fsa research project 2013 singapore & malaysia

FINANCIËLESTUDIEVERENIGINGAmsterdam

FSA RESEARch PRojEct 2013SingAPoRE And MAlAySiA

about fsa

the fsa Research Project is one of the projects organized by the Financial Study association Amsterdam (FSA), which is the largest financial study association in the Netherlands. It is administered by students from the University of Amsterdam and the VU University Amsterdam.

The objective of the FSA is to bridge the gap between the theory as taught at the university and the practice of the business field. We do this by organizing several national and international projects during the year. In this way, students participating in projects have the opportunity to meet their future employer and develop personal and professional skills while participating companies get the possibility to meet top students in the final stage of their study.

The projects of the FSA refer to the subjects Banking, Investments, Consultancy and Accountancy. These subjects are covered in the following well-known projects: London Banking Tour, International Banking Cycle, Beroependagen, FSA Congres, Consultition, Traders Trophy and the international FSA Research Project. We also publish the FSA Magazine which contains academic articles and interviews with people working in the financial industries.

All activities of the FSA are organized by students from both universities of Amsterdam with an interest in finance. The FSA cooperates with many companies and also with other financial study associations in Groningen, Maastricht, Rotterdam and Tilburg within the Financial Association Netherlands (FAN).

Innovation, ambition and enthusiasm are the elements people of the FSA share. This is also reflected in our slogan: ‘The urge to improve is what makes the difference’. It has made us what we are today and stimulates us to find new and better ways to bring students and employers closer together. The FSA is always looking for talented members and there are enough opportunities to join us.

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IntroductIon 4

Foreword 5

AdvIsory BoArd 6

commIttee oF recommendAtIon 8

testImonIAls 9

whAt we oFFer 10

clIent BeneFIts 12 reseArch experIence 13 ABout sIngApore 14

ABout mAlAysIA 16

Malaysia - a soft landing to asia 18

doIng BusIness In sIngApore 19

commIttee And pArtIcIpAnts 20

CoNTeNT

Financial Study association Amsterdam (FSA)Roetersstraat 11Room e2.111018 WB AmsterdamThe NetherlandsT: +31 (0)20 525 65 12e: [email protected]: www.fsaresearchproject.nl

FSA Research Project Committee 2013

Anneloes van Golstein Brouwers (Coordinator)Jan-Willem Haan (Head of Acquisition)Suzan Hofstee (Secretary)Kjell Mulder (Coordinator)Lotte Nijenhuis (Chairman)Rik Plender (Treasurer)

CoLoPHoN

FSA Research Project | 3

This brochure was compiled to promote the FSA Research Project Singapore and Malaysia project of the Financial Study association Amsterdam. For more information, please visit www.fsa.nl or www.fsaresearchproject.nl

All rights reserved.

INTRodUCTIoN

The FSA Research Project is proud to present its destination for 2013: Singapore and Malaysia. In July and August, a team of seventeen highly talented and motivated students will conduct international research for companies with aspirations towards these two promising markets. extensive training and supervision by knowledgeable experts in the preparatory phase will have the team fully prepared for departure.

Singapore and Malaysia are economies that are rapidly growing and will continue to do so in the coming years, especially in comparison with european countries. Both countries are rated extremely high in the World Bank’s ease of doing Business Index, with Singapore on the first place. This shows that Singapore is one of the most open and developed economies in the world and a hub for doing business in (Southeast) Asia. Malaysia is an emerging economy with a good infrastructure and fast growing domestic consumption. The interesting combination of these two unique countries offers a wide range of opportunities for dutch companies. The most promising sectors in these countries are, amongst others: financial services, chemicals, natural resources and infrastructure.

The FSA Research project is an excellent opportunity to provide answers to your business questions. We deliver tailor made professional consultancy services and research reports for companies with international aspirations. As the FSA operates on a non-profit basis, company specific research can be conducted at a competitive price. The quality is guaranteed by years of experience, the careful selection of the researchers, seminars from knowledgeable experts, and guidance by the best professors the city of Amsterdam has to offer.

This brochure is intended to inform you about the structure of the FSA Research Project and how we can add value to your business. If you have any further questions, please do not hesitate to contact us. We are more than happy to meet you and to provide additional information.

Kind regards,

Committee FSA Research Project 2013 Singapore and Malaysia


By Lilianne Ploumen Minister for Foreign Trade and Development Cooperation

In 2008 Kishore Mahbubani rang in ‘the Asian century’ with his book The New Asian Hemisphere. The high hopes of businesses, entrepreneurs and investors around the world for the continent’s thriving economy have since become widespread.

Already keyed in to the continent’s power, many dutch companies were not surprised by Mahbubani’s book. As early as the 16th century, dutch merchants set ashore on the Malay Peninsula, and the 19th century saw the arrival there of the first international bank − one with dutch roots. Since the early 20th century, dutch companies like Shell and Heineken have set up operations in Singapore and Malaysia.

The dutch economist Albert Winsemius made perhaps the most remarkable contribution to the region’s economy during more than twenty years as economic adviser to Singapore. In 1961 he drew up a plan for economic expansion and later became one of the first people to see Singapore’s potential as a financial centre and logistics hub. For twenty years he helped transform Singapore into an Asian tiger.

Today, Singapore and Malaysia still offer a wealth of opportunities for dutch companies. Singapore ranks as the best country to do business with, hence its reputation as ‘Asia for beginners’. And there is the added bonus of it being the gateway to the entire continent.

For the more adventurous entrepreneur, Malaysia offers plenty of promise. The country is working hard on becoming a high-income nation by 2020. It is also keen to promote innovation and sustainability, an area in which the Netherlands can help. With its economy growing by around 5%, Malaysia has much to offer. And new arrivals will be in good company – around 150 dutch businesses have an office in Malaysia and over 300 in Singapore. And even more dutch companies invest in these countries.

I am keen to see these numbers swell further, which is why I invited dutch companies to join me during the dutch State visit to Singapore and Brunei in January 2013. over the next

four years I want to make sure that dutch companies are able to make the most of opportunities outside europe. We are still concentrating our investments in europe, yet growth here is stagnating. So I want to make it easier for companies to explore new markets, by breaking down trade barriers and helping them on their way using the knowledge and connections diplomats have to offer.

Students of the Financial Study Association Amsterdam (FSA) also guide businesses in tapping into new markets, their tailor-made studies helping companies identify and seize on new opportunities. In recent years, the FSA has used its expertise, trend awareness and natural curiosity to select countries for its studies. Students have paid visits to the BRICS countries, rounding off with India. Now they are conducting research in Singapore and Malaysia, following in the footsteps of all those dutch entrepreneurs who have searched for new opportunities in Asia over the centuries. I invite you to follow suit.


FoReWoRd

AdVISoRy BoARd

prof. dr. A. lucas FinanceAndré Lucas is an expert in Financial Risk Management, Asset Pricing, and Financial econometrics. His research focuses on empirical modelling issues for market and credit risk, in particular at the portfolio level. He has published on this topic in journals such as Journal of econometrics, Journal of Business and economic

Statistics, Applied Mathematical Finance, and Journal of Banking and Finance.

prof. dr. A.w.A. Boot Financearnoud boot is Professor of Corporate finance and Financial Markets at the University of Amsterdam and director of the Amsterdam Center for Law & economics (ACLe). He is a member of the dutch Social economic Council (SeR) and the Bank Council of the dutch Central Bank (dNB). He is also advisor to the Riksbank (Central Bank of

Sweden), Research Fellow at the Centre for economic Policy Research (CePR) in London and at the davidson Institute of the University of Michigan. Prior to his current positions, he was on the faculty of the J.L. Kellogg Graduate School of Management at Northwestern University in Chicago, and during 2000-2001 he was a partner in the Finance and Strategy Practice at McKinsey & Company. In addition to his academic activities, professor Boot advises extensively on ownership structure issues, particularly related to the public/private domain. He is frequently involved in legal cases (expert opinions), and is consultant to several financial institutions and corporations. His consultancy activities concern the regulation and strategic positioning of financial institutions, corporate finance, governance and anti-trust issues. For these activities, he has also established the Amsterdam Center for Corporate Finance, a ”think tank” designed to improve the interaction between theory and practice

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prof. dr. s.J.g. van wijnbergenEconomicsSweder van Wijnbergen is professor of economics at the Faculty of economics and Business at the University of Amsterdam. In 1997 Hans Wijers brought him in to the Ministry of economic Affairs, where he worked as secretary until 1999.Van Wijnbergen

studied physics at Utrecht University and econometrics at the erasmus University. He obtained his doctorate on economics at MIT in the US. Between 1980 and 1992 van Wijnbergen was attached to the World Bank, in the second half of this period as head economist. His research area is focused on international economics, finance, balance of payments- and financial crises.

prof. dr. Ir. h. rijkenCorporate FinanceHerbert Rijken is attached to the VU University as professor of corporate finance at the Faculty of economic Sciences and Business Administration. He studied Applied Physics at the TU delft and Business Administration at the University Nyenrode. He has obtained

his doctorate at the faculty applied Physics of the tu eindhoven. education- and research activities are mainly focused on corporate finance, in particular credit risk and corporate governance.

prof. dr. t.l.c.m. groot Management AccountingTom Groot is professor Management Accounting at the Faculty economic Sciences and Business Administration at the VU University. He is also head of the department Accounting and director of the research institute Amsterdam Research Center in Accounting

(ARCA) and honorary member of the Association of Financial Controllers. He regularly publishes in national and international magazines about the performance measurement and -judgment, management control and financial management in commercial firms as well as non-profit

drs. l.A. van eerdenFinancial Business AdministrationLeo van eerden is attached to the VU University as a professor at the finance department of the Faculty of economic Sciences and Business Administration. He studied International economics at the University of Tilburg and at the moment he is working on his Phd at the

VU University. His current research area is mainly focused on financial crises, regulation, supervision on banks and system risk management.

CoMMITTee oF ReCoMMeNdATIoNprof. dr. d.c. van den BoomRector magnificus Universiteit van Amsterdam

prof. dr. l.m. BouterRector magnificus Vrije Universiteit Amsterdam

Mr. d.R. Hooft graaflandMember Executive Board / CFO Heineken

mr. B. pullesDirector NL EVD Internationaal

mr. e. e. van der laanMayor of Amsterdam

dr. A.h.g. rinnooy KanEx-chairman Social Economic Counsil (SER) and professor at the University of Amsterdam

prof. dr. c.n. teulingsDirector Centraal Plan Bureau

drs. F.w. weisglasEx-chairman of “de Tweede Kamer der Staten-Generaal”

mr. g.t. vinigAssociate professor for Entrepreneurship at the University of Amsterdam



CoMMITTee oF ReCoMMeNdATIoN

cryo-save group n.v. (south Africa, 2011 and India, 2012)

By Arnoud van TulderChief Executive OfficerCryo-Save Group N.V.E: [email protected]

Cryo-Save Group N.V., europe’s leading family stem cell bank, and listed on NySe euronext, participated in the FSA project in 2011 and 2012. I was directly involved in the decision to participate and the selection of the students. In 2011 two students went to South Africa where we, at that time, just started a joint venture with a local stem cell bank. In 2012 two students went to India where we are in business since 2008, but with a performance behind expectations. The South African project focused more on external factors impacting our performance (awareness, reaching potential customers, marketing activities), the Indian project put more emphasis on internal elements like recruitment, training and communication. In both countries the students interviewed customers and doctors.

The main reasons for me to participate in this project was to give students the opportunity to experience how it is to work abroad in non-western countries, at the same time expecting a useful contribution how to improve our performance from intelligent, ambitious youngsters with a fresh, open minded view. Also the fact that the students have to invest financially in this project themselves was an important condition for me to say yes to this project.

I was very satisfied with the outcome of these projects. The students prepared themselves very well in the Netherlands (the desk research phase), and showed that they were mature and professional enough to do their field work locally, not always under easy circumstances in India and South Africa as you will understand. Also confidentiality was fully understood by them. I managed these projects from my office in the Netherlands, but they frequently informed me on progress. They presented their findings to local management and me verbally and in writing.

This FSA project is set up in such a professional way, run by very motivated and capable students, I really recommend everybody to give these students the chance to do research for any other company.

schouten europe B.v. (India, 2012)

By Hans SchoutenChief Executive OfficerSchouten Europe B.V.

The research conducted elaborated on market potential for ready-to-eat soy based meals in the Indian retail- and quick service restaurant sectors. The vast majority of the Indian population consists of strict vegetarians. Bearing this in mind the students discovered opportunities and bottlenecks for our my products. Moreover they paved a way for a entrance strategy by gaining fruitful contacts in the top-segment of these sectors. I am pleased with the result that the FSA students have achieved. Their end conclusions and advice were very helpful, they lowered the entrance barrier for me and helped me to start first negotiations with Indian partners.

TeSTIMoNIALS

WHAT We oFFeR

We conduct high quality, company-specific research in emerging markets on a non-profit base for companies with international aspirations.

whAt? The main objective of the project is to conduct research in Singapore and Malaysia, which can be fully customized to the wishes of the company. of course, the research can be conducted in several areas. examples of research that has been conducted previously are:• Market analysis • Competitor analysis • Industry entrance analyses• Sector analysis • Growth strategy analyses• Feasibility analysis• Identification of possible business partners• Background research and competitive market analyses• distribution and logistics research • Finance or investment opportunities • outsourcing and off shoring • Import and export analysis • Market expanding opportunities

how? Before going abroad, thorough desk research will be carried out and maximum preparation will be ensured. Researchers are offered intensive training about conducting research, Singapore and Malaysia and relations with clients. The acquisition period starts in January and as soon the client has given the final assignment desk research will start. during the entire process we will be supported by our advisory board. They can be contacted by the committee in case of questions and will act as our consultants.

The field research will take place in Singapore and Malaysia and will last for five weeks. once the participants have returned to the Netherlands, the gathered data will be processed and the final report will be written. The company will constantly be kept well-informed and updated about the project’s progress. The research results will be presented to the contracted company and, upon request, the report will be published.



student selectIon each year around 80 students apply for the FSA Research Project. These students are active in the field of Finance, Accountancy, Management Accounting (Controlling), International Financial economics, Marketing, Fiscal economics and other related disciplines such as Law and Social Science. We have selected eleven of the most promising students based on the following criteria:• Final stage of study (150 eCTS prerequisite)• Highly motivated and ambitious• Internationally oriented • organizational experience• Good academic results• Team playing skills

Note: Participating companies are able to express their preference for participating students

desK reseArch desk research covers a period of approximately six months. The first half of this period will be used to learn about the local economy, politics, culture and language. The students acquire this knowledge through lectures given by guest speakers, i.e. people from business practices. during the second half of the desk research students will start the research for their individual business assignments.

FIeld reseArch during the Research Project, approximately five weeks of field research will be carried out in Singapore and Malaysia. The information needed for these assignments will be obtained by means of interviews and visits to companies and institutions. The way the field research is conducted can be adjusted according to the specific preferences of the participating companies.

reportIng After our visit to Singapore and Malaysia each participating student will analyze and process the information gathered during the previous phases of the Research Project. The individual contributions of the participating students to the general survey will then be compiled to a customized report covering the research question proposed by the client. The students will present their individual research reports to the participating companies.

CLIeNT BeNeFITS

For over 15 years, the FSA Research Project has conducted research in a variety of emerging markets. This has resulted in an extensive network and the accumulation of valuable knowledge concerning this field of research. This enables us to continue delivering the required work and to end up with satisfied clients of the FSA Research Project year after year. each individual research project will be customized to the needs of the participating organization with the objective to completely satisfy the client. This way, we can offer:

hIgh QuAlItyStudents conducting the research are selected based on both personal and professional performance. Primarily, these students are in the final stage of their study. Prior to departure, the students carry out extensive desk research and study the sector and industry specific characteristics of the particular research subject. Because of this, the time spent in Singapore and Malaysia can be fully dedicated to field research. The field research in Singapore and Malaysia will last five weeks. In order to guarantee quality of the research, it will be conducted under supervision of university professors of both the Vrije Universiteit Amsterdam and the Universiteit van Amsterdam.

conFIdentIAlItyIt is possible to manage discrete research. This means the company name and/or the results of the research will not be published or discussed publicly. Clients named in the subsequent section have given their explicit authorization.

competItIve prIce Since the FSA is a non-profit organization, we are able to offer specific research at a price of approximately 10 000 eUR (excluding VAT), based on research to be carried out by two students. The costs will rise accordingly in case the assignment requires more students.

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expenses are based on the participation of seventeen students for a stay of five weeks in Singapore and Malaysia.Travel and accommodation expenses include airline tickets, insurance costs and transportation in Singapore and Malaysia.The organizational expenses consist of correspondence, telephone bills and brochures.The academic supervision and the final report, which will be presented, are part of the research expenses.each participating student will contribute 650 eUR.


over the last fifteen years the Financial Study association Amsterdam has gained considerable experience in organizing foreign Research Projects. The destinations of the previous editions are displayed in the ‘FSA Research Project – world map’ at the end of this brochure. In each of these projects, research assignments have played an important role. As mentioned before, the research can be conducted in a variety of fields. examples of participating companies in the past are: • ABN AMRo • Royal Philips • ABP • P&o Nedloyd • Corus • Rabobank • de Nederlandsche Bank • Stork • dHL • TPG • Grontmij • TNo• ING Group • Unilever

This list shows a number of companies active in different industries. due to confidentiality issues, we can only mention a limited number of companies, which have given their explicit permission. Some examples of research assignments are provided below. Noteworthy is that only large companies are named here, numerous researches have been done for several small and medium enterprises.

Fmcg supply chain (south Africa, 2011)The goal of this research was to find out who the most important players were in the FMCG Supply Chain from producer through packager to retailers. The mission was to find out how technologically advanced each industry link was, where decision power and autonomy lies, how the market is evolving and which industry and consumer trends in South Africa are noticeable. Shortly put, the interviews, that took the researchers from Johannesburg through durban to wonderful Cape Town, were designed to help a dutch player gain foothold if they were to start conducting any type of operations in the country.

green technology (china, 2010)This research was to identify the opportunities in the Chinese market. The focus was on Shanghai, Beijing and the province of Shandong. The research consisted of two parts. on one hand, the aim was to find out possibilities for doing business in China (including the legal aspects). on the other hand, it was focused on sustainability and agriculture in particular. To highlight the reciprocal investment possibilities, also a blueprint was made of both these sectors in the dutch market.

synclair Packaging B.V. (argentina, 2009) the research included a market-scan of the flexible food packaging industry in Argentina, specifying the meat industry, and the identification of possible distributors. This was done in order to give recommendations about entering the Argentinean food packaging market.

strawberindo lestari (Indonesia, 2008) this research represents a study on the logistical process of PT Strawberindo Lestari’s export activities to Singapore and Malaysia. The goal of this project was to find a more cost efficient method of transportation, while preserving the quality of the products.

nec philips (south Africa, 2007) This particular research was about finding appropriate business partners for the joint-venture NeC Philips in Mozambique, Tanzania, and Kenya to distribute one of their products. In order to realize this they had to plan and arrange a large variety of business meetings with potential distributors in each of these countries. The outcome of this research assignment was an advisory report concerning which distributors were best suited for the job. NeC Philips actually used their advice to select one of the potential partners.

dutch trade Board (India, 2006) The research in India was performed for the dutch Trade Board (dTB), which is an agency related to the dutch ministry of foreign affairs. This research was focused on the trade relations between dutch and Indian SMe’s in the biotech, medical, automotive, ICT and agricultural sector. The final report is now used by the eVd in providing information about India to dutch companies.

dhl (Brazil, 2005) The scope of this research assignment was the Brazilian express-market and the interaction with the Benelux express-market in particular. Furthermore they explored the possibility of expanding their business.

rabobank (russia, 2004) the fsa conducted research within the agricultural business and provided Rabobank with a qualitative industry entrance analysis of the Russian agricultural market.

Ing group (India, 2003) The FSA provided ING Vysya Life Insurance with a quantitative analysis of their investment portfolio in India. A decreasing interest rate was the reason to assess whether, next to bonds, investments should be expanded to stocks. ING used the report to rebalance its investment portfolio.

dialight corporation (Mexico, 2002) dialight Corporation is an American lighting firm that produces and develops the Led Technology. Led (Light emitting diode) is a new technology based on semi-conductors. The FSA Research Project was asked to extensively research the Mexican led Traffic Light market. In the three largest cities of the country (Mexico City, Guadalajara and Monterrey) three students interviewed government officials, the competition repre-sentatives, as well as other related third parties.

ReSeARCH exPeRIeNCe

about SINGAPoReSingapore was founded as a British trading colony in 1819. It joined the Malaysian Federation in 1963 but separated two years later and became independent. Singapore subsequently became one of the world’s most prosperous countries with strong international trading links (its port is one of the world’s busiest in terms of tonnage handled) and with per capita GdP equal to that of the leading nations of Western europe.

economySingapore has a highly developed and successful free-market eco-nomy. It enjoys a remarkably open, innovative and corruption-free environment, stable prices, and a per capita GdP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GdP growth averaged 8.6% between 2004 and 2007. The economy contracted 1.0% in 2009 as a result of the global financial crisis, but re-bounded 14.8% in 2010 and 4.9% in 2011, on the strength of renewed exports. over the longer term, the government hopes to establish a new growth path that focuses on raising productivity, which has sunk to a compound annual growth rate of just 1.8% in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia’s financial and high-tech hub. Along with Hong Kong, South Korea and Taiwan, Singapore is one of the original Four Asian Tigers. Singapore is the 14th largest exporter and the 15th largest importer in the world. The country has the highest trade-to-GdP ratio in the world at 407.9%, signifying the importance of trade to its economy. The country is currently the only Asian country to have AAA credit ratings.

economIc IndIcAtors 2011GdP US$ 314.9 billion GdP per capita US$ 59.700 GdP real growth rate 4.9%Inflation rate 5.2%Unemployment rate 2%Labor force 3.237 millionSource: CIA World Factbook

ForeIgn trAdeSingapore is the eU’s 13th largest trading partner (trade in goods) and the eU’s largest trading partner in the Association of South-east Nations (ASeAN). eU-Singapore trade in goods and services each grew by some 40% between 2009 and 2011. The eU has a positive balance of trade in goods and in services with Singapore. Singapore is a major destination for european investments in Asia. Singapore is also Asia’s second largest investor in the eU (after Japan). In 2010, the existing stock of bilateral investment between the eU and Singapore reached



€190 billion, having expanded rapidly over the past years. Within the eU, The Netherlands was Singapore’s second largest trading partner in services in 2010, with 20% of the total trade in services (the UK was no.1 with 36%, Germany third with 13% and France fourth with 8%. The Netherlands was Singapore’s fourth largest eU trading partner in goods in 2011, with 15% of the total trade in goods (after Germany (20%), France (18%) and UK (17%).

ForeIgn dIrect InvestmentsThe eU was the largest source of Foreign direct Investment (FdI) in Singapore in 2010. Among eU countries, the Ne-therlands was by far the largest Foreign direct Investor in with 60.9 billion SGd in 2010. The Netherlands is the second largest investor in Singapore, after the United States and be-fore Japan, the United Kingdom, India and Switzerland. The stock of foreign direct investment (FdI) in Singapore rose 7.9 % from $573.3 billion as at end-2009 to $618.6 billion as at end-2010.

promIsIng sectors• Chemicals and Petrochemicals: Singapore has conquered a hub function for the region in many areas, first of all in the chemical industry. Hundreds of companies with different types of expertise in the petrochemical industry, such as advanced materials and specialty chemicals, have settled on Singapore’s Jurong Island. By building underground and floating facilities, innovative capacity for chemicals has been realized. due to plug-and-play infrastructure companies can quickly establish or expand themselves. The Institute of Chemical and engineering Sciences assists with research projects. Moreover attention is continuously paid to sus-tainability, examples are recycling waste heat and other remainders.• Banking and Financial: offshore banking is one of the fastest growing industries in the country. According to industry analysis, Singapore will be the fastest growing offshore private banking hub in the world over the next five years. Furthermore, investment banks, insurance compa-nies, credit card companies, consumer finance companies, government sponsored enterprises and brokers are strongly represented in Singapore.• Aviation: Besides the fact that Singapore is the regional hub for air traffic in Southeast Asia, Singapore also has a thriving MRo (maintenance, repair and overhaul) sector. Within the aviation industry in Singapore, there are many opportunities for dutch companies and research instituti-ons. Besides opportunities for cooperation in R&d and the field of maintenance, the planned construction of the new

airport terminal at Changi Airport creates opportunities.• Information and Communication Technology: The pro-duction of high-tech electronics and computer components (chips) make up a large part of the industry.• Biomedical: Singapore is working hard to promote and develop their biomedical industry. Singapore is investing in infrastructure, research funding and recruitment of top international scientists. Leading pharmaceutical companies, such as GlaxoSmithKline (GSK), Pfizer and Merck & Co., have set up factories in Singapore. The pharmaceutical industry now accounts for more than 16% of GdP.• Maritime: The port of Singapore is one of the busiest in the world and the maritime industry that is generated by the port makes up an important part of their economy (7% of GdP). There is a cluster of more than 5,000 maritime companies in the following sectors: shipping and port related industries, offshore, shipbuilding and ship repair, and maritime services such as shipping finance, marine insurance and maritime law.

geogrAphySingapore consists of 63 islands, including the main island, widely known as Singapore Island but also as Pulau Ujong. There are ongoing land reclamation projects, which have in-creased Singapore’s land area from 581.5 km2 in the 1960s to 704 km2 today; it may grow by another 100 km2 by 2030. Urbanization has eliminated most of the former rainforest, Bukit Timah Nature Reserve being the only significant remaining forest.

cultureSingapore is a very diverse and young country. It has many languages, cultures and religions for a country its size. due to the many different languages and cultures in the country, there is no single set of culturally acceptable behaviors. When Singapore became independent from the United Kingdom in 1963, most of the novel Singaporean citizens were uneducated laborers from China, Malaysia and India. A.T. Kearney named Singapore the most globalised country in the world in 2006 in its Globalization Index. The econo-mist Intelligence Unit in its “Quality-of-Life Index” ranks Sin-gapore as having the best quality of life in Asia and eleventh overall in the world.

about MALAySIA

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during the late 18th and 19th centuries, Great Britain established colonies and protectorates in the area of current Malaysia; these were occupied by Japan during the second part of the second world war. In 1948, the British-ruled territories on the Malay Peninsula except Singapore formed the Federation of Malaya, which became independent in 1957. Malaysia was formed six years later when the former British colonies of Singapore as well as Sabah and Sarawak on the northern coast of Borneo joined the Federation. The first years of the country’s independence were marred by a Communist insurgency, Indonesian confrontation with Malaysia, Philippine claims to Sabah, and Singapore’s departure from the Federation in 1965. during the 22-year term of Prime Minister Mahathir Bin Mohamad (1981-2003), Malaysia was successful in diversifying its economy from dependence on exports of raw materials to the development of manufacturing, services, and tourism. Prime Minister Mohamed Najib bin Abdul Razak (in office since April 2009) has continued these pro-business policies.

economyMalaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister Najib, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The Najib administration also is continuing efforts to boost domestic demand and reduce the economy’s dependence on exports. Never-theless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices. Ho-wever the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to les-sen its dependence on state oil producer Petronas. The oil and gas sec-tor supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia’s exposure to riskier financial instruments and accordingly the global financial crisis.

economIc IndIcAtors 2011GdP US $ 463.7 billion GdP per capita US $ 16.200GdP real growth rate 5.1%Inflation rate 3.2%Unemployment rate 3.1%Labor force 12.56 millionSource: CIA World Factbook


ForeIgn trAdeAccording to Malaysia’s Trade Performance 2011 and Invest-ment Performance 2011, the Netherlands features again as Malaysia’s second largest trading partner as well as foreign investor among the 27 eU Member States. With these figures, presented by the Ministry of International Trade and Industry (MITI) on February 9 and 21 respectively, the Netherlands maintains its strong position as compared to 2010. While Malaysian exports to the Netherlands showed a slight decrease compared to 2010, with an amount of RM 19.2 billion the Netherlands tops the ranking in 2011 as the largest export destination of Malaysian goods and services within the eU. Vice versa, dutch exports to Malaysia incre-ased by 6.4% in 2011 to a total amount of RM 3,6 billion. In addition, foreign direct investment from the Netherlands into Malaysia grew in 2011 with 8.1% to a total amount of RM 1,1 billion.

ForeIgn dIrect InvestmentsMalaysia recorded the third-highest level of foreign direct investment (FdI) in South east Asia last year, behind Singapore and Indonesia, and was fifth-highest in Asia, according to the United Nations Conference on Trade and development. The european Union was Malaysia’s fourth largest trading partner in 2011 with a share of 10.4% of the country’s total trade. It is also the fourth source of imports and fourth export destination. According to Malaysia’s Trade Performance 2011 and Investment Performance 2011, the Netherlands features again as Malaysia’s second largest trading partner as well as foreign investor among the 27 eU Member States.

promIsIng sectors• Agriculture, forestry, fishery: The most important agricultural product, rubber, is mainly extracted in West Malaysia. Half of the rubber production comes from small farmers. A second important agricultural export product is palm oil. Particularly important for domestic use is rice cultivation done by small businesses in Perlis, Kedah, Penang and Perak. Malaysia can fulfill its own needs in rice for about 75%. other important crops are coconuts, cocoa, pepper, tea, strawberries and pineapple. due to climatic and physical conditions stockbreeding is underdeveloped. Forestry (approximately 70% of Malaysia is forest) supplies various kinds of tropical hardwood. More than a quarter of the world need for hardwood is supplied by Malaysia and mainly Sabah. However as a result of legislation aimed at protecting the environment, this percentage decreases. By modernizing the fleet, the yield of the fishery doubled in ten

years. A large part of fishery is for domestic use, some of it is used for export, mainly to Singapore.• Mining: The main products of mining are bauxite, copper, gold, iron and manganese. The tin mining is no longer pro-fitable and is only practiced in West Malaysia. A Japanese consortium discovered large deposits of copper on Sabah, making it the fourth copper mining export product after oil, iron ore and bauxite. oil production takes place mainly in Sarawak and offshore in Sabah. offshore around Kuantan (West Malaysia) large stocks of oil and gas have been found.• Industry: Industrial activities are concentrated around Kuala Lumpur, and focus mainly on the processing of agri-cultural products and local raw materials. Furthermore, the industry produces textiles, electronic equipment, chemicals, machinery and cars (since 1985 assembly of cars started in collaboration with Mitsubishi).• Tourism: Tourism is an increasingly important pillar in the economy of Malaysia. The past 14 years the tourism indus-try in Malaysia has increased fivefold in terms of number of foreign visitors. Last year a record of 24.7 million tourists visited the country, which generated an income of 14.5 bil-lion euro.• Information and Communication Technology: Malaysian IT spending in 2012 was expected to rise to 5.2 billion in U.S. dollar, an increase of 4.9%. The growth areas in this sector lie in business intelligence and cloud computing. geogrAphyMalaysia is the 67th largest country by total land area, with a land area of 329,847 km2. It has land borders with Thailand in West Malaysia, and Indonesia and Brunei in east Malay-sia. It is linked to Singapore by a narrow causeway, and also has maritime boundaries with Vietnam and the Philippines. Brunei forms what is almost an enclave in Malaysia, with the state of Sarawak dividing it into two parts. Malaysia is the only country with territory on both the Asian mainland and the Malay Archipelago. The Strait of Malacca, lying between Sumatra and Peninsular Malaysia, is one of the most impor-tant thoroughfares in global commerce, carrying 40 per cent of the world’s trade

cultureMalaysia has a multi-ethnic, multicultural, and multilingual society. The original culture of the area stemmed from indi-genous tribes that inhabited it, along with the Malays who later moved there. Substantial influence exists from Chinese and Indian culture, dating back to when foreign trade began.

MALAySIA - SoFT LANdING To ASIABy Tsvi Vinig, PhDAssociate professor for EntrepreneurshipUniversity of Amsterdam Business School

What can dutch students look for, learn, and experience during a Research Project to Malaysia? Learn about doing business in Asia? Learn about the dutch in the history in Malaysia? Learn about the Association of Southeast Asian Nations (ASeAN) countries? of course all the above and more but while writing I realize that the list can go on and on, but the one topic I would like to draw attention to is Malaysia as a multi-cultural, multi-ethnic society. While multi-cultural society was declared a failure in The Netherlands (and in fact in the rest of Western europe), Malaysia provides an example of a country build around multi-cultural, multi-ethnic society.

Malaysia includes many ethnic groups: Malay 50.4%, Chinese 23.7%, indigenous 11%, and Indian 7.1%, who are practicing different religions: Muslim 60.4%, Buddhist 19.2%, Christian 9.1%, Hindu 6.3%, Confucianism, Taoism and other traditional Chinese religions 2.6%. They all live, study and work alongside each other while coping with the ongoing challenges such a multi-cultural, multi-ethnical society presents. Bahasa Malay is the official language but english is the active second language in Malaysia, which makes it easy for tourists, business people and students to manage during the stay in Malaysia. one of the best ways visitors can experience the Malayan multi-ethnic society is through taking a culinary tour and tasting the multi-cultural cuisines of Malaysia.

An interesting observation is the presence of Malayan women, (the majority of Malayan are Muslim), in high positions within government (eg. Malaysian ambassador to The Netherlands), business (eg. Ceo of eoN Cap Islamic Bank), and higher education (eg. former Vice Chancellor of the University of Malaya). This is a striking difference compared to the position of women in other Muslim courtiers.

during my years as visiting professor at the at the Asia-europe Institute (AeI), of the University of Malaya we welcomed students from ASeAN, Middle east and european countries in the different programs. during the evaluations of the courses the students and the (local and visiting) professors shared their enthusiasm of being inspired and stimulated by being part of multi-ethnic, multi-cultural group. To further expose students and faculty to different cultures, seminar series and cultural events are organized at the AeI.

This Research Project is a great opportunity for the students to learn, understand and experience two interesting counties that offer a ‘soft landing’ into Asia. However, to take advantage of this opportunity you will need to prepare and educate yourself on the society, economy, culture, regional development (ASeAN) and aspect topics to help you better understand this part of the world.



By Douglas Abrams Founder and Managing Director, Expara Pte Ltd Email: [email protected]

It is a great pleasure to be invited to write an introduction to Singapore for the FSA Research Project. originally from the U.S, I arrived in Singapore in 2000 to set up my first company. over the next 12 years, I have founded five companies here and invested in more than twenty others. I would definitely say that I have found the business environment here highly conducive.

Singapore is home to about 5 million people, of which 42% are foreigners. It is a cosmopolitan melting pot of Chinese, Malays, Indians, Caucasians, eurasians and Asians of different origins. This has given the country a unique lifestyle and a fascinating culture. Singapore has been an astounding economic success story, having advanced from “third world to first world” within the last forty years. There are five key advantages that underlie the pro-business culture in Singapore and its rapid rise: strategic location, business-friendly and stable political system, IP regime and corporate governance, tax policy and talent pool.

strAtegIc locAtIon Strategically located in the heart of Southeast Asia, a location in Singapore makes it possible for any business to access a total market of 2.8 billion people within a few hours travel. China, Indonesia, Korea, and Japan are all within a 7-hour flight radius of Singapore. This favorable location is augmented by a first-rate infrastructure that has been developed to meet global business and industry needs.

Business-fRiendly and staBle Political systeM Singapore is ranked first as the easiest place to do business in the world in the annual doing Business report from the International Finance Corporation and The World Bank. This finding makes it the country’s seventh consecutive time as number one on the list. The Global Competitiveness Report 2011-2012 by the World economic Forum placed Singapore in the second position after Switzerland. Singapore also enjoys many favorable rankings such as being Asia’s most “network ready” country and most transparent country. Singapore’s government is a model of stability in the region.

strong Ip protectIon regIme And corporAte governAnce Singapore has consistently been voted the most IP-protective country in Asia, with the best corporate governance and the least corruption. IP protection is especially important new companies, where IP may form an important part of their competitive advantage low tAx rAtes Singapore has low effective individual and corporate tax rates. The country also has a comprehensive avoidance of double taxation with the Netherlands.

tAlent pool Singapore has an outstanding work force, made up of both local and foreign talent. Since the country’s economy is largely knowledge-based, its labor force is skilled and educated. despite a diversified work force, english is the working language in Singapore, making it easy for foreigners to set up base in the country.

Building on these key advantages, Singapore, like the Netherlands, is a dynamic and multifaceted international hub. As the Netherlands does for europe, Singapore plays the role of connector and facilitator to other South-east Asian countries in the region.

There are many investment opportunities for companies in Singapore. The economic rise of Asia is rapidly encouraging the birth of new startups and private equity players in Singapore. There are also several prominent networks in Singapore that promote an investment culture in the country. These include Business Angel Network Southeast Asia (BANSeA) and Singapore Venture Capital Association (SVCA). In 2011, Singapore is ranked 4th globally and 1st in Asia for its attractiveness to venture capital and private equity in the Venture Capital and Private equity Country Attractiveness Index.

The FSA research project is an initiative that can effectively facilitate future collaborations between dutch companies and Singaporean ones. I would like to thank the scholars of FSA once again for inviting me to contribute to such a meaningful project. I am confident that you will find that Singapore has a lot to offer to dutch companies. I hope this project will be a fruitful experience for all involved.

doING BUSINeSS IN SINGAPoRe


CoMMITTee

Kjell mulderCoordinatorMsc finance

suzan hofsteeSecretaryBSc International Business Administration

rik plenderTreasurerMsc finance

Anneloes van golstein BrouwersCoordinatorMSc Financial Management

Jan-willem haanHead of AquisitionMSc Business Administration: Strategy & organization

lotte nijenhuisChairmanBSc Business economics


PARTICIPANTS

gisbert van BaalenMSc Business Administration: Strategy & Organization

sylvia meyerMSc Business Administration: Strategy & Organization

Bas steemanMSc Finance

Maxime BurgersMSc Business Administration: Supply Chain Management

Matthijs MullerMSc Physics and MSc Finance

marrit teirlinckBSc Business Economics

alwin fafieanieBSc Business Economics

Bart sandbergenBSc Business Economics

rosanne verheyenMSc Business Administration: Strategy & Organization

Aurora FryarsMSc Finance

pieter speksnijderBSc Business Economics

Central europe 1995

Argentina 1996/2009

Brazil 1997/1999/2005

Mexico 1998/2002

Indonesia 2008

India 2001/2003/2006/2012

South Africa 2000/2007/2011

Israel 1994

Russia 2004

Central europe 1995

China 2010

Singapore and Malaysia 2013

Financial Study association Amsterdam (FSA)

Roetersstraat 11Room e2.11 1018 WB AmsterdamThe Netherlands

T: +31 (0)20 525 65 12e: [email protected]: www.fsaresearchproject.nl

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