city’s workers keep spending low, and government subsidies have helped them stay that way.

Damascus in Syria saw the largest drop, becoming the fourth cheapest city in the world as the country’s ongoing conflict has led to plummeting prices.

This study was conducted using the EIU’S Worldwide Cost of Living Survey, a relocation tool that uses New York City as a base. It looks at more than 400 individual prices in order to determine a result.

China Halves Its TB Problem Survey data suggests that China has more than halved its tuberculosis (TB) problem, with rates falling from 170 to 59 per 100,000 population. The Lancet report says that the success of the falling rate is due to a huge expansion of a community-based disease control programme.

Other countries could also adopt a similar approach, says the World Health Organisation. China is a major contributor to the global TB pandemic, accounting for more than one-tenth of worldwide cases.

The Lancet report is based on a 20-year long analysis of national survey data, it has revealed the progress that China has made reducing the burden, BBC News reports. TB prevalence in F i n a n c e

Singapore Named the World’s most Expensive City Over the last decade, Singapore has been moving up the ranks of the world’s most expensive cities to live in. The country has topped 131 cities globally to become the number one in 2014, reported the Economist Intelligence Unit (EIU).

The high cost of running a car combined with the city’s strong currency, the Singapore Dollar (SGD), alongside soaring utility bills have contributed to obtaining the top position. Additionally, Singapore is the most expensive place in the world to buy clothes.

The previous most expensive city was Tokyo, who topped the list in 2013.

Other cities in the top five include Paris, Oslo, Zurich and Sidney; Tokyo have now fallen to sixth place. The top ten cities in

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The New

ASIAN TIGERS C o n s t r u ct i o n In F o c u s

Asia Outlook takes a closer look at the trends in the ever growing construction industry Writer Emily Jarvis Source: AECOM bi-annual report

ith construction spending in Asia accounting for almost one half of total global construction spending by 2020, Asia is tipped to be the world’s fastest growing construction market. Recent rapid growth in the region has largely been at the expense of declines in both Western Europe and North America, according to the latest AECOM report. Until the end of the present decade alone, the region is forecast to grow at a rate of around 7 per cent a year, remaining one of the busiest construction markets on the planet.

Overview of the Market Asia continues to be the only real bright spot in the world, recognised as having the single largest regional

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market in the world. Future regional growth prospects are also exceptional when compared to the other major regional markets.

AECOM’s paper provides an overview of the construction market in Asia midway through 2013. It reviewed industry activity levels in 2012 and provides near and longer term forecasts for construction activity by region, country and city.

The findings are based on analysis of sector statistics combined with the results of an in-house market sentiment survey. AECOM and Davis Langdon KPK, an AECOM company, undertake a construction market sentiment survey in Asia twice a year.

Their surveys offer essential insights into economic activity and as they are repeated regularly, they provide an indepth understanding of the direction in which markets are moving.

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While Western economies have slowed, Asia has maintained strong growth and has been less impacted by the global economic downturn in recent years.

Asia has also become increasingly dependent on domestic demand, through burgeoning affluence and urbanisation, for its continued growth. Asia is the largest regional construction market worldwide, accounting for some 40 per cent of global construction spending in 2012. Indeed, construction spending in Asia is forecast to account for almost one half of global construction spending by 2020.

Construction activities will shift away from nonresidential structures and, instead, move towards infrastructure and then, in the longer term, to residential projects. Funding models are also evolving in Asia, with growing use of private finance, including public-private partnerships (PPP).

China

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The Continent

Vietnam

Vietnam, despite being one of the smaller construction markets in Asia, is set to see rapid growth in spending on residential, nonresidential and infrastructure projects over the next five years. In the shorter term, the property market is suffering from a downturn but this is expected to be overcome in the longer term.

China accounts for some 41 per cent of the Asia-Pacific region’s total construction spending, with expenditures of US$1.25 trillion last year. In addition, Indonesia emerges as a particularly interesting market. Construction spending in the world’s fourth-most populous country accounted for more than a quarter of the nation’s GDP in 2012, with around half of this expenditure funding infrastructure projects. In terms of market size, China is followed by Japan, India, Korea and Indonesia. However, the strongest growth in construction spending will be seen in China, India, Indonesia and Vietnam. Meanwhile, the AECOM’s survey also found that Jakarta, the capital of Indonesia, is viewed as the number one city in the region for potential market growth and profitability.

Coupled with our 40 years of experience in the market, I believe this paper will provide an insightful perspective for the industry to understand the construction trends and activities in the region...Long-term planning and managed implementation are the keys to the sustainability of the construction industry, particularly in Asia” DATO’ SRI KANDAN, CHAIRMAN AT AECOM.

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Is a Construction Boom Ahead?

World construction activity is to accelerate to a massive US$6.3 trillion by 2025, which is a staggering 70 per cent increase. This has been caused by the explosion of growth by what the Global Construction 2025 report has dubbed a new generation of “Asian Tigers”.

The report, which was sponsored by 24 major companies, found that construction will account for 13.5 per cent of world output by 2025, with activity driven by rising populations in the developing world, plus increasing urbanisation.

“Urbanisation is one of the largest challenges facing the human race.

Growth in the world’s global mega cities gives rise to major challenges for the engineering and construction industry. Some two billion additional city-dwellers are expected by 2050, giving rise to challenges around providing power, water sanitation, house, offices and transportation as well as doing this sustainably and developing new cities of the future,” say industry experts from Global Construction Perspectives and Oxford Economics.

Two-thirds of global construction is focussed in China, India and the US; however the authors of the report noted that activity in emerging Asia will be increasingly

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driven by Vietnam, Indonesia and the Philippines, which they termed the new “Asian Tigers”.

“While China is far from becoming a developed country…this challenge does not reduce China’s importance as a large and fast-growing construction market. It opens opportunities in a new generation of faster-growing Asian Tigers that will help propel regional growth,” the report detailed.

This particular report projects a growth of five per cent for Vietnam and the Philippines, which presents a marginal contrast with AECOM’s report. “Indonesia’s ‘Key Economic Corridors’ are centred on growth of key industrial sectors and building the necessary infrastructure to support economic growth,” the Global Construction 2025 report claims.

Overall, AECOM’s report shows that Asia’s construction market offers excellent prospects for growth and profitability over the short, media and long term time scales. Both reports would seem to conclude that Asia will continue to lead the way in the construction markets for at least the next decade, meaning that any considering investment in this prospering industry can do so without fear and trepidation of the unknown; the facts speak for themselves.

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India

Given its population size comparable to that of China, India offers a significant level of opportunity; however, its construction sector is only about one-third of the size of the China market. With public investment levels likely to be constrained, India’s growth will greatly depend on its ability to attract private finance.

Since this report, AECOM have released a second publication, which has earmarked growth potential in the Philippines and Myannmar, highlighting the following key trends: The residential sector in Asia appears to be gathering some momentum Respondents are slightly less optimistic regarding the future prospects for construction in Asia Indonesia is the top-rated country in terms of potential construction spending growth in the medium term The Philippines (short term) and Myanmar (medium term) are identified as countries with potential for significant future growth in construction Upcoming parliamentary elections in Indonesia and India are expected to have a negative impact on near-term construction prospects in both countries

Japan

Japan is also indentified as a key growth market through to the end of the decade.

Japan is expected to see sizeable growth in construction spending through to 2018 as the earthquake/tsunami reconstruction effort gathers pace. However, the reconstruction is only expected to provide a short-term spike in construction activity which is likely to return to trend later in the decade.

A lack of investor confidence in Thailand is expected to affect construction spending in the short term.

For more information on AECOM and their projects, visit:

www.aecom.com www.aSIAoutlookmag.com

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Vietnam The hoT spoT For reTAiL iNVesTMeNT

could Vietnam become the new foreign retail centre of asia?

Writer Matt Bone

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hen foreign companies look to invest in new locations in asia, Vietnam is not the first country in that normally springs to mind. with powerhouses such as china, Japan and singapore dominating the asian markets, Vietnam has had little in the way of investment pulling power but things are looking like they are about to change. foreign investors in Vietnam’s retail markets have been steadily increasing over the last 3 years and currently account for about 40% of over 700 shopping centres, market chains and centres of trade across the provinces. it is predicted that Vietnam’s commodity market will see a growth rate of 14 percent annually during the 2014-2015 period, and foreign investors are forecast to further dominate the domestic market.

The growing Retail Market

Vietnam’s retail markets have grown considerably since 2000. according to investvietnam.vn, the total value of retail goods and services in 2010 in Vietnam reached 1,561 trillion VnD (about us$78 billion), up 24.5% over 2009. in particular, retail services keep the overwhelming proportion of more than 79% compared with other sectors such as hospitality and catering (both are around 11%) as well as tourism services (almost 10%). a lot of this new found market wealth is being put down to the influx of foreign investors bringing big name companies into the Vietnamese economy. companies such as the singapore based Shop&Go, who now have 103 stores nationwide and Circle K, a texas based shopping market, boasting 73 outlets in the country. these companies have flocked to Vietnam in order to cement their brand dominance in the asia market.

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Japanese company Family Mart are well on their way to meeting their target of opening another 50 corner shops in Ho Chi Minh City (HCMC) by the end of 2014. They have grown their outlet strength to 34 outlets after only being in the country for five years.

Another foreign player, Big C Express, operated by French retailer Groupe Casino, has also been expanding gradually in the southern city.

Japanese retailer Aeon plans to open two trade complexes each year in the country, until 20 have been built by 2020 at a total cost of US$1.5 billion.

Aeon has also joined forces with the Trung Nguyen Group to develop 500 Ministop convenient stores in from 2012 until 2017.

Statistics show that 21 foreign retailers are currently present in Vietnam. At the end of 2012, there were about 130 trade centres and

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700 supermarkets nation-wide. Those numbers are expected to reach 180 and 1,200 respectively by 2020, according to the Vietnamese Ministry.

A lot of this new found market wealth is being put down to the influx of foreign investors bringing big name companies into the Vietnamese economy�

So why has Vietnam become such a hotspot for this overseas investment?

Vietnam is a growing country with a population of over 90 million, and as the average income per capita of Vietnamese people has been slowly rising, so has the population’s retail demands. With a population boom, food services and food manufacturing have become amongst the most sought after products in the market, and investors have been quick to capitalise on this.

With a large number of the populous still living in rural, untapped areas, a higher than before estimated population growth and increase in the

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number of younger people moving to urban areas, Vietnam has all the traits of an increasingly emerging market.

With a steady rise in income, strong economic development along with large young population and workforce, Vietnam is quickly becoming regarded as the new Singapore. Offering increasingly upgraded infrastructure, robust development of the tourism industry and a high consumer spend, the country is showing why it has all the necessary tools in place to become a stronger market over the next five years.

Vietnam’s GDP reached US$102 billion in 2010, making Vietnam a promising market for high-tech products and services. With an average GDP growth rate of 7% per year in the period 2006-2010, Vietnam ranked second among Asian countries with high GDP growth rate, with the average growth rate in industry and construction at 7.94% per year and service industry at 7.7% per year. Vietnam continues to prove to be a highly sought after foreign investment centre. A trend of import surge in the coming years will become evident due to Vietnam’s AFTA (ASEAN Free Trade Area) and WTO (World Trade Organisation) commitments to lift tariff barriers for imported products.

According to a December 2005 forecast by Goldman Sachs, the Vietnamese economy will become the world’s 21st-largest by 2025, with an estimated nominal GDP of $436 billion and a nominal GDP per capita of $4,357. In 2012, HSBC predicted that Vietnam’s total GDP would surpass those of Norway, Singapore and Portugal by 2050.

Under the agreements of the World Trade Organization, which Vietnam has been a full member of since 2007, Vietnam will allow foreign retailers to set up businesses with 100 percent foreign capital as of January 2015.

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In addition, when Vietnam joins the proposed Trans-Pacific Partnership (TPP), the import tax rate will be decreased to zero percent, benefiting consumers who will be able to access high quality products from the United States and Japan. In that context, a lot of risks and challenges will be posed to Vietnamese businesses.

In recent years, import volume from China, Taiwan and USA has seen a steady growth while there is an opposite trend for imported products from EU countries. Goods can be distributed in Vietnam in two ways – either directly or through distribution companies of wide network of distribution channels.

The Changing Face of Vietnam’s Markets There have been several different retail types that are seeing good growth and are developing their customer base in Vietnam. The emergence of the modern retail formats and the participation of foreign retailers have brought a breath of fresh air and changed the face of retail services in Vietnam, bringing more choice and convenience for consumers.

Although the modern retail channels have many advantages in attracting customers and this is forecast to grow strongly in the future, shopping at traditional retail market still accounts for a high proportion until 2015. Under competition pressure especially from modern retail channels, the local market systems and other forms of traditional retail in Vietnam have been renewing and upgrading infrastructure as well as their services to bring more benefits to consumers.

Retail space available in Vietnam is a hotly contested commodity. Retail space has always come at a high premium in city locations. Moreover, it is difficult to get hold of space when the cities are relatively small and in varying locations. The city spaces that are available have substantially higher rent prices than rural locations.

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I N V E S T m E N T

iNVesTMeNT proFiLe 20

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Singapore asia outlook takes a closer look at singapore’s investment potential Writer Emily Jarvis SOURCE: www.edb.gov.sg

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attracting Business with one of the most stable political climates in the world, singapore has invested most of its energy in developing commerce and industry. in less than half a century, the city has achieved many impressive economic milestones in infrastructure, output and talent development. in order to attract business, the government keeps its tax rates and tax laws competitive, taking a strategic, holistic approach towards stewardship of key pillars of the economy, such as petrochemicals, electronics and clean energy. most recently, it has joined a relatively new initiative called Future

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ingapore boasts commerce, industry, heritage, culture and entertainment all on one island just over 700 kilometres in size. the country has a warm tropical climate of between the average maximum of 31°c and a minimum of 23°c. this little nation is home to the busiest port in the world, is one of the world’s most prolific oil refining and distribution centres, a leading supplier of electronic components and a financial centre in Asia, just to name but a few accomplishments. the country is known for its integrity, quality, reliability, productivity, rule of law and enforcement of intellectual property rights; assets which are essential in the singaporean knowledge economy. new businesses looking for opportunities should know that Singapore stands firmly on a solid foundation built out of trust, knowledge, connectivity and life; these are all compelling attributes that come together to form a conducive environment for companies looking to move to expand into the region with singapore as its base.

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Singapore. this is designed to develop and test brand new ideas and solutions in the areas of urban living, wellness, ageing and healthcare and lifestyle products and services. the global competitiveness report 2013-2014 by the world economic forum, revealed that among its asian counterparts, singapore is the most competitive asian country, second in the whole world to switzerland. with such a strong trade and foreign investment, singapore’s business environment has won accolades, in areas ranging from business legislation to government labour relations. the world Bank has, in its 2011 report, ranked singapore as the world’s easiest place to do business. singapore has established an impressive reputation in many industries including finance, oil and gas, electronics, manufacturing, education, healthcare and it. with increased possibilities in filmmaking, technology, digital gaming, biomedical sciences and other new emerging technology sectors, the forecast for the future of the country shows strong promise.

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iP Regime

It is clear that Singapore takes the ‘worklive-play’ approach very seriously”

the country has nurtured a robust intellectual property (iP) regime, as the preferred location for innovation. a reliable iP environment is crucial. Singapore has a significant commitment to develop a strong domestic regulatory framework to protect iP rights; they are currently rated the best place in asia and 7th in the world for iP rights protection, the imD world competitiveness report stated in 2011. similarly, the world economic forum’s global competitiveness report 2011-2012 ranks the island as having the best iP protection in asia, the second best in the world. the government has always adopted a pro-business policy, regardless of world economic situations or crisis. it has taken tough measures including reducing corporate tax rates, lowering employers’ central Provident fund (cPf) contribution rates and capping office rental rates.

Living in Singapore Singapore offers an ideal living environment, especially when you

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are raising a family. the healthcare system is unrivalled in the region and the local education system emphasises bilingualism. those interested in enrolling their children in a school that abides by the system of their own countries, can also approach the many international schools here. in 2013, the average literacy rate of residents aged 15 and over was 96.5 per cent and home ownership of 90.5 per cent. the crime rate in the country is very low, at 549 per 100,000 in 2013. it is also one of the cleanest and greenest cities in the world. Public transport is well-integrated and convenient to use, boasting world-class communications networks; in singapore, getting superfast broadband is a given. in the mercer’s Quality of living survey 2014, singapore is the highest ranking city in asia, ranking 25th globally. as a consistent top performer, it is clear that singapore takes the ‘work-live-play’ approach very seriously. one in three persons in singapore come from another country, which adds to the unique heritage blend, demonstrating the coming together of different cultures, lifestyles

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and religions and their ability to coexist harmoniously.

World’s Top labour Force

Singapore is the place to be for those wishing to set up in construction and consultancy”

the multi-cultural singaporean workforce is highly educated, motivated, and productive and is proficient in English language. The country has a large base of engineering talent, with a number of engineers in universities and polytechnics expanding steadily each year, in addition to the sizeable pool of skilled technicians. singapore is the place to be for those wishing to set up in construction and consultancy. an open immigration policy has enhanced singapore’s talent pool, giving companies the opportunity to source the best personnel from anywhere in the world. in addition, a vast array of training and scholarship programmes are frequently developed by the government, in tandem with industry partners and educational establishments; such initiatives ensure that the workforce is future-ready. all this has helped produce a labour force that is ranked number one in the world for the last 30 years.

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Visa entry

the purpose of obtaining a visa is to facilitate entry into singapore, ideal if you intend to do business regularly in the country or are looking at exploring the opportunities it has to offer. Be sure to check with the singapore overseas mission in your country on the Visa requirements for entry into singapore. you will also need a letter of introduction from a singaporeregistered company that is to be submitted with your application.

R&D Innovations of course, rapid business innovation requires world-class research and development facilities and expertise. the agency for science, technology and research (a*star) ensures that singapore has both in ample supply. with twelve research centres dedicated to a multitude of technological disciplines, singapore attracts a world-class community of researchers and specialists from the west including america, europe and the Asia Pacific region. these research and development facilities have grown significantly over the last decade, drawing upon top scientific and creative talent, nurturing collaborations between the public sector and private enterprises. today, singapore holds global leadership positions in areas of manufacturing such as electronics and petrochemicals. the city-state remains an attractive base for complex manufacturing activities, in tandem with its move towards a more knowledge-centric and research-based economy. this emphasis on innovation and capital-intensive activities and a globalised workforce has shaped singapore into a city-state where chinese and indian companies can internationalise, where american and european companies make their entry into asia; and where views on the future of this dynamic and fastevolving region can be forged.

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Logistical Advantages

Singapore attracts a world-class community of researchers and specialists from the west”

with an advantageous geographical location, singapore has become one of the world’s top transportation hubs for sea and air cargo. the country’s container ports are the busiest in the world, offering a choice of 200 shipping lines with links to some 600 ports in over 123 countries. changi international airport is linked to some 200 cities in 60 countries, with about 5400 weekly flights, providing convenience and effective connectivity for passengers and cargo. the changi airfreight centre is a 24-hour, one-stop hub for the storing, moving and repackaging of goods without the need for documentation and custom duties. this has drawn around 6000 logistics providers to singapore, including 21 of the world’s top 25 third-part logistics providers.

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singapore currently has the most extensive network of free trade agreements (fta’s) in asia, with agreements signed with key economies such as us, Japan, australia, new Zealand, members of the european free trade association, Jordan, china, chile, south korea, india and Panama. furthermore, negotiations are in progress for fta’s with the middle east and south asian economies. additionally, singapore has signed 35 investment guarantee agreements (iga’s), designed to help protect investments made by singapore-based companies in other countries against noncommercial risks.

The highly-efficient Mass Rapid transit system, buses and taxi services make getting around the island an effortless feat. With a 99 per cent broadband reach across the population, companies here

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have the necessary land, air, sea and telecommunications links to operate successfully. international and regional connectivity now stands at 27.6 tbps to more than 100 countries.

Singapore is not just an excellent business location, it is also an attractive and technologically advanced place to live in”

Secure and Solid Investment Opportunities in summary, singapore is not just an excellent business location, it is also an attractive and technologically advanced place to live in. living in singapore is a vibrant experience, boasting excellent quality of life prospects, easy regional access, low crime rates, political stability, high standards of infrastructure and healthcare, as well as a cosmopolitan lifestyle.

for more information visit: www.edb.gov.sg

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L e a d i n g C o m p a n i e s sia outlook is a leading business to business publication that promotes and showcases the leading companies on the Continent. The digital and print publications are aimed at boardroom and hands on decision-makers in a wide range of industries, reaching over 175,000 business executives every month. With over 11,000 unique visitors to our website on a weekly basis asia outlook is the platform to promote your business success. each month we feature leading companies and business executives by profiling their operations in their own words. Covering all aspects from supply chain, investments and developments, best practice, innovation, growth plans and future project and products we aim to promote all that is good about industry, economy and business. producing business profiles across all sectors and regions of asia we give companies the opportunity to tell their story to our readers.

Read on for this month’s profiles!

Emily Jarvis Sub-Editor

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If you want to enjoy the exposure and coverage we can offer please feel free to contact me and we can discuss the opportunity at length. Tell us your story and we’ll tell the world.

emily.jarvis@outlookpublishing.com

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with its current growth strategy, lian Beng are geared to become the largest home-grown singapore construction group Writer Matt Bone Project Manager James Mitchell

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stablished in 1973, lian Beng group is one of singapore’s major home-grown building construction groups with integrated civil engineering and construction support service capabilities. the group is principally involved in the construction of residential, industrial and commercial projects and civil engineering projects as a main contractor. the company originally started with 5 supervisory staff and 20 general workers, and now have more than 400 workers with an annual revenue of about half a billion singapore dollars.

Jeffery Teo, Construction Director of the company, said of the company’s diverse portfolio: “we are primarily a main contractor for general construction work, with a Bca grade a1 rating. our construction support services also serve third parties such as other construction companies. apart from construction, we also engage in property development, mostly through joint ventures.” lian Beng’s status with the Building and construction authority (Bca) as an a1 grade contractor in general Building enables it to tender for public sector building projects of unlimited contract value, while its a2 grade in civil engineering allows it to handle engineering projects of up to $85 million in contract value. through its years of experience and solid track record, the group has also established a solid reputation for its ability to handle large-scale and complex projects.

More Than construction

lian Beng are an integrated construction group, with an extensive and comprehensive set of construction support service capabilities, allowing them to manage huge construction projects

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Lian Beng’s Recent Construction Projects in Singapore M Space: Industrial development project at Mandai Estate The Scala: Flat development at Serangoon Avenue 3 Hedges Park: Condominium development at Upper Changi Road North Waterfront Isle: Condominium development at Bedok Reservoir Road Eco-Tech@Sunview: A light industrial development at Sunview Road, Pioneer Road Tampines Industrial Crescent: Design and erection of an industrial development, Tampines Industrial Crescent A 14-storey hotel at 122 Middle Road The Inflora: Condominium housing development at Flora Drive Skies Miltonia: Condominium housing development at Miltonia Close Thomson Grand: Condominium housing development at Upper Thomson Road Bartley Ridge: Condominium housing development at Mount Vernon Road Oxley Tower: 32-storey retail/office development at McCallum Street Midtown: 12-storey mixed development at 1189 Upper Serangoon Road

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and ensure they are completed on time. The company have an excellent track record as a main contractor for almost all types of general building projects for more than 40 years. “We have the most extensive and comprehensive construction support service capabilities available to us, such as machinery, equipment and engineering, scaffolding and metal form. It is vital to our projects that we have as many of the facets we need including ready-mix concrete, reinforcement bar fabrication, construction resource sourcing and management and training of foreign construction labour,” cites Teo.

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Competitive and Productive Initiatives

Every industry faces challenges and hurdles to overcome, and with the global economic crisis still being very much felt across Asia, the construction sector has been an area greatly affected by industry changes. “The rising construction material cost has been one of the biggest challenges we have faced in this industry,” says Teo. Furthermore, labour costs are also on the rise in Asia, which can be put down to several reasons but are predominantly due to a higher foreign worker’s levy as well as a general tightening of the amount of foreign workers a company can use. Lian

Beng have also been faced with the rising cost pressure from the foreign worker’s levy which will increase construction cost.

Conversely, Lian Beng have encountered a lot of opportunities as there has been an increase in the overall construction demand in Singapore, as projected by the Building and Construction Authority (BCA).

The government has implemented a significant number of initiatives to improve productivity in the construction industry. “Companies that are more competitive and productive will eventually be more successful, and we definitely aspire to be one of those companies,” Teo says.

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noteworthy awards

in 2010, the ritz carlton residences construction was awarded the green and gracious Builder scheme

in 2012, lian Beng group ltd was one of only four companies from singapore to make it to forbes asia’s “200 Best under a Billion” list

in 2011, lian Beng group ltd was awarded as runner-up for the “most transparent company” in the construction category in the 12th sias investors’ choice awards

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in 2012, lian Beng’s projects, spottiswoode residences and centro residences, were awarded the rosPa gold award for occupational health & safety award 2012 by the royal society for the Prevention of accidents (rosPa)

in 2012, the company bagged a further four awards through the skilled Builders competition organised by the Building and construction authority (Bca) for driving awareness of construction productivity

In 2013, lian Beng’s wholly-owned subsidiary, millennium international Builders Pte. ltd., won the construction excellence award from Bca

In 2013, the company’s wholly-owned subsidiary, l.s. construction Pte ltd, was awarded the rosPa gold award for occupational health & safety award 2013 by the royal society for the Prevention of a ccidents (rosPa)

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By keeping to our core values, we are very well placed to focus on serving our clients and helping them achieve their business objectives”

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Hotel & Residential Commercial & Institution Environmental Aviation

Urban Transportation

Underground Infrastructure

Innovative Engineering Solutions for Tomorrow’s Challenges Urban Transformation with Triumph in Sustainability

Talented Building Backed by Strong Plans

Lian Beng’s success as one of the top Asian construction companies stems from the constant application of core values, such as teamwork, integrity, innovation, excellence and commitment.

“By keeping to our core values, we are very well placed to focus on serving our clients and helping them achieve their business objectives. We challenge ourselves to execute projects flawlessly, and to consistently deliver the highest quality of service to our clients. We always seek the best talent and promote personal and professional development with all our staff,” Teo explained, indicating the company is constantly striving for perfection.

Lian Beng have created a strong plan for the future in regards to growing the business. The company are aiming to continue to be more integrated in the construction business by strengthening their presence along the value chain.

The company are also setting up an asphalt premix manufacturing facility, which will be operational by the end of 2014; further adding to their range of construction support services. Mr Teo is also looking towards creating new revenue streams by diversifying: “We will also continue to seek more recurring income streams, such as dormitory business with our present construction capabilities and track record, we will continue to replenish our order book. We believe that by continuing our current growth strategy, we hope that we can position ourselves as the leader in this industry.”

Civil & Structural | Geotechnical | Mechanical & Electrical | Project Management Singapore - Abu Dhabi - Beijing - Dubai - Kuala Lumpur - Tianjin - Vancouver

KTP Consultants Pte Ltd 3791 Jalan Bukit Merah | #05-18 E-Centre@ Redhill | Singapore 159471 Tel: +65 6273 5622 | Fax: +65 6273 8454 E-mail: info@ktp.com.sg | Website: www.ktp.com.sg

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L i e b h e r r - S i n g a p o r e

Asia’s

Artisans Liebherr-Singapore are proving that cost effective solutions and high quality services are the key to success Writer Matt Bone Project Manager James Mitchell

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iebherr-Singapore started out as a representative office for ship and offshore cranes in 1985. In 1994, the company expanded their sales and after-sales services with a bigger diversity and range of products including earthmoving equipment, crawler cranes, tower cranes, mobile cranes and port equipment. In 1995, Liebherr-Singapore added an aerospace division to repair Liebherr aerospace components which is already in use by several companies.

By the middle of 1998, Liebherr had added refrigerators and freezers to their sales portfolio.

Currently, the company have more than 230 staff who are housed in a prominent five-story building close to downtown Singapore, enabling them to be close to their customers in the heart of Singapore.

Albert Chua, Liebherr-Singapore’s Managing Director, commented on the company’s steady but positive growth: “Business has increased steadily, from a turnover of €40m in 2004 to €150m today. This is down to the timely and costeffective solutions we provide for the customer and our constant evaluation of our core services and business structure.”

A Busy Year Liebherr have had a very successful and productive 12 months. Each division of the company has developed and established a positive business model and made encouraging market strides in their respective industries, ensuring the name Liebherr is the first name mentioned for its crane services.

One such division of the company really excelling has been mobile cranes, where sales of the product have constantly been high as Chua explains: “Liebherr mobile

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cranes are very well received in the singapore region, with our crane capacity ranging from 30t to 1200t, enabling us to cater for a wide range of company requirements. our customer, moh seng crane Pte ltd, recently took delivery of our latest ltm 1750-9.1 in January 2014, the strongest 750t crane in its class. we have worked with moh seng for many years now and they continue to stand by our world class products.” other divisions of the company have seen equally promising sales for the last year; including the tower division and earth moving division, who are both seeing steady sales and service requests in myanmar, hong kong and malaysia. liebherr have recently appointed new distributors and dealers for their earth moving division in Vietnam, indonesia and thailand and intend to participate

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more actively in these markets over the coming months. it is this global presence that makes liebherr such a market leader. “we have participated in mines, building development and infrastructure work in several asian countries and we have delivered the first Liebherr luffing tower crane (180hcl) to myanmar for the construction of their Junction city project in downtown yangon. we will continue to support our customers with technical and support services on every piece of equipment we sell. that is the liebherr way, no matter what the problem, we will always endeavour to help you as quickly as possible,” chua cites.

Constantly Improving liebherr-singapore, although a strong market leader, are not about to rest on their laurels; they

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Lieb h err - S inga p ore

No matter what the problem, we will always endeavour to help you as quickly as possible”

are constantly looking for new ways to improve the company and the services they offer. In line with the aviation sector in APAC, Liebherr’s Aerospace division have continuously expanded their local repair capabilities. Recently, they have been further certified under ISO 14001 to implement the repairs for Airbus A380 components on their premises, making them one of only a handful of companies able to do so. Liebherr-Aerospace, Singapore’s newly established environmental system for the maintenance, repair and overhaul of aircraft components has recently been certified according to DIN EN ISO 14001:2004 by TÜV SÜD PSB Pte. Ltd., Singapore.

Mr Chua is very pleased with the awarding of the ISO 14001:2004 and how it reflects on the company: “This certification guarantees that Liebherr-Aerospace Singapore is capable of systematically controlling and reducing its industrial waste, its consumption of resources as well as its operating costs thanks to our environmental management system.”

Challenging Times With Liebherr having so many strings to their bow, challenges are likely to be faced in one form or another.

The company’s maritime division have seen a declining trend in ship building activities in South East Asia.

This has meant ship cranes have not been as widely needed and with the cheap importations from China affecting harbour mobile crane purchases, Liebherr have had to look closely at the market and re-evaluate their services.

The appliance division has been closely monitoring its activities in the Asia-Pacific region, which is widely regarded as a heterogeneous cultural and behaviour region. Chua is acutely aware of the impact this mixed-culture has on the business: “Having so many

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Albert Chua, Managing Director

Successful logistics is a question of creativity With approximately 63,000 employees at some 1000 locations in over 100 countries, the Kuehne + Nagel Group is one of the world’s leading logistics companies. Its strong market position lies in the seafreight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based integrated logistics solutions. Kuehne + Nagel is your competent partner for intelligent logistics solutions in every field.

Kuehne + Nagel Pte Ltd. 1 Science Park Road #03-01, The Capricorn, Science Park II, Singapore 117528 | Phone: +65 6339-5115 | Fax: +65 6339-5225 Email: info.singapore@kuehne-nagel.com

different countries within this region, each requiring separate mandatory energy efficiency ratings, safety approval, different capacities and finishes, has seen our appliances become a very exact market.

Understanding and overcoming such diversified requirements hasn’t been easy, but we do not shy away from a challenge and we have prevailed as have our figures, delivering 84,655 units of fridges in 2013 to countries such as China, Australia and Taiwan,” he remarked, adding that they are “confident 2014 will see bigger appliance sales.”

Liebherr have steadily grown to become a globally recognised and respected brand by sustaining their core values as Mr Chua describes: “We apply our core values in as much of our business structure as we can. We are trustworthy and honest in our relationships and services at all times. We maintain the highest quality possible throughout our innovative product range and we ensure our staff are always trained to the utmost level and should a problem ever arise, then we accept responsibility for our products and services and will always resolve a dispute in a professional manner. In short, our core values are the secret to our success this will continue to be the case.”

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T e C h N o L o g Y

Beyond Beyonics technology limited is a leading provider of advanced contract manufacturing services for original equipment manufacturers worldwide Writer Matt Bone Project Manager Tom Cullum

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ounded in 1981, Beyonics technology limited is a singaporebased leading provider of advanced contract manufacturing services to original equipment manufacturers (oems). the company provides manufacturing services to oems in the automotive, industrial, medical and Data storage segments and are a leading supplier of precision machined and stamped parts for the automotive, industrial and Data storage industries.

Beyonics technology limited aims to grow strategic manufacturing partnerships with its portfolio of world-class, leading-edge customers. this will be achieved through its supply chain leadership, vertically integrated operations and strong customer focus led by a dedicated and motivated management team. in 2013, Beyonics was ranked 17th in The MMI Top 50 EMS Providers.

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Manufacturing Market Insiders rank providers based on 2013 sales in us dollars. this is a huge achievement for the company as they have been globally recognised as one of the top electronics manufacturing services providers.

engaging the Market michael ng, ceo of Beyonics, is very much aware of the competition faced by the company in the asian manufacturing markets, but believes engaging customers from the onset of design through to the commercialisation process is key to standing out from the crowd: “competition in the manufacturing markets in asia and especially in singapore has been very tough. we strongly believe that by engaging our clients throughout the commercialisation process, we can garner a much greater insight into their thoughts and ideas and adapt our processes accordingly. to summarise, by

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manufacturing talking to the client about their needs, we can design and tailor our service to suit their individual needs.” the last 12 months have been challenging for Beyonics. with the global economy still in the doldrums, manufacturing has seen a slowdown and growth has been measured. “our clients have been very careful about the end demand for their products and are less willing to build too much inventory ahead of actual orders in the past year or so. it has been a muted period for us, we haven’t seen significant growth in 2013, but when you think the industry as a whole only grew about 2 percent then you can see we are not the only ones affected,” Ng remarked. however, the market is not expected to remain quiet for long, and Ng is confident that the small growth and recovery seen in the us and europe is cause for optimism among companies operating in asia:

We have built up a small war chest and are looking at making strategic acquisitions to advance our foothold in the Automotive, Industrial and Medical sectors”

“i believe the shoots of recovery seen in the us and in europe are signals that the economy is beginning to turn a corner. i think by the end of 2015, the markets will have picked up by at least 8 per cent growth, if not more,” emphasised ng, clearly focusing on the future positives.

Services for Sectors the contract manufacturing services provided by Beyonics include printed circuit board assembly, full turnkey system assembly, testing, packaging and distribution, manufacturing of plastics injection moulded parts and precision machined as well as stamped parts. the precision machining services include the design and fabrication of tools, aluminium die casting and precision machining of bespoke items. Beyonics has two manufacturing facilities in singapore, three in malaysia and two more in china, which have all helped the

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B e y onics

T ec h no l og y

Singwide Technology Singwide Technology is a subsidiary of Twin-net Group and has a strong background in passive components with almost 20 years of history.

We are specialised in full turnkey solutions including manufacturing of printed circuit boards.

Singwide Technology is dedicated to providing the best service to ensure your production runs smoothly.

We currently operate a VMI system to assist customers in managing their production forecasts.

Base on the core beliefs and experiences of our company, we have been able to support the needs and requirements of Beyonics Technology and for all our customers.

Michael Ng, CEO

Tel +65 6846 4677 Email Dave@singwide.com.sg Haze@singwide.com.sg

www.Twin-net.com.sg company to grow their manufacturing footprint in those countries.

The company has realigned their resources to focus on the current and new clients in the Automotive, Industrial and Medical industries with bigger emphasis, and expects these sectors to gain more traction over the next 12-24 months. As part of this growth initiative, Beyonics plans to start two new campuses in Singapore and Malaysia. These campuses will align the current manufacturing locations in each of the countries into one business centre. “With this new campus integration package we are rolling out, we will be able to have our mechanical solutions next to electronic capabilities and we can then integrate our services, saving logistical time and eventually money for the company. After all, by having everything at one location, the company can vertically integrate its operations,” Ng remarked.

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Beyonics has historically put emphasis on the hard drive disk industry, but shifted its focus to Automotive, Industrial and Medical sectors from last year. The company is engaged with major OEM manufacturers, working closely alongside them in order to generate a competitive advantage, delivering sustainable economic returns. Beyonics is strong advocates of end to end lean manufacturing, adding resources which significantly improve their utilisation of their assets base as Ng explains: “Through our activities, we have been able to increase our efficiency and rationalise the assets being deployed by our company.

Operationally, this has enabled us to generate a fair amount of free cash flow, which along with the assets rationalising program, allowed us to pay off all our bank loans and become much stronger financially.

We have built up a small war chest

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and are looking at making strategic acquisitions to advance our foothold in the Automotive, Industrial and Medical sectors.”

Supplying the Client A strong supply chain is a critical part of any business model and Beyonics is acutely aware of its important impact on profitability, revenue growth and continuity of supply to their clients. “We utilise both local and foreign suppliers for our manufacturing needs and we have put in place contingency plans to mitigate any supply disruptions.

In addition, we are focused on agility and flexibility in responding to the changing situations. We have suppliers who are located in various parts of the world. So should there be a sudden disaster in a facility in one country which is rendered non-operational, we can tap on the supply from the facility in another

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country and alleviate any supply disruption to our clients,” Ng exclaims.

“Success is no secret” Beyonics has grown considerably since its humble beginnings in 1981, to now be widely considered a significant part of the ecosystem in OEM manufacturing solutions. What is the secret of their success? Michael Ng has a simple response: “There is no secret. We have competitors who are constantly forcing us to adapt to new ideas and strategies on a weekly basis. Realistically it is our ability to respond to the changing needs of the customer which separates us from the crowd. The products we manufacture on behalf of our customers are of the highest quality, competitively priced and we have a world class supply chain which can deliver these products within tight deadlines. In short, success is no secret, it is nothing more than being able to deliver a product and service a client needs within a price range and timescale to suit all parties.”

With this simple mantra driving the company forward and a constant, watchful eye on market trends, Beyonics is well placed to become not only market leaders in Asia, but on a global scale.

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Smart mETERING The FuTure oF

SOluTIONS eDmi limited is one of the leading smart metering solutions providers in the world Writer Matt Bone Project Manager Donovan Smith

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or more than 30 years, energy companies all over the world have relied on eDmi to deliver the flexibility and reliability they need and the innovative solutions they demand. eDmi’s experience, a proven track record, and having installed millions of eDmi multi-functional smart meters installed globally, mean that eDmi’s products have met and exceeded clients’ expectations that led them to become a global energy solution leader. founded in australia in 1978, the company have been based in singapore since 1997. eDmi have grown to 20 offices globally spreading throughout the region of latin america, africa, asia, europe and australasia. eDmi ceo lee kwang mong is very pleased with just how far the company have come in recent years: “when you look at the progress the company have made over the last 5 years, you can see just how successful we have been. we have seen our meters become commonplace across asia and now they are a staple product in the european markets, especially in the uk, where we have seen strong sales, which continue to grow monthly.”

a Smart Solution a smart meter is an electronic device that records consumption of electric energy at intervals and is able to communicate with a central system. this secure communication is twoway: the meter provides information to the central “head-end” for monitoring and billing purposes, but it is also possible to perform remote parameterisation. lee believes this technology is not just a simple remote recorder, but a useful automated system that can become fully integrated into a company’s network: “our smart meters are not just a

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Kg TechnologieS

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g technologies, inc. is a leader in switching solutions for the world’s energy management

market. having shipped well over 40 million latching relays to every corner of the globe, we have consistently risen to meet the challenges of this everevolving market.

Decades of engineering and logistics expertise give us the insight to design innovative solutions that are leading the industry into the next generation. as we continue to look ahead to the needs of the smart energy market, we understand the value of reducing

Yoshihide Watanabe, chairman of the board and Lee Kwang Mong, CEO

failure rates, maintaining consistent lead times, consolidating our clients’ supply chain, and delivering a

system that enables you to remotely view data on energy consumption, but are considered a vital part of a company’s infrastructure due to their detailed reports and real-time readings. with advancements in technology, our meters can become fully automated needing only marginal supervision and servicing.”

european Market Metering eDmi have been a constant presence in the uk market for several years now, having seen their smart meters installed in both homes and businesses alike. recently, eDmi announced that they have signed a contract to provide meters and a communications hub as part of the Smart Meter Rollout Communications Service, across scotland and northern england. the project aims to install 53 million meters in 30 million homes and small businesses across the uk by 2020.

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cost-to-performance benefit that is unmatched in the industry. we build relationships in the market around these key objectives, which

We have seen our meters become commonplace across Asia and now they are a staple product in the European markets, especially in the UK, where we have seen strong sales, which continue to grow monthly”

enable us to remain agile and to provide flexible design solutions for the evolving smart meter market. our patented latching relay technology for the smart grid changes how the world handles high current, high voltage switching. utilizing one of the largest, state of the art factories in the industry, we ensure high volume production, superior quality, timely delivery and competitive pricing. kg technologies, inc.

Toll Free Tel +1.888.513.1874 email info@kgtechnologies.net

www.kgtechnologies.net

World Class Switching Solutions for Energy Management

Latching Relays

CHALLENGE:

Reduce lead times and costs for meter base assemblies.

Meter base assembly complete with K120 latching relay, terminals, cables, and connectors.

We Rise To Your Challenge.

At KG Technologies, your challenge is our

As the world switches to a greener and smarter

solution. KG Technologies' reputation for providing

tomorrow, KG Technologies is raising the bar for

high quality solutions is unmatched. Our latest

quality, value, and service. We welcome the challenge

challenge involved going beyond designing latching

of delivering high quality solutions for your energy

relays to providing meter base assemblies.

management needs.

Our engineering and logistics team met this challenge

We work with you so that our products work for you!

by streamlining the supply chain to leverage a single source manufacturer. This approach not only reduced logistics costs and lead times but also extended KG Technologies' high quality guarantee to the entire meter base assembly—reducing complexity and saving our customers' time and money.

Toll Free: +1.888.513.1874 www.kgtechnologies.net

Switch to a greener tomorrow with KG Technologies today!

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Lybase Sdn. Bhd.

Our smart meters are not just a system that enables you to remotely view data on energy consumption, but are considered a vital part of a company’s infrastructure due to their detailed reports and real-time readings”

Operated since 2001, Lybase Sdn. Bhd. is a Malaysian company specialized in manufacturing and supply of injection moulded Engineering plastic parts, secondary process and sub-assembly.

It received One Star Award (2010) and Silver Award (2011) in SME OSH Award and Gold Class (I) in MSOSH OSH Award 2012.

With 10 years of steady growth, Lybase expands further into LED lighting. Lybase’s products are certified by JKR, IKRAM QA Services, SIRIM QAS, QAV Technologies and endorsed with GreenTAG by Malaysian Green Technology Corporation. Certified with ISO 9001: 2008, ISO 14001:2004 and OHSAS 18001: 2007, Lybase is committed to provide only the best to its customers.

Tel +607-599 7878 Email enquiry@lybase.com.my or calvintan@lybase.com.my

EDMI will design, manufacture and supply the communications hub for the northern region. The hub will enable communication with electricity meters, gas meters and the In-Home Display (IHD), allowing consumers to effectively monitor and manage energy usage. Mr Lee commented: “We are dedicated to the design, development and manufacturing of innovative smart meters and systems for the global utility industry. This selection further underlines our expertise in the market and the robust, reliable product offerings which we provide.”

In order to further cement their position as a market leader in smart metering, EDMI opened a new manufacturing and R&D plant in Europe and are looking to open another one in Eastern Europe at a later date. The creation of a local distribution network has seen the company halve the average turnaround time, from manufacturing

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Kian Soon Founded in 1977, Kian Soon Mechanical Components has grown from a hardware store to a manufacturer and distributor of advanced application mechanical components, used in a wide range of industries.

Our strong culture of professionalism and dedication allows us to penetrate demanding industries. Our products and series are used in advanced applications such as liquid chromatography machines, kidney dialysis machines and automotive vehicles.

We have a deep heritage, yet our sights are set firmly on the future.

We are constantly strengthening our capabilities and expanding our reach with offices across Asia, as we strive towards our vision of Connecting Every Product in Asia.

Tel + 65-6291-1177 Email sales@kiansoon.com.sg

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81 Genting Lane, #04-01/02 Everich Industrial Building Singapore 349566 Email: sales@kiansoon.com.sg Tel: + 65-6291-1177 Fax: + 65-6297-2714 | + 65-6295-2412 Web: www.kiansoon.com.sg

Products: Automotive Components | Bearings | Clips & Rings | Precision Fasteners & Customized Components Sensor Housing | Shafts & Studs | Compression & Tension Springs | O-Rings and Spacers & Standoffs Services: Vendor Managed Inventory | Kanban Inventory | Ship-To-Line Kitting Services | R&D Technical Assistance Quality Equipment: XRF Spectroscopy Machine | Hardness Tester Cr (VI)+ Tester | Automated Optical Sorting Machine

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to installation, in a premises from six weeks to three weeks.

The green Trend with more and more businesses and homes looking to become greener and more energy efficient, EDMI have seen a large rise in the number of smart meters and communication devices being purchased globally. with the advancements in communication and automated information collection, eDmi have created more sophisticated meters that are capable of relaying large amounts of specific information to a server in real-time. “we have seen the demand for our smart meters increase rapidly over the last 18 months due to so many businesses and private homes wanting to be greener. By monitoring exactly how much electricity they are using daily and cutting down where they can, customers feel like they are more in control of their spending and helping to save the environment at the same time,” lee explains.

expansion in 2010, eDmi opened a new manufacturing plant in china after seeing an opportunity to engage the competitive chinese labour market. with the new plant online, eDmi doubled the production of low-cost smart meters and have driven the company’s vision closer to reality, as lee explains: “singapore is no longer the manufacturing powerhouse it once was; so we made the decision to create a new manufacturing plant in china. this enabled us to greatly increase our production of meters and because the overall manufacturing costs were lower, we were able to offer a new low-cost meter to the asian market. this is a big goal for us: to ensure that every home in asia has an eDmi smart meter installed in it.” eDmi’s expansion has not stopped there. Pt eDmi indonesia have

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opened a new factory in cikarang on march 5th, 2014, adding half a million units to eDmi’s yearly production capacity and strengthen ties with Pln indonesia (indonesia’s state electricity company). mr lee said the new plant will continue the good work of factories representing the osaki group in the region: “indonesia is a very competitive market, and it is a big market; we have long term plans for working with indonesia.”

Research and Development one aspect of the company that lee is particularly proud of is the global r&D group, who constantly revisit, update and create new smart meters to utilise technological changes and advancements in the industry. “our r&D engineers have been updating our latest smart meters to ensure that they take full advantage of new technology and changing attitudes

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Our R&D engineers have been updating our latest smart meters to ensure that they take full advantage of new technology and changing attitudes from companies”

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from companies. the whole team are riding the technological wave but they always ensure they are keeping ahead of the curve and the competition,” he said. the smart meter is fast becoming a “must have” addition to business infrastructure globally, with more and more demand for smart meters becoming apparent, lee is confident the company is prepared to meet and exceed this need: “our product is a worldwide product, not just something for asia or europe. it can be used by any company or household, no matter where they are. we will always strive to ensure that the product is country specific and can be utilised fully from day one of installation. we have worked hard to make the company what it is today, but we will not sit back, instead we will push on and make sure the company is always a market leader.”

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A C C ESS T E C H

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Accesstech have the expertise to perform prominent engineering construction ranging from pharmaceutical, biomedical, electronics and aerospace to name but a few Writer Matt Bone Project Manager Tom Cullum

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ccesstech began as a tool and kit company primarily working on small installations.

Through an effective and professional approach, the company have seen steady growth in both business size and project portfolio. Accesstech now specialise in working with high-tech companies, including industrial and factory engineering and office buildings for Fortune-500 companies. Founded in 1998 in Singapore, Accesstech have been expanding their expertise into various projects including luxury hotels and commercial properties.

The company is ISO 9001, ISO 14000 and OHSAS 18001 certified.

Roy Low, CEO of Accestech, has seen the demand for the company’s expertise grow steadily and believes that Accestech are well placed to meet the growing and ever-changing needs of the industry. “We have been in business for the last 16 years and the industry has changed a lot since then.

Singapore used to be a manufacturing hub for plating, stamping plants and wafer fabs. These days, data centre, R&D facilities and biomedical science dominate the scene. Companies now want state-of-the-art equipment and services that can be technically demanding in engineering terms. We have grown and adapted our business practices, so that we can offer a service that will always be flexible and fully functional - to the highest level - which always meets the clients’ requirements,” Mr Low surmises.

Prestigious Projects The last 12 months have been positive for Accesstech. The company has been working on new engineering and mechanical systems with respected global brands Hewlett Packard, Proctor and Gamble, Illumina and Medtronic, who have expanded their production lines in Singapore. “We gained a new

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Horme Hardware Pte Ltd

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orme is dedicated to serving customers with differing buying behaviour, through multiple sales touch-points, providing convenience and timely supplies to ensure our customers can function with minimal fuss.

We see ourselves as more than a supplier, more importantly a business partner to our customers, as a business entity, we understand the need for zero downtime, and thus giving birth to our corporate slogan of “You Need, We Meet” We have a range of Trade Centres that cater to customers who prefer to walk-in and allow for “touch and feel” prior to purchasing.

We have added an Industrial Supply Division comprising of teams dedicated to Key Accounts of various industries, who require a dedicated person(s) to attend to their queries and after-sales service.

customer in Proctor and Gamble, and we have finished installing all the Air Conditioning Mechanical Ventilation (ACMV) in a new US$200 million Research and Development centre in the city. The facility is now open and we are very proud of the project, as it highlights our work with a respected brand name,” cites Mr Low. There will be a significant increase of investment in this market over the next 5 years, as Singapore has an excellent infrastructure to host these data centres. 2014 will see an investment of S$2.8 billion dollars invested in data centres in Singapore alone. Currently, Accesstech are involved in bidding for new data centre cooling system projects.

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Steady Growth in the Market With the economic climate still largely unstable, Accesstech has seen a slowdown in the number of projects they are being offered and tendering for. However, because of the high quality work being produced by the company and a client base that have strong relationships with Accesstech, Low has seen the work continue to flow in, even if this is at a slower pace than 5 years ago: “We have seen a downturn in the number of projects undertaken over the last 12 to 24 months, but the work has not dried up. We have strong relationships with our existing clients and as our work is of the highest order, we have begun to see several

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More recently we have launched an E-Commerce Division to allow for customers who like to “self-help” and procure at the absolute convenience of their workstation, home and even mobile device.

We are all about making life easy for our business partners, so they can focus on what they do best, and this is what gave rise to our webstore’s slogan of “Hardware ORdering Made Easy” Horme Hardware Pte Ltd 1 Ubi Crescent #02-01 Number One Building Singapore 408563 Tel 65) 6840 8888 Fax (65) 6840 8899 Email enquiries@horme.com.sg

www.horme.com.sg

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new clients wanting to work with us on new projects.” one sector of the asian market currently seeing a surge in projects is the aerospace industry. singapore currently has one of the biggest aerospace hubs in asia and international companies are moving into the country to capitalise on this strategic market. accesstech are keen to undertake bigger projects into this sector, with low keen for accesstech to move into this sector. “the aerospace industry is expanding in singapore at a fast rate. we have one of the biggest aerospace hubs in asia situated within the city and with the continued investment from foreign companies; the amount of work in that sector has trebled over the last 5 years. we are looking to expand our project portfolio into this sector over the coming months,” mr low said. accesstech recently undertook project work for an aerospace

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We can offer a service that will always be flexible and fully functional - to the highest level - which always meets the clients’ requirements”

engine manufacturing company, in which they designed and currently maintain several systems within the building. “The sector offers a very different challenge for us in terms of electrical and manufacturing implementation, but a challenge we are ready to meet head on,” low explains, clearly relishing the task of working in this industry.

Supply and expansion one of the biggest strengths a manufacturing and engineering company can have is its supply chain and accesstech are no different. the relationships between accesstech and their suppliers have grown in strength on the simple basis of trust, honesty and a transparent approach to business. “all business should be done this way, as it breeds an understanding between two companies that allows free and open conversation on matters

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ranging from price to quality,” low remarks and goes on to say that accesstech are always “upfront with suppliers”. expansion is a key component of any growing business, and accesstech are looking at crossing borders into other countries including cambodia, thailand and Vietnam. low believes that with the right vision and strategic planning, investment in the mid-high tech industry can really take off in these countries: “the opportunity for mid-high tech industry projects in these countries is massive. they have an eager workforce, who with the right training, could begin to build up an infrastructure that will encourage more foreign investment into the country. we are ambitious to begin these plans but we are not about to over reach. we will research and carefully plan these expansions and ensure that what we do is best for both ourselves and the country we look at.” mr low has set his sights on ensuring that accesstech become “a world class enterprise with a reputation for excellence, professionalism and service quality equal to the best in the industry.” if the company continues to grow as it has done, then this vision will soon be realised.

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Powder-Perfect

M an u fact u r i n g With expansion on the cards, SMC Food 21 are working to achieve more efficient production of their powder based products Writer Emily Jarvis Project Manager Callum Philp

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stablished in 1999, smc food 21 Pte ltd manufacture and expertly blend sugar, milk and cocoa powders for major markets in Japan, korea, indonesia and india, supplying some of the top companies in Japan. the abbreviated name stems from the three key ingredients that they process: sugar, milk and cocoa (smc), with the 21 standing for the 21st century. other products in their repertoire include ingredients for the confectionary, ice cream, beverages, bakery and sauce industries to name but a few. with an aim to provide customers with excellent service by supplying quality products and just-in-time

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hyPac PacKaging PTe lTd hypac Packaging Pte ltd was established in 1992 and pioneered the supply of high barrier multi-layer films, catering primarily to the food and pharmaceutical industries.

Our films are produced by the latest sophisticated multi-layer co-extruded blown and cast lines. the polymers used meet all ecological requirements and world physiological clearance certification centres and ec regulations for direct food contact. as a dynamic packaging company, we add value to our customers’ business by providing critical packaging solutions in a host of other technical films as well, e.g. retort films (aluminium or transparent), shrink films, etc., to meet their specific needs. we welcome you to visit our website:

www.hypacpackaging.com

hyPac Packaging Pte ltd 9 senoko cresent singapore 758265 Tel (65) 6257 0166 Fax (65) 6257 4600 email sales@hypacpackaging.com

delivery at competitive prices, smc are proud to produce a large selection of honest food goods. managing Director, my cheng, told asia outlook how the company’s mission - “Quality Blends for Quality customers” – runs through the very veins of smc: “as we supply to multinationals, it is crucial that we maintain good relationships with our major suppliers of sugar, milk and cocoa. as a result, we are able to source raw materials from all over the world, with a continued focus on quality for all our customers.” with factories in singapore, malaysia and thailand, smc are able to produce their goods in the best geographical location possible and are therefore placed to become a

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We are able to source raw materials from all over the world, with a continued focus on quality for all our customers”

very competitive supplier. currently, the company process 100,000 tonnes of preparations, with a hope to reach 120,000 tonnes in two years time; but with expansion plans on the cards, this figure will be further boosted in the coming years.

Working on capacity and Productivity smc are in the midst of increasing productivity in singapore, despite expensive production costs, as mr cheng highlights: “as a result of high costs, we have to really work on our production. therefore, we have embarked on a fully automated production line, which we expect to complete by may this year. this will

PRODUCT RANGE Our emphasis is on competitive pricing, consistent quality products and excellent after-sales customer service that even our competitors talk about.

FLEXIBLE FILMS High Barrier Liners Thermoforming Films Vaccum / Boilable Bags Shrink Films / Bags Boilable Shrink Films / Bags Lidding Films Retort Pouches Lamination Films RIGID FILMS PP Barrier Retort Trays / Cups CPET Trays SPECIALITY FILMS Aluminium Films Paperlike Films Medical Films Bag-in-Box Intermediate Bulk Containers Drum Liners Gambo Liners

No. 9 Senoko Cresent, Singapore 758265 Tel: (65) 6257 0166 Fax: (65) 6257 4600 Email: sales@hypacpackaging.com

www.hypacpackaging.com

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rusteel Design & engineering Pte ltd has experience and expertise in system design, installation and maintenance. trusteel not only designs and manufactures equipment and systems that are tailored to each customer’s needs and requirements, but also provide fast, efficient and reliable service and technical back-up. we are the ideal partner to help you in the design & installation of complete systems for conveying, dosing, mixing, weighing and packing systems. our application-oriented approach helps us to under our customers’ needs better, and enables us to offer the right solutions for many and varied applications. we have a range of systems that include standard as well as custom built products for all industry.

Tel (65) 68982822 Fax (65) 68982823 email sale@trusteel.com.sg

www.trusteel.com.sg drastically increase our capacity and productivity whilst lowering our costs.” recently, singapore in general has experienced general labour shortages, which have affected smc. “By building a new factory in PtP –Port of tanjung Pelapas in iskandar - which is due to be completed by august this year – we are not only able to shift some of the productions from singapore over to malaysia, but at the same time this will enable us to look at new projects for the singapore factory to take on.” furthermore, smc are in the midst of constructing a factory in Pinthong 3 in thailand, in a new industrial park located in chonburi Province. mr cheng explains how this will increase capacity in thailand: “this factory is a larger building, allowing us to consolidate the two factories we currently have in thailand into one by the middle of next year.”

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BT cocoa leading cocoa processor in asia with grinding capacity of 150000mt per year

We have been able to work closely with our customers in Japan, developing new products and establishing new opportunities”

Provider to over 50 countries worldwide and approved supplier for mncs our products include cocoa liquor, cocoa Butter and cocoa powder operating in indonesia, 3rd largest cocoa producer in the world, we have a differentiated competitive edge in guaranteeing supply focus on in-house buying and direct relationship with farmers by having warehouses and buying station Bt cocoa established Bt care that provides farmers with tools and knowledge to improve their socio-welfare, thereby creating a more sustainable supply chain with recognized quality Tel +62 21 558 5870 email bt@btcocoa.com

www.btcocoa.com

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smc have made a conscious choice to work with some of their friendly competitors to support each other in a tough market; consolidation of suppliers has meant some have had no choice but to give up in the manufacturing business. “we have seen this especially in singapore, where the high cost of production and difficulties in getting labour push people out of the market,” mr cheng remarks.

Developing New Products across the Region In 2013, SMC set up a new office in Japan, which Cheng indentified as their main market, and he is pleased with the results: “with this new setup, we have been able to work closely with our customers in Japan, developing new products and establishing new opportunities with both existing and new customers. we saw a big opportunity in Japan as the economy is picking up, so we expect demand for our products to increase this year.” moreover, there has been a shortage of milk powders in Japan as there has been a decrease in milk production, which is responsible for the increasing trend that more customers are buying milk powder preparations from smc. to ensure that they keep up with demand whilst maintaining quality, smc carry out quality control measures with their suppliers to make sure they are provided with the best possible quality products. “it is very important that we have a very strong group of suppliers to support us. shipping and logistics are also critical aspects that we regularly monitor.” supporting this, the company have many quality awards given by the government in singapore, as well as accreditations from international bodies. the latest award they have received is the

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AIB accreditation (American Institute of Bakery), which has been a key milestone achievement as Mr Cheng emphasised: “This is very important for our customers, especially those in the baking industry. There are only 7 companies in Singapore that have the award and we are the only nonmultinational company that have this award in this country.”

In the midst of all these new developments, SMC are also looking to expand from supplying mostly B2B customers, into conducting B2C business. “As we are going to produce infant milk powder and nutritional powder products soon, it is important that we establish this link,” affirms Mr Cheng. With the advent of new factories in Singapore to produce these new baby formula and adult nutritional powders, SMC revenues are expected to double over the next three years. “We will be selling in the region, into China and even the wider market in Asia, including India.”

With new products and factories come new training schemes. SMC conduct regular inhouse training for their production workers, placing emphasis on quality, and they often send management staff to MBA classes; sponsoring them to achieve these qualifications to great success and benefit for the business as a whole.

It is very important that we have a very strong group of suppliers to support us”

“We operate as one big family” Mr Cheng placed a great emphasis on the fact that his company operates like one big family within the Asian culture: “I am very glad to have an excellent loyal team that supports the Managing Director in whatever new business ventures the company invests in.” Having the right staff with the right mindset and the willingness to work is a key factor for business success as Cheng concludes: “Most of my staff have been with the company since day one and both understand and respect SMC’s values of absolute integrity, continuous improvement, open communication and total commitment.”

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Metal and Metallurgy china ciex exhibition centre china

19-22 MAY 2014 www.mm-china.com

indonesia’s 10 international Water, Wastewater and Recycling Technology Event th

Grand City Convex Surabaya indonesia

21-23 MAY 2014 www.indowater.com

ica-Facon exhibition

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international industrial Machinery exhibition (iiMe) alSo aPPeaRing: Vietnam international construction and Building exhibition (VicB) Saigon Exhibition Convention Centre Vietnam

26-28 JuNe 2014

www.construction-vietnam.com

luxury china Show Beijing exhibition centre Beijing

4 - 6 J u LY 2 0 1 4 www.luxurychina.com

kuala lumpur convention centre malaysia

27-29 MAY 2014 www.faconex.com

WasteMeT asia

Marina Bay Sands expo Singapore

2-4 JuNe 2014 www.wastemetasia.sg

construction Materials exp asia

hall 5, iMPacT exhibition centre Bangkok Thailand www.consmat-asia.com

concrete expo asia

19-22 JuNe 2014

18-20 sepTeMber 2014

www.malaysiasign.com

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BMaM expo asia

hall 5, imPact exhibition centre Bangkok thailand

18-20 sepTeMber 2014 www.maintenance-asia.com

Green Buildings and Retrofits expo asia hall 5, iMPacT exhibition centre Bangkok Thailand

18-20 sepTeMber 2014 www.greenbuilding-asia.com

PULIRE Asia Pacific

hall 4, imPact exhibition centre Bangkok thailand

18-20 sepTeMber 2014 www.pulire-asiapacific.com

18-20 sepTeMber 2014

25th Malaysia internation Sign and led Putra world trade centre malaysia

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hall 6, imPact exhibition centre Bangkok thailand www.concrete-asia.com

www.africaoutlookmag.com www.asiaoutlookmag.com

Asia Pacific Conference for deans and directors Kuala lumpur Malaysia

2 9 - 3 1 o C To b e r 2 0 1 4 www.mbaworld.com

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