Multinationals Favour Singapore As Regional HQ Destination - Survey

Tom Burroughes

11 April 2016

Singapore remains the most attractive Asia-Pacific destination for multinational companies to set up regional headquarters but the jurisdiction cannot sit on its laurels, according to real estate services firm DTZ/Cushman & Wakefield.

The Asia-Pacific region is forecast to increase its share of global gross domestic product from 31 per cent in 2015 to 36 per cent by 2030 and against that background, the number of regional HQs in the region will likely expand.

DTZ’s report said all of the six cities covered - Singapore, Hong Kong, Shanghai, Sydney, Tokyo and Beijing – have strengths, with Singapore in the lead. While Sydney and Tokyo are established regional HQ destinations, their location on the geographic periphery of the Asia-Pacific region counts against them both. However, recent depreciation of their respective currencies has made them cheaper, which acts in their favour. Beijing has seen costs rise including cost of acquiring land as well increasing employment costs, but is increasingly open to entrepreneurs.

The study did not isolate multinationals by sectors, such as banking and finance, but may be indicative of why the city-state remains prominent for international banks as a hub.

Singapore and Hong Kong took the top two places respectively, with Shanghai in third.