Generally investing companies relied on the private sector for manpower and services. SISIR however did act as a "guardian angel" for small companies and facilities such as secretarial services and office machinery were available in the Science Park. In commenting on the shortage of labour situation, Mr Yeo said that where appropriate the government encourage foreign companies to reinvest outside Singapore. One example was Hitachi who had been encouraged to manufacture some of their products in Johor.
5. Outward Investment. In 1988 the Ministry of Finance had, as the result of EDB lobbying, granted tax concessions to encourage Singaporeans to invest overseas. Under the terms of the tax concessions, Singaporeans were granted a grace period whereby all profits brought home would be tax free. Tax losses overseas on investments could be written off. The EDB would provide 50% of research costs in connection with overseas investment. There was frequently a spinoff to home industries. He instanced Mobil Aerospace in the US which was wholly owned by Singapore Aerospace. The high value added parts for this company were manufactured in Singapore. In general the EDB leaves overseas investment to the private sector. Companies could however receive assistance from EDB offices overseas. Where top-up finance is required, the EDB can obtain financial assistance from the government. Mr Yeo said that one of the constraints for Singapore companies in investing overseas centred on the shortage of trained Singapore management. The High Commissioner said that the High Commission was interested in helping Singapore companies looking for outward investment opportunities. Mr Yeo said that because of limited manpower EDB's role was restricted to drawing up a list of interested companies. By and large EDB do not interfere with Singapore company plans.
6.
Growth Triangle. About 500 companies from Singapore had started up in Johor. There was however a shortage of labour problem arising there. Indonesia had unsuccessfully tried to develop Batam for more than 15 years. A 747 class airport would be completed there by next year. Negotiations with the Indonesians had resulted in agreement that 100% ownership of land was available for a period of five years. After that 95% ownership of land was to be allowed in perpetuity. The Singapore government had encouraged the relocation of electronics manufacture from Singapore. They had been instrumental in founding Batamindo. An industrial estate was being constructed with a job expectation of 50,000. Two companies were operating
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