Word of caution: don't export Singapore model wholesale

Business Times 13 Aug 09;

Urbanisation must be modified to suit local conditions: Sembcorp

IN exporting urban solutions, Singapore companies must not make the mistake of transplanting wholesale the Singapore model.

That word of caution comes indirectly from Low Sin Leng, executive chairman of Sembcorp Industrial Parks. What she says of her company's experience in Vietnam applies to other Singapore companies in other markets.

'There are many degrees of urbanisation,' she says. 'We must be realistic and not simply replicate Singapore's version of urbanisation in Vietnam. Urbanisation must be modified to suit local market readiness.'

Ms Low knows what she's talking about. Sembcorp Industrial Parks has been building industrial parks in Vietnam since 1994, pumping US$660 million into four huge projects totalling 4,845 hectares.

And the industrial parks - including the later ones which incorporate integrated industrial townships with high-rise apartments and villas and eco gardens - have all been pretty successful.

'These projects flourished by offering reliable utilities infrastructure and world-class manufacturing environment to an influx of foreign manufacturers keen to have access to cost-effective manufacturing sites from which to export electronics goods,' Ms Low says.

Built with local partners, Sembcorp's industrial parks in Vietnam have been 'vital' in helping the country transform 'rural land to self-sufficient industrial estates hosting global manufacturers, thereby generating positive national economic spinoffs in terms of provincial economic development and job creation'.

The new integrated townships aim to 'produce sustainable developments by way of good urban planning and improved utilities facilities with sound environmental systems'.

Ms Low says that there is no lack of business opportunities for Sembcorp, because many cities have ambitions to go urban - and International Enterprise Singapore has lots of recommendations.

'But as a commercial outfit, we have to be mindful in project selection,' she says. 'Location and timing are important considerations as well.'

There are growth opportunities in emerging markets, such as Vietnam, Cambodia, China and India.

'They like to leverage on Singapore's experience to expedite their own development,' Ms Low says. 'All know what they want, but how and who to implement it is what matters.'

She says that Singapore is looked to because 'we are good systems integrators and project implementers'.

'There is a certain level of expectation for Singapore-managed organisations,' Ms Low says. 'They are comfortable with Singapore's values and integrity, transparency and efficiency. It is a question of taking a project beyond the masterplan. That is where our success is.'

Little red dot with much to offer in urban planning
Chuang Peck Ming, Business Times 13 Aug 09;

WHAT do Singapore companies, coming from a tiny island, have to offer in urban solutions to big towns and cities elsewhere?

Plenty, says Jeffrey Ho of Surbana International Consultants, an offshoot of the Housing and Development Board.

'Singapore is one of five cities with the (world's) greatest population density,' the executive vice-president of Surbana's urban planning group points out.

'This gives us a special understanding of the issues of high-density living in cities,' he says. 'It qualifies us as an expert on compact urban development solutions.'

Mr Ho and his colleagues in Surbana's planning group 'have fundamentals that guide all our actions and thoughts'.

'These came from our Singapore experience, our heritage of nation building - internalised in our planning and design philosophy and acquired from our work at HDB and our participation in the Singapore Concept Plan.'

Mr Ho says that Surbana is therefore well-placed to tailor and apply the principles of Singapore's success in nation building to overseas markets.

'The iconic value of 'our little red dot' is most appreciated and sought after by overseas clients,' he says.

Coming from Singapore, which is recognised for good governance and long-term integrated planning, Mr Ho says that Surbana is seen as a professional urban planner that can provide 'tested, grounded, implementable solutions'.

'Because of Surbana's urban planning group's multi-culturism, we can address issues from a multi-faceted perspective,' he says. 'Over many years, we have completed many first-move projects that became global case studies. We are reputed to be capable of transforming all urban challenges into a liveable future.'

According to Mr Ho, a bright future as a global player awaits Singapore's providers of urban solutions.

In the short term, he sees urban solutions in demand to reduce and manage greenhouse gas emissions, promote greater accessibility, develop a wider range of transport options, conserve natural resources by using land more wisely and manage water resources.

In the mid to longer term, growth is not the issue, Mr Ho says. 'It's not about whether growth will occur, but how and where.'

Master-planning will be a key element in urban development, according to him. 'You must have a master plan to guide growth. The challenge is not to sprawl, but to continue to grow and create better suburbs and stronger cities - to focus on rebuilding the old before building new.'

Mr Ho says that the trend will move towards more compact development that relies on existing infrastructure.

So policies must encourage 'reconstruction, redevelopment, reinvestment and re-invention'.

Urbanisation opportunities beckon
Business Times 13 Aug 09;

Singapore companies with proven expertise in planning, building and managing cities have excellent prospects, reports CHUANG PECK MING

THE global march towards urbanisation is unstoppable - not even the deepest recession in 30 years is slowing it. And that should, at least, bring some sunshine to Singapore companies in these gloomy days.

'Urbanisation is a global mega trend,' points out Tham Poh Cheong, director of infrastructure, environmental & engineering services at International Enterprise (IE) Singapore.

Citing projections by the United Nations, he notes that half the world's population are already living in urban settings; by 2050, the number will jump to 70 per cent.

'By then, more than 20 megacities each with a population of at least 10 million will emerge,' Mr Tham says.

Many of these will be in China, the Middle East and South-east Asia.

'In China, the economic ripples created by the success of gateway cities such as Shanghai, Beijing and Guangzhou have spurred the growth of a new generation of Chinese cities such as Nanjing, Xian, Chengdu and Chongqing, which aspire to economic prosperity as well as a high quality of life for its residents,' Mr Tham says.

Environment-friendly

And, with the rising awareness of green issues, many of the cities also want to be environment-friendly.

In the Middle East, countries such as Saudi Arabia, Qatar, Oman and the United Arab Emirates are launching mega commercial and industrial projects in an attempt to reduce their reliance on oil and gas, and to diversify their economies.

Abu Dhabi has big plans to build a world-class city with massive investments in infrastructure, real estate development and cultural facilities. Likewise, Saudi Arabia is pumping billions of dollars into a series of mega economic cities to provide jobs and homes for its people.

Closer to home, escalating economic growth and urbanisation have led to demand for townships and industrial parks in countries such as Indonesia and Vietnam.

What have all these developments got to do with Singapore?

'They create enormous business opportunities for companies that are able to provide sustainable urban solutions in these cities,' Mr Tham says.

And that means Singapore companies with proven expertise in planning, building and managing cities.

'Singapore is a good model for sustainable solutions, and Singapore companies have gained the expertise from Singapore's history of physical transformation,' Mr Tham says.

Thus, the Asian Development Bank (ADB) and, more recently, the World Bank have teamed up with Singapore to tap its experience in urban management and to share it with developing countries.

Not every Singapore company is in the business of providing urban solutions; in fact, many of the specialists in urbanisation work for the government. But the public sector also ropes in companies from the private sector to execute plans.

Partnerships

That is why Mr Tham says that 'Singapore companies have accumulated deep knowledge and rich experience in urban solutions'.

Indeed, Singapore now has a group of companies that can offer the whole value chain in urban solutions that few others can boast of.

Which is perhaps why IE Singapore, in pushing Singapore companies to go global, prefers that those in urban planning, building, civil engineering and management of industrial parks band together in venturing out.

'IE Singapore has actively encouraged a Singapore Inc approach to foster partnerships to secure key projects overseas,' Mr Tham says. 'Singapore companies can then combine resources and expertise to provide an attractive, complete value proposition in urban solutions. This will sharpen the competitive edge of our companies, thus maximising the chances of success.'

Better still, they should team up with government agencies such as PUB and URA, which have started their own international and consultancy arms.

'Working hand in hand with Singapore companies in the internationalisation thrust, their participation would facilitate and increase the chances of the companies in identifying and securing projects overseas,' Mr Tham says.

Singapore companies have built up a good track record in developing industrial and science-and-technology parks abroad. They are also prominent in township projects that incorporate residential, commercial, recreational and educational developments.

Keep venturing out

Cost-effectiveness, quality and sustainability are the hallmarks of Singapore's urban solutions companies, according to Mr Tham.

But Singapore companies should never rest on their laurels; instead, they must continue to strive to win more projects in the global markets.

Thus, IE Singapore has not stopped encouraging Singapore companies to venture out.