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GM moves international HQ to Singapore from Shanghai
By Korea HeraldPublished : Nov. 14, 2013 - 20:34
SINGAPORE (AFP) ― U.S. auto giant General Motors said Wednesday it would move the headquarters of its international operations to Singapore from Shanghai, boosting the city-state’s status as a regional business hub.
Detroit-based GM said in a statement that the relocation of its consolidated international operations would take place in the second quarter of next year.
The new headquarters “will oversee key parts” of GM’s business in Africa, Southeast Asia, Australia and New Zealand, India, South Korea and the Middle East as well as Chevrolet and Cadillac in Europe, the statement added.
There will be 120 employees in Singapore. GM will keep 250 employees in Shanghai and 245 in Seoul.
GM said the move would allow it to focus on China, the world’s biggest vehicle market, while strengthening its presence in other countries in the region.
The Singapore headquarters will “lead the company’s umbrella strategy for the region,” GM said.
It said Singapore offers several advantages, including “greater proximity” to key international markets like Southeast Asia and India, the Middle East and Africa.
“We are heartened that GM has chosen to set up its international headquarters,” said Lim Kok Kiang, an assistant managing director at Singapore’s Economic Development Board.
Kelly Teoh, market strategist at IG Markets in Singapore, said the move signaled a growing perception that the city-state was “trumping” Shanghai and Hong Kong as the preferred location for regional offices.
“Singapore is now being seen not only as a purely Southeast Asian hub, but also an Asian hub with wide networks,” Teoh told AFP.
Singapore’s clear regulatory framework and low corporate and personal income taxes also made it favorable for multinational corporations, she said.
The decision “reflects Singapore’s strong competitive advantage as the Asia-Pacific’s leading headquartering hub for management functions,” said Rajiv Biswas, regional chief economist at global consultancy IHS.
“However GM will remain strongly committed to its production operations in China, which has become the world’s largest auto market since 2010,” he said.
Detroit-based GM said in a statement that the relocation of its consolidated international operations would take place in the second quarter of next year.
The new headquarters “will oversee key parts” of GM’s business in Africa, Southeast Asia, Australia and New Zealand, India, South Korea and the Middle East as well as Chevrolet and Cadillac in Europe, the statement added.
There will be 120 employees in Singapore. GM will keep 250 employees in Shanghai and 245 in Seoul.
GM said the move would allow it to focus on China, the world’s biggest vehicle market, while strengthening its presence in other countries in the region.
The Singapore headquarters will “lead the company’s umbrella strategy for the region,” GM said.
It said Singapore offers several advantages, including “greater proximity” to key international markets like Southeast Asia and India, the Middle East and Africa.
“We are heartened that GM has chosen to set up its international headquarters,” said Lim Kok Kiang, an assistant managing director at Singapore’s Economic Development Board.
Kelly Teoh, market strategist at IG Markets in Singapore, said the move signaled a growing perception that the city-state was “trumping” Shanghai and Hong Kong as the preferred location for regional offices.
“Singapore is now being seen not only as a purely Southeast Asian hub, but also an Asian hub with wide networks,” Teoh told AFP.
Singapore’s clear regulatory framework and low corporate and personal income taxes also made it favorable for multinational corporations, she said.
The decision “reflects Singapore’s strong competitive advantage as the Asia-Pacific’s leading headquartering hub for management functions,” said Rajiv Biswas, regional chief economist at global consultancy IHS.
“However GM will remain strongly committed to its production operations in China, which has become the world’s largest auto market since 2010,” he said.
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Articles by Korea Herald
