Tap Growing Asian Marts By Locating OPS In Region, Firms Told

By Tengku Noor Shamsiah Tengku Abdullah SINGAPORE, Feb 29 (Bernama) -- As Asian markets grow in size and sophistication, companies will need to seriously consider locating the full spectrum of their business value chain within the region. Singaporean Minister in the Prime Minister's Office & Second Minister for Home Affairs, S. Iswaran, said this has important implications for businesses which sought to capitalise on emerging Asian opportunities. "Proximity to market means going beyond manufacturing, to incorporate functions such as research and development, design, supply-chain management, branding and marketing, within Asia. "The ability to understand and appreciate Asian sensibilities, anticipate emerging trends among Asian consumers, and respond with customised products and services, will differentiate successful companies," he said in his address at the Young Presidents’ Organisation Global Leadership summit 2012 here Wednesday. Iswaran, who is also Second Minister for Trade & Industry, said this integrated approach would yield long-term competitive advantages for businesses within the Asian context. He said Asia’s economic resurgence has its origins in the post-World War II period. Leveraging on its post-war alliance with the US and the resulting preferential access to Western markets, Japan consolidated its pre-war industrial capabilities and rapidly scaled the value chain, he said. Iswaran said the four "Asian Tigers" -- South Korea, Taiwan, Hong Kong and Singapore -- followed Japan’s trail by attracting foreign direct investments, hosting labour-intensive activities "off-shored" from the Group of Three, and sold their products to the West. "In their wake, other developing Asian countries -– such as Thailand, Malaysia, Indonesia, China and Vietnam –- also adopted an export-driven growth model and grew rapidly as a result. "Today’s rise of China, India and other economies in the region are an extension of that model," he said. Against this backdrop, the minister said, some had wondered whether Asia’s rise would be sustainable. After all, he said, the Asian growth story has so far been substantially premised on Asia’s attractiveness as a low-cost manufacturing centre for global markets and, in particular, developed economies. -- BERNAMA