The continued growth of economic activity in Southeast Asia is contributing to new investments and corporate activity in Singapore, says leading Singapore business incorporation portal www.GuideMeSingapore.com.
As Southeast Asian countries such as the Philippines, Indonesia, and Malaysia continue to post strong numbers, businesses in these countries looking to raise capital or widen their operations are turning to Singapore, the region’s financial hub.
Even with the global economic slump dampening overall investment activity, a total of S$2.7 billion from initial public offerings (IPOs) in Singapore has been raised so far this year. Many of these are Asian companies looking to raise capital in the global market, while also benefiting from advantages such as the ability to list in dual currencies on the SGX.
Another area where Singapore continues to perform well is corporate merger and acquisition (M&A) activities. According to Mergermarket, a total of US$24.6 billion in deals took place in Singapore during the first nine months of 2012. This can be attributed to Singapore’s status as the region’s financial and legal hub, notably its fast-rising reputation as an international arbitration jurisdiction. The city now ranks behind only Japan in terms of M&A growth.
“With the strong growth in many Southeast Asian economies, large companies in these countries are seeking to expand by raising more capital. For them, it makes sense to be listed in Singapore because the city is strategically located in the heart of the region. At the same time its standing as an international hub means that these companies can raise their global profile and widen their investor base,” said Ms. Jacqueline Low, Chief Operating Officer of Janus Corporate Solutions, a leading Singapore incorporation, accounting and immigration services firm and the parent company of GuideMeSingapore.com.
“The latest example is Filipino food producer Alliance Select Foods International, which is seeking to list on the SGX-Catalist board next year. The listing would make it the first publicly-traded Filipino company to debut in Singapore,” she explained. “Meanwhile, Jakarta-based Harita Group’s nickel-mining division plans to raise as much as US$250 million when it debuts on the SGX.”
“In India, which is located just outside the ASEAN region, big-name companies are also looking to Singapore for expansions. Religare Health Trust, which is operated by Indian healthcare giant Fortis Healthcare, raised over S$510 million in their IPO this past October,” continued Ms. Low. “Reliance Communications is just waiting for the right time to go forward with their anticipated US$1 billion IPO, while Indian private equity firm Everstone Capital Partners is set to acquire the Harry’s brand of pubs and restaurants in Singapore.”
“Of course, the more popular option for Asian companies looking to establish a global presence, particularly SMEs, is still through incorporation in Singapore. In the last quarter, there were 14,243 new business registrations in Singapore. Whether it is a subsidiary company, a branch office, or simply a representative office to do networking and market research, there are plenty of options for foreign company registration in Singapore. Regardless of whether a company decides to simply list here, or create a presence through incorporation, what is clear is that Singapore is definitely the regional destination for investment and corporate activities,” she concluded.
About Janus Corporate Solutions Pte Ltd
Janus Corporate Solutions Pte Ltd is a leading Singapore-based firm that provides comprehensive and cost-effective Singapore company registration, immigration visa, accounting and tax filing services to businesses and entrepreneurs worldwide. For more information, visit http://www.guidemesingapore.com.