Looking South continues this week with a conversation about Singapore. Eric Gau chats with Taipei Business Association In Singapore head James Chen about what the New Southbound Policy will mean for the two very similar countries.
Transcript:
Eric Gau: Hello and welcome to Looking South here at ICRT. I’m Eric Gau taking another look at the New Southbound Policy and how it will affect Taiwan’s ties with Singapore.
To tell us about that, we’ve got James Chen, the head of the Taipei Business Association in Singapore. Mr. Chen, welcome to the show.
James Chen: Hi. Hello.
Eric: Mr. Chen, Taiwan and Singapore, we already signed the ASTEP trade deal several years ago. How can the New Southbound Policy build on that to further expand trade and investment ties between the two countries?
James: For this one, ASTEP, after we sign the ASTEP, actually the two country the trading is increased year by year. More than that, Singapore, as you know, is the regional center among the Southeast Asia countries. We should take Singapore as not just a simple target market. It’s a so‑called corporation partner.
From here, we can use Singapore’s their infrastructure and facility. Also the many MMC, they set up their regional office in Singapore. From here, they can penetrate into this Asian market.
Taiwan should do the same. Probably the government should lead the business to come into the Singapore market to set up the HQ here. From here, we can further enlarge the penetration into the Asian market.
Singapore is not only just a country. It is a largest hub and also is a information hub. Also is the investment fund. The hub of investment fund to all the Asia countries. From here, you can see the many chance here. Not just only the trading in between the two countries.
Eric: Taiwan and Singapore, they share many similarities. They’re both relatively small nations. We have similar demographics and languages. How can the Taiwan government utilize this to further improve ties under this New Southbound Policy?
James: As I mentioned earlier, here in Singapore we will position them as a strategic partner, as a corporation partner. From here, we can set up a platform. Singapore as a platform for Taiwan to penetrate into this Asian. We can use Singapore as R&D platform.
Because so many MMC and even Taiwan big company they have set up a R&D center here. In Singapore they have a parent people here. They have an investment fund here. They have all kind of information here. Easy to set up that here to be the R&D center.
From here, you can diversify to different countries. Also, it’s an investment corporation platform for Taiwan and Singapore.
As you know, the Singapore is very good at build a new tongue in different countries. Like in India, like in the Southeast Asia, Vietnam and Myanmar.
Taiwan should walk with them in this field. We can cooperate with them to ‑‑ I should not say hitchhiking it ‑‑ but to go with them to develop the market with them. To cooperate with them, so it’s a platform for the investment. Also the opportunity for the business platform.
That means we can use all these hubs, information hub and parent hub to get what we need, and from here we can go with them to the India market, to the Asia market.
Then lastly, Singapore is not so many manufacturing. Their university graduate student, they can go to Taiwan to get some experience because Taiwan is very good at manufacturing. Those people we can recruit them in Taiwan or in the future, we can use them as our people to develop market in Asia.
Eric: All right. Both Taiwan and Singapore, we were known as two of the four Asian tigers. Currently, Singapore enjoys much higher earnings in GDP per capita than Taiwan does. Are there any aspects of business culture or mindset there that Taiwan can learn from as it tries to increase its own efficiency?
James: Indeed, yes. You see that the mindset between Singapore and Taiwan businesses a bit different. For example, we say this government office. In Singapore, government office they enjoy a very good pay. High pay. Of course, they are very well trained. Then they have a very good efficiency.
In the private sectors, if you want to hire a good talent from the market, you have to compete with the government sector. That’s why the condition of this employee will be going up. At the same time, the efficiency also going up.
The government sector and also the private sector, they offer a lot of the scholarship to those students. They encourage student to go to the overseas to get the most update information. And then come back to the country to contribute what they learned from the overseas.
This kind of so‑called competition between the talent competition, between the private sector and also the government sector. This one also is increased the standard of the talent demand in the market. Also, they increase the efficiency to boost the whole countries.
Eric: Mr. Chen, you are the head of the Taipei Business Association in Singapore. As that position, do you have any advice for businesses that are looking to expand abroad thanks to the encouragement coming from the New Southbound Policy?
James: For this point, as you know because there is no any diplomatic relations between the Taiwan and Singapore, many things we can do but cannot say. In this field, government can improve their penetration to the business.
You see, up to now, all kind of efforts are done by the businessmen themselves. Government can only stand behind support. Now, government can stay ahead to lead the industry. To discuss with the Singapore government how to tie together. Then, rom here, we can go to other place like India, like Asian countries.
You see what I mean? This one can further enlarge our penetration rate or the development in these countries, in this area.
Eric: We’ve been speaking to Mr. James Chen, the leader of the Taipei Business Association in Singapore. Mr. Chen, thank you once again for taking the time to speak with us today.
James: No problem. Thank you. Thank you very much.
Eric: That’s it for today’s installment of Looking South here on ICRT. I’m Eric Gau. We’ll see you all again next week.