In the World Bank's Doing Business 2007 report released in September 2006, Singapore clinched top honours amongst 175 economies for its ease of doing business. The fact that Singapore is recognised as the most business-friendly economy in the world is also fuelled by an impressive number of diverse companies that have chosen the Republic as a springboard for their operations. Year after year, the numbers continue to grow - today, some 7,000 MNCs and 100,000 SMEs conduct a variety of businesses in Singapore. Of these companies, over 4,000 companies of varied geographies, industries and sizes have established HQ functions in Singapore.

Without doubt, Singapore is one of the most attractive HQ locations in the world, and the Singapore Economic Development Board (EDB) wants to raise this standard further. By 2010, the agency hopes to attract 500 heavyweight companies to establish HQ operations here, and judging from the figures so far, the target is very achievable. Just last year, under its HQ Programme, EDB awarded HQ status to 32 companies, bringing the total number of recipients to 415 since the initiative began in 1986.

Regardless of the size, industry or native country, EDB duly supports all kinds of companies who have demonstrated strong commitment in their level of operations in Singapore. This requisite has worked well in Singapore's favour, helping to build a unique HQ ecosystem that boasts formidable depth and diversity.

Made to order

EDB's most recent international HQ Award ceremony, held during last year's Global Entrepolis @ Singapore event, saw 13 companies receiving IHQ Award. And, consistent with the multifaceted character of the local HQ landscape, they hail from a variety of industries, including manufacturing, logistics management, IT and engineering services.

"To meet the different needs of companies which are from different industries and in different stages of growth, EDB is customfitting our services to them," says Lim Siong Guan, chairman, Singapore Economic Development Board (EDB). "As a result, we are seeing increasingly sophisticated and substantial activities located in Singapore, together with the traditional headquarters activities. Some of these activities include R&D, intellectual property management and supply-chain management. Many of the companies here today have also chosen to consolidate their corporate functions for the region in Singapore."

Indeed, it is this "custom-fitting" that has helped diversify the breadth and scope of companies with HQ activities in the city state. However, for many years, Singapore has also been home to a substantial pool of companies with HQ functions. Local company Cerebos, which markets and produces over 50 food and health supplements such as Brand's Essence of Chicken, has used Singapore as its vital nerve centre since its inception in 1968 and was the first company to be awarded HQ status by EDB.

Other companies that hail from abroad and count the Republic as a long-time operational base include GlaxoSmithKline, ExxonMobil, Hitachi, IBM, Motorola, General Electric, Procter & Gamble, Hewlett Packard, Caterpillar and Wacker Siltronic. Though they hail from all over the world, they have played a pivotal role in raising Singapore's profile as a dependable and world-class HQ destination.

HQ opportunities in newer markets

As Singapore's repute grows, so too the nature of companies that are setting up base here. Further, the country's emphasis on technology and knowledge places it in good stead - higher
value-add manufacturing activities and more sophisticated services are flourishing on the island.


Recent recipients of the IHQ Award in the new millennium hail from less common, but emerging industries - and it is a trend that continues unabated. Major food & beverage players like Burger King, Yum! Brands Inc (which manages Kentucky Fried Chicken, Pizza Hut, Taco Bell and Long John Silver's), Delifrance, Diageo (which has global brands like Guinness, Smirnoff and Baileys under its portfolio), Kraft and Cadbury Schweppes have chosen Singapore as their HQ gateway for spearheading regional activities.


Leading audio & video brands like Bang & Olufsen and Nakamichi lend mettle to the lifestyle market in their decision to hub in Singapore, while upmarket retailers the likes of LVMH, Hermés and Levi's are HQ pioneers in the retail sector. Less traditional industries seeing an upswing in HQ-based operations include hospitality, the latest being Marriott Vacation Club International, Club Med, InterContinental Hotels and Les Concierges as well as automotive players such as Nissan, Volkswagen and DaimerChrysler.

Higher level professional services have also found their way here, amongst them Mercer, a leader in human resource consulting and market research organisation, Gallup. International and non-profit organisations like World Intellectual Property Organization, World Wildlife Fund and World Vision have similarly set up HQs in Singapore.

From far and wide

Naturally, Singapore-formed companies are only too pleased to plant their HQ base here. After all, they would have ready and easy access to the rest of the world, solid infrastructure, talented workforce, excellent business linkages, business-friendly tax system, a global network of free trade agreements and an overall high quality of life. Most importantly, they have the 'Made In Singapore' stamp of quality that is recognised both at home and abroad. Enterprises like Hyflux, OSIM, Breadtalk, Creative Technology and Aztech Systems Limited have effectively grown their businesses from Singapore, and continue to spearhead their global businesses from Singapore.

In the same vein, the success of Singapore's very own helps attract players from new geographies and markets. Consultant engineering company Beca was the first New Zealand organisation to be awarded IHQ Award in 2005 and New Zealand Milk Products soon followed. In October 2006, WorsleyParsons joined the ranks of other Australian companies such as BHP Billiton, Amcor and United Group to conduct regional, if not international, HQ activities in Singapore. From the Middle East came Israel's ECI Telecom and Kuwait's Trans-Link Express. Northern Asia players also began flocking to Singapore: Korea's Samsung, Korean Airlines, Hyundai Engineering & Construction, as well as China-based Lenovo, Huawei Technologies, China Unionpay and Suntar Membranes. India has also seen enterprising companies such as Tata Consultancy and Satyam Computer Services start their HQ operations here.

Newer geographies and markets aside, there is a rising trend amongst the over 4,000 companies that have HQ responsibilities in Singapore - they are embarking on a full value chain of activities to synergise their business into a fully integrated one. Whether it is manufacturing, supply chain management, R&D, innovation and product development to shared services and intellectual property management, organisations like Motorola, Ikea and Citibank, to name a few, have been quick to identify and tap on Singapore's unique advantages to further scale up their local operations.

To this, Lim is quick to assure that all companies will receive "special treatment, new business possibilities, progressive business environment, congenial networks and partnerships."

"The headquarters landscape is characterised by diversity, diversity in terms of geographies, industries and functions," affirms Lim. "I thank all companies for their confidence in, and endorsement of, Singapore as a choice location for their HQ."