More Japanese Companies Seen To Invest In Singapore Following Telco’s Establishment Of Singapore Headquarters
Major Japanese telecommunications company DoCoMo has revealed plans of expansion in Singapore with a new subsidiary that will better cater to its Japanese community in the country. According to the company’s press release, DoCoMo announced that it will be opening a subsidiary in Singapore which will begin operations on January 1, 2013, under StarHub.
DoCoMo’s goal is to provide Japanese language-services for Japanese expats who wish to buy mobile phones, internet and television plans from Star Hub. DoCoMo will also be providing customer or technical support for billing and registration issues.
DoCoMo’s subsidiary is set to replace its former representative office. Incorporated in 2005, the representative office will cease operations upon the beginning of the subsidiary’s operations.
The transition from having a representative office to establishing a subsidiary office only makes sense for DoCoMo as the Japanese community in Singapore is among the largest in the region. The Embassy of Japan in Singapore estimates that over 24,000 Japanese expats are in Singapore. 1,000 companies, meanwhile, are incorporated in the city-state.
DoCoMo’s move is seen as a sign that major Japanese companies have seen the benefits of setting up a regional headquarter in Singapore. Just recently, Panasonic, Konica Minolta, Mitsui Chemicals and Hoya Surgical Optics have relocated VIP leaders in Singapore.
DoCoMo’s move also highlights the growing number of Japanese companies in Singapore’s business district. Currently, there are over 40 Japanese housed in Crosscoop, an 8,000 square foot area at Singapore’s Raffles Place.
Setting up a subsidiary in Singapore is the best option for foreign companies that would want to maximize their profits and market reach. Foreigners are allowed to maintain full ownership of subsidiaries, which are also considered as a separate legal entity from them. Subsidiaries are also considered as a local resident company that allows it to take advantage of Singapore’s tax incentives and exemptions.