In recent years, the industrial development in the Asia-Pacific region has shown new characteristics. Singapore continues to strengthen its status as a technology research and development center with its complete innovation ecosystem; India relies on its huge talent pool to develop rapidly in the fields of IT services and advanced manufacturing; Indonesia continues to expand its market influence with the help of digital economic transformation; Malaysia through electronic The advantages of electrical industry clusters have steadily improved the status of the industrial chain; Thailand has accelerated industrial upgrading through the Eastern Economic Corridor Plan.

Governments of various countries have introduced targeted industrial park planning and talent policies, such as Singapore’s Tech.Pass plan and Malaysia’s TalentCorp project. These measures directly affect the investment decisions and operating costs of enterprises. For companies planning to deploy in the Asia-Pacific region, accurately understanding the characteristics of industrial parks in various countries, differences in talent policies, and implementation details of related supporting measures will effectively reduce investment risks and optimize resource allocation.

This report provides investors with practical reference information through field research and policy analysis of key industrial parks in five countries, combined with the latest operational data and corporate feedback, and helps companies make more accurate investment decisions.

New pattern of industrial development in Asia-Pacific

With the adjustment of the global economic structure, the industrial development in the Asia-Pacific region has taken on new characteristics. Data from 2024 show that the Asia-Pacific region’s status in the global industrial chain continues to improve, with its total GDP accounting for 47% of the world’s total, of which five countries contribute more than 60% to regional economic growth.

1.1 Regional economic development trend

The restructuring of industrial chains in the post-epidemic era is profoundly affecting the economic development of the Asia-Pacific region. According to a report released by Ernst & Young Consulting in 2024, more than 65% of multinational companies have chosen to establish supply chain alternatives in the Asia-Pacific region, especially in areas such as electronic manufacturing, auto parts, and medical devices. Specific manifestations include trends such as Japanese companies transferring production capacity to Southeast Asia, and European and American companies setting up R&D centers in India.

The full implementation of RCEP has injected new impetus into regional economic integration. Since entering into force in 2022, trade volume between member states has grown at an average annual rate of 15.6%. Especially in terms of tariff concessions, 91.5% of products have achieved zero tariffs, which has greatly promoted industrial collaboration within the region. In the first three quarters of 2024, intra-regional trade volume under the RCEP framework reached US$3.2 trillion, a year-on-year increase of 18.3%.

Digital economic transformation has become a major driving force for regional development. According to the “2024 Southeast Asia Digital Economy Report” jointly released by Google, Temasek and Bain & Company, the scale of the region’s digital economy is expected to reach US$350 billion by 2025. The rapid spread of digital infrastructure such as electronic payment, e-commerce, and cloud computing provides strong support for the upgrading of traditional industries.

1.2 Benchmarking of industrial strength among five countries

Singapore continues to consolidate its position as a regional center for innovation, technology and finance. It will rank seventh in the Global Innovation Index in 2024, with R&D expenditure accounting for 3.8% of GDP. The number of financial technology companies has exceeded 1,200, with assets under management exceeding S$4 trillion. The government launched the “Singapore Smart Nation 2025” plan, investing approximately S$2 billion to support the development of cutting-edge technologies such as artificial intelligence and quantum computing.

India’s advantages in IT services and manufacturing are becoming increasingly prominent. IT service exports reached US$227 billion, with a global market share of over 55%. In terms of manufacturing, the “Made in India” plan has attracted a total of more than 100 billion US dollars in foreign investment. More than 5,000 companies have settled in IT industrial parks in cities such as Bangalore and Hyderabad, employing more than 2 million people.

Indonesia’s digital economy is booming and the domestic demand market has huge potential. The scale of e-commerce transactions will reach US$130 billion in 2024, and the penetration rate of mobile payment will exceed 80%. The government’s “Indonesia 4.0 Roadmap” focuses on supporting the five pillar industries of food and beverages, textiles and clothing, automobiles, electronics and chemicals, and has introduced preferential tax policies to attract foreign investment.

Malaysia’s electronic and electrical industry has outstanding advantages. The export value of electronic and electrical products accounts for 38.7% of the total manufacturing exports, and its market share in the global semiconductor packaging and testing market reaches 13%. Electronic manufacturing clusters such as Penang and Selangor have complete industrial supporting facilities and have attracted investment from more than 50 Fortune 500 companies.

Thailand’s automobile manufacturing and smart industries are developing rapidly. With an annual automobile output of more than 2 million vehicles, it is the largest automobile manufacturer in Southeast Asia. The “Thailand 4.0” strategy focuses on the development of ten major industries such as smart electronics and medical tourism. The Eastern Economic Corridor (EEC) has attracted investment of more than 50 billion US dollars. The “New Generation Automobile Industry Development Plan” launched in 2024 will invest 20 billion baht in the next five years to support the development of the electric vehicle industry.

The industrial advantages of various countries are complementary and the synergy effect is obvious. Taking the electronics industry as an example, Singapore focuses on R&D and design, Malaysia focuses on packaging and testing, and Thailand has developed its own characteristics in parts manufacturing. This industrial division of labor makes the regional industrial chain more resilient and competitive. Combined with the tariff preferences and trade facilitation measures under the RCEP framework, companies can make full use of the advantages of each country, optimize industrial layout, and enhance comprehensive competitiveness.

Note: The above data are derived from the latest reports from national statistical bureaus, the World Bank, and major consulting organizations. Some of the 2024 data are forecast values.

Analysis of layout of key industrial parks

2.1 Singapore Industrial Park

Jurong Innovation District (JID) is Singapore’s latest industrial transformation benchmark. Covering an area of ​​approximately 600 hectares, with a planned total investment of S$40 billion, it will be fully completed in 2028. At present, 70% of the first phase of the project has been completed, attracting more than 150 advanced manufacturing companies to settle in. The park is characterized by the deep integration of “industry, academia and research” and has established cooperation with Nanyang Technological University to establish a joint R&D center. Enterprises can enjoy a tax deduction of 25% of the total investment and a 250% tax deduction for R&D expenditures.

As an important aviation maintenance base in the Asia-Pacific region, Seletar Aerospace Park currently gathers more than 20 industry leading companies such as Airbus and Rolls-Royce. The park’s maintenance revenue will reach S$9 billion in 2024, with more than 6,000 employees. The park provides “one-stop” services to settled companies, including specialized talent training programs and supply chain management support.

Qiao Biopharmaceutical Park has developed into Asia’s leading biopharmaceutical R&D center. The park has 300,000 square meters of professional laboratories and 8 pilot bases. The output value of biomedicine will reach S$35 billion in 2024, with R&D investment exceeding S$1.5 billion. The government provides subsidies of up to 70% of R&D expenses and has set up a special fund of S$500 million to support the research and development of innovative drugs.

One-north Technology Park focuses on the development of biomedicine, information and communications, media and technology industries. The park implements a “sandbox policy” to allow companies to experiment with innovative technologies. There are more than 400 existing companies, including 16 unicorn companies. The “Technology Innovation Acceleration Plan” launched in 2024 will provide start-up capital of up to S$2 million to companies entering the country.

2. 2Indian Industrial Park

Bangalore Electronic City is the largest IT industry cluster in India. The park covers an area of ​​450 acres, has more than 200 companies settled there, and has an annual software export volume of US$28 billion. The park implements a “plug and play” infrastructure system, providing 100% power guarantee and gigabit network connection. In 2024, a new “Digital Talent Cultivation Plan” will be added to train 20,000 IT professionals every year.

Hyderabad HITEC City is famous for IT service outsourcing, with more than 150,000 employees. The park launched the “IT Industry Support Policy 2.0”, which provides newly established IT companies with a five-year tax holiday and rental subsidies. The park’s service export volume will reach US$15 billion in 2024, with a growth rate maintained at more than 20%.

Noida Tech Park focuses on developing software development and IT services. The park has complete supporting facilities, including residential areas, commercial areas and educational facilities. Currently, there are more than 300 companies settled there, providing 80,000 jobs. The park’s characteristic policies include five-year installment payment of land transfer fees, tariff reduction and exemption on imported equipment, etc.

Pune IT Park has developed rapidly and has become the largest IT center in western India. There is a dedicated entrepreneurial incubator in the park, providing office space, technical support and financing docking. In 2024, 52 new foreign-funded enterprises will be added, with a total investment of US$1.5 billion.

2.3 Indonesian Industrial Park

Jakarta Smart Industrial Park adopts a two-wheel drive model of “intelligent manufacturing + digital services”. The park covers an area of ​​2,000 hectares and is equipped with full 5G network coverage. In 2024, an industrial Internet platform will be introduced to help enterprises achieve digital transformation. The park provides “full electronic” approval services, and the company registration time is shortened to 3 working days.

Cirebon Industrial Park is a landmark project of China-Indonesia cooperation. The park has a total investment of US$5 billion, focusing on the development of new energy, new materials and other industries. The first phase of the project has been put into operation and 47 companies have been introduced. The park enjoys special economic zone policies, including tax exemptions on equipment imports and VAT deferral on raw material imports.

Batam Industrial Park is located in the Free Trade Zone and has convenient water, land and air transportation. The park mainly develops industries such as electronic manufacturing and precision machinery. There are currently 120 manufacturing companies settled in the area, with an annual output value exceeding US$10 billion. The park provides foreign-invested enterprises with land use rights of up to 30 years and implements a preferential income tax rate of 15%.

Mokwat Technology Park focuses on developing new digital economy formats. The park has the largest data center cluster in Southeast Asia, with a server capacity of 100,000 units. In 2024, the “Digital Economy Talent Training Plan” will be launched and cooperative relationships will be established with 12 universities.

2.4 Malaysian Industrial Park

Penang Technology Park is a major electronics manufacturing town with a complete industrial supporting system. There are 8 professional industrial clusters in the park, covering semiconductor, LED, medical equipment and other fields. Exports will reach 45 billion ringgit in 2024, attracting US$3.2 billion in foreign investment. The park implements a “green channel” policy, and the approval time for major projects does not exceed 20 working days.

Selangor Smart Technology Park focuses on the development of emerging industries such as 5G applications and artificial intelligence. The park has a “Future Factory Demonstration Zone” to promote intelligent manufacturing solutions. There are currently 180 companies settled here, of which 75% are technology-based companies. The park launched the “Talent Housing Project” to provide housing subsidies for high-end talents.

Iskandar Special Economic Zone is located in southern Malaysia and is an important gateway to Singapore. The special zone is divided into two areas, A and B, with a total area of ​​2,217 square kilometers. It has attracted investment of more than 100 billion ringgit and created 400,000 jobs. The special zone implements a number of preferential policies, including a 10-year tax holiday and income tax concessions for foreign employees.

Kuching Digital Innovation Center is the largest technology park in East Malaysia. The park focuses on the development of industries such as digital creativity and e-commerce. An innovation fund of 500 million ringgit will be established in 2024 to support local technology entrepreneurship. The park provides “one-on-one” business consulting services to settled enterprises.

2.5 Thailand Industrial Park

The Eastern Economic Corridor (EEC) is Thailand’s most important industrial upgrading project. Covering Chachoengsao, Chonburi and Rayong provinces, the total area is 13,285 square kilometers. Focus on the development of 12 target industries such as new generation automobiles and intelligent electronics. A total of 2,800 investment projects will be approved in 2024, with a total investment amount of 2.9 trillion baht. The EEC implements a number of preferential policies, including corporate income tax exemption for up to 13 years, reduction and exemption of import tariffs on machinery and equipment, etc.

The Science Park Technology Park is located in three areas: Bangkok, North and East. The park focuses on high-tech research and development and has shared laboratories and pilot bases. In 2024, R&D investment will reach 15 billion baht, and 1,200 patents will be applied for. The park provides R&D enterprises with a tax deduction of up to 300% of R&D expenses.

The Digital Innovation Park is located in the center of Bangkok and focuses on the development of financial technology and digital creative industries. There are 5G innovation centers and artificial intelligence laboratories in the park. There are currently 300 innovative companies incubated, including 2 unicorn companies. The park implements a “regulatory sandbox” policy to support financial innovation.

The Bangkok Smart City project covers the central area of ​​Bangkok and uses smart transportation, smart energy and other solutions. The construction of smart light poles, smart parking and other systems will be completed in 2024, with services covering a population of 5 million. The project provides scenario application opportunities for technology companies and provides operational subsidy support.

Industrial parks in various countries have their own characteristics, forming a dislocated development pattern. Enterprises can choose a suitable park to settle in according to their own needs. It is recommended to pay attention to the following key points: industrial positioning matching , intensity of preferential policies , completeness of supporting services , talent supply , and logistics cost levels . It should be added that the policies of each park may be adjusted according to the actual situation. It is recommended to conduct on-site inspections and consult the latest policies before investing.

Comparison of talent policy systems in five countries

3.1 Innovation in talent introduction policies

Singapore’s Tech.Pass program targets global technology talents and will expand its issuance scale to 1,000 places per year from 2024. Applicants only need to meet any of the following conditions: annual salary of more than S$200,000, more than 5 years of management experience in technology companies, or successful entrepreneurial experience. This program allows holders to freely start businesses, serve as company directors, carry out investments and other activities in Singapore. The EP (Employment Pass) fast track provides 48-hour fast approval services for high-end talents with a monthly salary of more than S$22,500.

India’s Startup India talent program focuses on supporting technology entrepreneurship. The 2024 new policy allows foreign entrepreneurs to enter the country with a “self-employed visa”, with the validity period extended to 5 years. For talents in key fields such as AI and quantum computing, entrepreneurial capital support of up to 10 million rupees will be provided. This plan has attracted more than 5,000 overseas talents to return to India to start businesses, with the value of the founded companies exceeding US$10 billion.

The Indonesia Digital Talent visa program provides convenience for talents in the digital economy. A new “digital nomad visa” category will be added in 2024, allowing remote workers to stay in Indonesia for up to 2 years. For IT talents with an annual salary of more than US$100,000, they can enjoy fast-track services and the visa processing time is shortened to 5 working days. It has attracted more than 2,000 digital talents to enter the country.

The TalentCorp project in Malaysia adopts the “industrial demand-oriented” model. In 2024, we will focus on introducing talents in 15 urgently needed fields such as electronic manufacturing and digital economy. This project provides companies with foreign talent recruitment quotas and a 30% subsidy of recruitment costs. At the same time, a talent development fund of 300 million ringgit was established to support enterprises in carrying out international talent training.

The Thailand Smart Visa program is divided into four categories: highly skilled experts (T), investors (I), business executives (E) and entrepreneurs (S). The application conditions will be relaxed in 2024, and the minimum annual salary requirement for the T category will be reduced to 1 million baht. The visa is valid for up to 4 years, and your spouse and children can obtain the right of residence at the same time. More than 5,000 Smart Visas have been issued so far, 60% of which are in the technology sector.

3.2 Supporting measures for talent retention

In terms of tax incentives, Singapore provides a 15% preferential tax rate for high-end talents, and R&D personnel can enjoy a 50% personal tax reduction. India implements a “half tax for the first five years” policy for experts in specific fields. Participants in the Malaysian MM2H program enjoy a fixed 15% preferential tax rate. Personal income tax for Thai Smart Visa holders is capped at 20% for the first four years.

In terms of housing subsidies, Singapore provides EP holders with the right of first refusal on HDB flats. Talent apartments have been set up in Bangalore, India, and other places, and the rents are 30% lower than the market price. Malaysia provides housing purchase subsidies of up to 200,000 ringgit for TalentCorp project talents. Thailand’s EEC area provides rental subsidies for high-end talents, up to 50% of the monthly rent.

In terms of children’s education support, Singapore International School reserves 30% of places for EP children. Top institutions such as IIT in India provide admission convenience for the children of overseas talents. Malaysia has set up international school education vouchers with a maximum annual price of 20,000 ringgit. Thailand allows children of Smart Visa holders to attend Thai international schools and provides tuition subsidies.

In terms of medical security, countries generally provide commercial medical insurance subsidies for high-end talents. Singaporean EP holders can participate in the premium co-payment plan. Malaysia provides annual physical examination and medical insurance for TalentCorp talents. Thailand provides VIP medical channel services for Smart Visa talents.

In terms of permanent residence convenience, Singaporean EP holders can apply for PR after working for 2 years. India implements PR fast track for experts in specific fields. Malaysian TalentCorp project talents can directly apply for PR after 5 years. Thai Smart Visa holders can give priority to apply for permanent residence after 4 years.

3.3 Construction of talent cultivation system

In terms of higher education resources, Nanyang Technological University in Singapore and others have established international graduate schools that provide full scholarships. India’s IITs are expanding their international enrollment, and the proportion of international students will reach 15% in 2024. Malaysia has three universities ranked among the top 100 in the world. Chulalongkorn University in Thailand and other universities offer majors taught entirely in English.

In terms of vocational skills training, Singapore’s SkillsFuture program provides each citizen with a S$1,000 training voucher. India’s PMKVY plans to train 1 million skilled talents every year. The Malaysian HRD Fund supports corporate employee retraining. Thailand’s EEC launched a “skills improvement voucher” program covering 500,000 industrial workers.

In terms of the industry-university-research cooperation model, Singapore implements an “industrial mentor” system in which corporate executives participate in university teaching. India has established 200 industrial research centers. Malaysia implements a “dual-track system” of vocational education. Thailand has established 12 industrial talent training centers.

In terms of international education cooperation, Singapore has established joint research institutes with MIT and others. India has launched a “2+2” double degree program with the United Kingdom, the United States, Australia and other countries. Malaysia has introduced 10 branches of world-famous universities. Thailand and Japan carry out industrial skills talent training projects.

In terms of support for innovation and entrepreneurship, various countries have generally established university science parks and entrepreneurship incubators. StartupSG Singapore provides entrepreneurial funding of up to S$500,000. India sets up Rs 1,000-crore innovation fund. Malaysia launches “Entrepreneurship Guarantee” scheme. Thailand provides support of up to 10 million baht for technology startups.

Analysis of talent development effectiveness: With its comprehensive policy system, Singapore has become a talent highland in Asia, with foreign talents accounting for 25% of the labor force . India has obvious IT talent advantages, training 800,000 engineers every year, but the outflow of high-end talents is serious . Indonesia has a huge digital talent gap, with the gap expected to reach 9 million in 2025 . Malaysia’s talent policy is flexible, but it faces pressure from talent competition . Thailand has promoted talent gathering through EEC construction, but the high-end talent pool is still insufficient .

It is recommended that enterprises comprehensively consider the talent policy advantages of various countries based on their own needs: technology R&D talents should give priority to Singapore , IT service talents can focus on India , digital economy talents can choose Indonesia , manufacturing technical talents can consider Malaysia , and emerging industry talents can choose Thailand. EEC . It should be noted that talent policies in various countries will be dynamically adjusted according to the needs of economic development. It is recommended to pay attention to policy updates in a timely manner.

Assessment of the comprehensive strength of industrial parks in the five countries

4.1 Infrastructure supporting facilities

In terms of transportation connectivity, Singapore’s Jurong Innovation District (JID) is located at the intersection of the Blue Line and Green Line of the Metro, 45 minutes from Changi Airport; India’s Bangalore Electronics City is directly connected to the city center through the Purple Line of the Metro, with a dedicated rapid bus line; Indonesia Jakarta Kalimantan Industrial Park Equipped with a light rail system, the Airport Express will be added in 2024; Malaysia’s Iskandar Special Economic Zone has a north-south expressway directly connected to Singapore, with a customs area express lane; Thailand’s Eastern Economic Corridor (EEC) connects to Suvarnabhumi Airport through high-speed rail, and freight The railway goes directly to Laem Chabang Port.

In terms of digital infrastructure construction, Singapore’s JID has achieved 5G+ coverage in the entire park, with a data center capacity of 100MW; India’s electronic city has deployed an IPv6 network with a bandwidth capacity of 100Gbps; Indonesia’s Kalimantan park has built a “digital twin” system to achieve intelligent management; Malaysia has The Skanda Special Economic Zone launched a 5G application demonstration zone to test autonomous driving and other scenarios; Thailand’s EEC built Southeast Asia’s largest cloud computing center with an investment of US$2 billion.

In terms of public service facilities, Singapore’s JID has set up a one-stop service center to handle business 24 hours a day; India’s electronic city is equipped with firefighting, medical and other emergency facilities, and the response time is controlled within 10 minutes; the Indonesian park has a sewage treatment plant with a daily processing capacity of 10 million tons; Malaysia has set up a customs clearance service center to provide 7×24 hours customs clearance services; Thailand’s EEC is equipped with an independent power supply system, with a reliability of 99.99%.

In terms of complete living facilities, Singapore JID plans a 15-minute living circle, including international schools, shopping malls, etc.; India Electronics City has 5-star hotels and high-end apartments; Indonesian park supporting staff dormitories can accommodate 20,000 people; Malaysia’s Iskandar Special Economic Zone There are international hospitals and shopping malls; Thailand EEC plans to build a 50 square kilometer living area.

4.2 Comparison of business environment

In terms of government efficiency, Singaporean enterprise registration can be completed in 4 hours at the fastest, and all types of licenses are processed through “one window”; India’s Electronic City has set up a green channel, and major project approvals do not exceed 30 days; Indonesia implements “3-hour fast processing” system; Malaysia has launched an online approval platform, and routine business is completed within 2 working days; Thailand’s EEC Administration has “one-stop” approval authority.

In terms of legal system, Singapore adopts a common law system and has a specialized international commercial court; India has established a specialized intellectual property court and the trial cycle has been shortened to 6 months; Indonesia’s new “Investment Law” strengthens the protection of foreign investment; Malaysia has established a special economic zone arbitration center; Thailand EEC enjoys special legal status and simplifies foreign investment procedures.

In terms of intellectual property protection, the average review period for patent applications in Singapore is 12 months and a “patent priority” system is implemented; India’s Electronic City has established an intellectual property protection center to combat infringement; Indonesia has strengthened trademark registration protection and shortened the review cycle to 6 months ;Malaysia implements a fast review channel for intellectual property rights; Thailand gives priority to intellectual property cases in the EEC region.

In terms of financial service support, Singapore provides up to 70% of industrial development loans; India has established a 10 billion rupee industrial fund; Indonesia provides export credit support; Malaysia provides 30% financing subsidies for key industries; and Thailand’s EEC projects can enjoy BOI investment preferential policies.

4.3 Cost-benefit analysis

Land/rent cost: Singapore’s JID industrial land rent is about 90 Singapore dollars per square meter per year, and the monthly office rent is about 12 Singapore dollars per square meter; the land transfer price in India’s Electronic City is 3 million rupees per mu, and the monthly factory rent is per square meter. 45 rupees; the land rent in Kalimantan Park in Indonesia is US$15 per square meter per year; the price of industrial land in Iskandar Malaysia is 800,000 ringgit per acre; the EEC industrial land in Thailand is about 3 million baht per rai.

Human resources cost: The monthly salary of technical workers in Singapore is about 3,000 Singapore dollars, and the starting salary of engineers is 5,000 Singapore dollars; the monthly salary of Indian IT programmers is 40,000 to 80,000 rupiah; the minimum wage of Indonesian industrial workers is 3 million rupiah/month; the monthly salary of Malaysian technicians is 3,000-5,000 rupiah Ringgit; the monthly salary of Thai EEC skilled workers is 15,000-25,000 baht.

Operating costs: Singapore industrial electricity consumption is SGD 0.22/kWh, commercial water tariff is SGD 2.74/kWh; Indian industrial electricity price is 8 rupees/kWh; Indonesian park electricity consumption is US$0.07/kWh; Malaysian special economic zone electricity price is 0.38 ringgit/kWh; Thailand EEC enjoys preferential energy prices.

Tax cost: Singapore’s corporate income tax is 17%, and you can enjoy up to 25% R&D super deduction; India’s Electronic City corporate income tax is discounted to 15%; Indonesia provides a tax holiday of up to 20 years; Malaysia’s corporate income tax is reduced to 0-10%; Thailand EEC key industries enjoy tax exemption for up to 13 years.

Cost of living: The monthly rent for a three-room apartment in Singapore is S$4,000, and the annual international school fee is S$50,000-60,000; the rent for an apartment in Electronics City in India is Rp 30,000-50,000 per month; the monthly rent for employee dormitories in the Indonesian park is US$200-300; in Malaysia The monthly rent for residences in the living area is 2,000-3,000 ringgit per month; the monthly rent for apartments in the EEC living area in Thailand is 15,000-25,000 baht.

Comprehensive evaluation recommendations: High-tech industries give priority to Singapore JID, which has the best innovation environment despite higher costs ; IT service outsourcing can consider Indian Electronics City, which has obvious talent advantages ; labor-intensive manufacturing industries are suitable for Indonesian parks, with comprehensive cost advantages ; advanced The manufacturing industry can choose Malaysia’s Iskandar Special Economic Zone, which has complete infrastructure ; the emerging industry layout can consider Thailand’s EEC, which has strong policy support .

Investment advice: Pay attention to the matching between the industrial positioning of the park and enterprise needs , comprehensively assess operating costs, prepare medium and long-term budgets , pay attention to the completeness of supporting facilities, especially the living security of professional talents , pay attention to the intellectual property protection environment , and examine the supporting capabilities of the local supply chain . Each park is continuing to optimize the business environment, and it is recommended that enterprises continue to track policy changes and choose investment locations that are most suitable for their own development. At the same time, various preferential policies should be fully utilized to reduce operating costs and increase return on investment.

Investment opportunities in key industries

5.1 Layout of emerging industries

In the field of artificial intelligence, Singapore invested S$5 billion to build the “AI Super Corridor”, focusing on the development of applications such as autonomous driving and smart medical care. It has attracted Google, Microsoft, etc. to establish AI R&D centers, and the scale of the AI ​​industry is expected to reach SGD 20 billion in 2025. Bangalore, India, established an AI Innovation Park to support 200 AI start-ups, focusing on machine learning and computer vision application development. Thailand EEC plans to build an “AI Ecological Park” with an investment of 5 billion baht, focusing on the development of smart manufacturing AI applications.

In terms of biotechnology, Singapore’s Jurong Biomedical Park has gathered eight global pharmaceutical giants including Pfizer and Novartis, with an annual output value of more than S$30 billion. Hyderabad Bio Valley in India focuses on the development of biosimilars, accounting for 30% of the global market share. Iskandar Biotech Park Malaysia invested 5 billion ringgit to build a vaccine research and development center. Indonesia’s BSD Life Science Park focuses on tropical disease research and has established cooperation with 20 pharmaceutical companies around the world.

In the new energy industry, Thailand’s EEC plans a 1,000 square kilometer renewable energy demonstration zone, focusing on the development of photovoltaic manufacturing, energy storage equipment and hydrogen energy applications, and plans to attract US$10 billion in investment by 2025. Kuantan Industrial Park in Malaysia is building the largest photovoltaic industry cluster in Southeast Asia, with an annual production capacity of 15GW. The renewable energy park in Gujarat, India, focuses on wind power equipment manufacturing and is expected to create 100,000 jobs.

In the field of intelligent manufacturing, Singapore has built a “Future Factory” demonstration zone to promote 5G+ industrial Internet applications, and the penetration rate of intelligent manufacturing has reached 65%. The Johor Intelligent Manufacturing Park in Malaysia has introduced German Industry 4.0 standards and focused on the development of robots and automation equipment. Thailand’s EEC Intelligent Manufacturing Industrial Park introduces Japan’s precision manufacturing industry chain, with an investment of 30 billion baht.

In terms of digital economy, the Jakarta Digital Special Economic Zone in Indonesia focuses on the development of e-commerce and financial technology, and has attracted investment from Ant Group and others. Singapore builds digital trade corridors to promote cross-border data flow. The Malaysia Digital Free Trade Zone focuses on the development of cross-border e-commerce and cloud computing services. Thailand’s EEC Digital Industrial Park focuses on the development of data centers and cloud computing infrastructure.

5.2 Industry chain collaboration

In terms of upstream and downstream supporting, Singapore has developed an “industrial ecosystem” model, with large enterprises as the core to drive the gathering of supporting enterprises. For example, the local supporting rate of the semiconductor industry chain has reached 60%. Thailand’s EEC Automobile Industrial Park has 1,800 spare parts companies, forming a complete industrial system. There are more than 400 local supporting companies in Penang Electronics Industrial Park, Malaysia, covering testing, packaging and other aspects.

In terms of supply chain integration, countries are actively deploying regional supply chain nodes. Singapore is building a “supply chain city” to integrate port, airport and railway logistics. Kuantan Port Industrial Park in Malaysia has created a new supply chain fulcrum that can radiate to the Indonesian and Philippine markets. Thailand EEC builds a regional logistics network through three major deep-water ports.

In terms of R&D innovation network layout, all countries are increasing investment in innovation infrastructure. Singapore took the lead in establishing 16 future industry innovation centers and invested S$10 billion to support industry-university-research cooperation, focusing on areas such as biomedicine and artificial intelligence. India, relying on its IT industry advantages, has built five innovation corridors in Bangalore, Hyderabad and other places to promote the development of cutting-edge technologies such as 5G communications and artificial intelligence through policy support and talent introduction. Malaysia has established 10 national key laboratories to work with multinational companies to carry out technological research and promote the transformation and upgrading of traditional industries. Thailand EEC has specially set up an innovation research and development fund to support technological upgrading of enterprises and create a regional innovation highland. Indonesia is focusing on building four scientific and technological innovation centers to promote the industrialization of scientific research results and enhance industrial competitiveness.

The market radiation scope shows a diversified development trend. Relying on its geographical advantages, Singapore effectively radiates the 660 million population market of the ten ASEAN countries and connects the world’s major economies through the free trade agreement network. India relies on its huge domestic market and South Asian regional cooperation to cover a consumer market of nearly 1.8 billion people. Malaysia actively connects with the Chinese market through the “Look East Policy” and is deeply involved in the “Belt and Road” construction. Thailand EEC has become an important node connecting China and ASEAN, driving the coordinated development of neighboring countries. Indonesia makes full use of its domestic market advantages of 270 million people and radiates to neighboring countries through regional cooperation.

Based on the current industrial development trends, it is recommended that investors give priority to emerging industries supported by various countries in industry selection, especially areas with industrial cluster effects. When selecting a location, factors such as the professional positioning of the industrial park, the degree of infrastructure improvement, the strength of policy support, and the scope of market radiation should be fully considered. In terms of investment methods, it is recommended to choose an appropriate entry method based on the project scale, consider cooperating with local enterprises, make full use of the support of various industrial funds, and adopt a step-by-step implementation strategy to reduce investment risks.

In terms of development path planning, it is recommended to focus on technology introduction in the early stage, gradually cultivate local R&D capabilities, and eventually create a regional innovation center and continuously expand market coverage. At the same time, special attention needs to be paid to changes in industrial policies in various countries, assessment of supply chain stability, strengthening intellectual property protection, ensuring sufficient operating capital reserves, and making talent training plans.

In the future, trends such as accelerated reconstruction of regional industrial chains, rapid growth of emerging industries, accelerated flow of innovative elements, accelerated digital transformation, and green development becoming mainstream will continue to deepen. It is recommended that enterprises seize the opportunities of the new round of industrial reform, choose the most suitable locations for industrial layout, and achieve sustainable development through innovation-driven and green transformation. At the same time, efforts should be made to establish a flexible supply chain system, improve risk response capabilities, and gain development opportunities in the process of regional economic integration.

Enterprise investment decision-making guide

6.1 Key factors in park selection

The matching degree of industrial positioning is the primary consideration factor for enterprises to choose investment parks. Take the Singapore Jurong Innovation Zone as an example. The park focuses on the development of emerging industries such as biomedicine and digital technology. In the past three years, the average fit between the companies entering the park and the park’s industries has reached more than 85%. When selecting a location, enterprises should conduct an in-depth analysis of the industrial planning of the park and evaluate the existing industrial clusters to ensure that it is consistent with the enterprise’s development strategy. It is recommended that enterprises conduct on-site inspections of benchmark enterprises in the park to understand the upstream and downstream supporting conditions of the industrial chain to ensure that they can fully enjoy the cluster effect.

Talent supply is a key factor supporting the sustainable development of enterprises. Take the Bangalore Technology Park in India as an example. There are 15 colleges and universities within 10 kilometers of the park, which can provide more than 100,000 graduates of IT-related majors every year. Enterprises should focus on inspecting the distribution of educational resources around the park and assessing the professional talent pool. At the same time, we should pay attention to the talent policies of the park. For example, Singapore’s “Technology Talent Pass” program can facilitate the introduction of high-end talents for enterprises, and the Malaysian MSC area provides foreign talents with a “work pass” fast approval channel.

The strength of policy support directly affects the operating costs of enterprises. Thailand’s EEC provides corporate income tax reductions and exemptions for up to 13 years, and provides a 150% cost deduction for R&D investments in key industries. The Indonesian Special Administrative Region provides tariff reductions and exemptions for imported equipment, and Singapore provides up to 70% cost subsidies for innovative activities of enterprises in the park. Enterprises need to comprehensively sort out various preferential policies in the park, measure the actual impact of policy dividends on corporate finance, and select locations with the best policy support.

The completeness of supporting services is related to the operational efficiency of the enterprise. A high-quality park should have a “one-stop” service center that provides comprehensive services such as industrial and commercial registration, personnel and social security, and intellectual property rights. For example, Kuantan Industrial Park in Malaysia has established a 24-hour customs clearance service, equipped with five-star standard apartments and international schools, which greatly facilitates the operations of foreign-funded enterprises. When evaluating, enterprises should pay attention to the level of park infrastructure, including hardware facilities such as transportation, communications, and supply chain services, as well as soft supporting facilities such as business and living.

The cost-benefit balance requires comprehensive calculations. In addition to considering basic costs such as land and labor, operating costs such as logistics, energy, and environmental protection must also be evaluated. Taking the Bac Ninh Industrial Park in Vietnam as an example, although labor costs are only 1/5 of those in Singapore, logistics costs are high and environmental protection expenditures are rising year by year. Enterprises need to establish a complete cost-benefit model for analysis. It is recommended that enterprises make financial forecasts for 5-10 years and fully consider various cost increase factors.

6.2 Talent strategic planning

Local recruitment strategies need to be tailored to local conditions. When deploying in emerging markets, we can establish industry-university-research cooperation with well-known local universities to lock in high-quality students in advance. For example, Intel has set up a “talent program” in Malaysia, which selects 200 outstanding students from science and engineering colleges for targeted training every year. Enterprises can use professional recruitment platforms such as LinkedIn to build talent pools and connect mid-to-high-end talents through local headhunting companies. It is also recommended to set up internship projects to lay a solid foundation for subsequent talent reserves.

The introduction of international talents requires innovative methods. It can attract high-end overseas talents through the “Global Partner Plan” and provide long-term incentive mechanisms such as equity incentives. Utilize overseas Chinese community networks to introduce experts in specific fields. For example, Alibaba established an “Innovation Research Institute” in Singapore and successfully attracted a group of the world’s top AI talents by providing competitive salary packages and career platforms.

The design of the salary system should reflect regional characteristics. It is recommended to adopt a three-tier structure of “basic salary + performance bonus + special allowance”, in which the basic salary refers to the local market level, the performance bonus is linked to corporate performance and personal performance, and the special allowance takes into account regional factors such as expatriation subsidies and housing subsidies. We can learn from the “flexible benefit plan” commonly used by multinational companies in Singapore, allowing employees to choose their own benefit packages.

Training and development planning should establish a complete system. Including entry training, professional skills training, management ability training and other levels. An “online + offline” hybrid training model can be adopted to establish an internal learning platform within the enterprise. For example, Samsung invested in building a training center in Vietnam, developed a localized course system, and trained more than 20,000 employees every year. It is recommended that enterprises develop a “talent development map” to provide a clear path for employees’ career development.

Cultural integration management is an important issue in transnational operations. It is recommended to set up a dedicated cultural integration team and organize cross-cultural exchange activities regularly. For example, Toyota implements the “Localization+” strategy in Indonesia, fully respecting local cultural characteristics while maintaining the company’s core culture. We can enhance understanding by holding cultural festivals, family days and other activities, and establish a multilingual communication platform to eliminate cultural barriers. Corporate leaders should pay attention to cross-cultural management training and improve team inclusiveness.

When formulating talent strategies, enterprises must fully consider regional characteristics, adopt flexible and pragmatic solutions, and form systematic solutions in attracting, cultivating, and retaining talents. At the same time, we must pay close attention to changes in regional talent policies, adjust talent strategies in a timely manner, and provide talent guarantees for the sustainable development of enterprises. It is recommended that enterprises establish a talent strategy evaluation mechanism, regularly review and optimize talent management measures, and ensure that the talent strategy is implemented and effective.

Risk prevention, control and response

7.1 Policy risk prevention and control

Changes in industrial policies have become the primary risk faced by companies investing overseas. Recently, Southeast Asian countries have accelerated industrial structural adjustments. For example, Indonesia has increased export tariffs on raw ore and Malaysia has tightened environmental protection requirements for the palm oil industry. These policy adjustments directly affect business operations. It is recommended that enterprises establish a policy dynamic monitoring mechanism and keep abreast of policy trends in a timely manner by hiring local policy consultants and joining industry associations. At the same time, policy response plans should be formulated, such as arranging industrial upgrading in advance, optimizing product structure, etc., to enhance the ability to withstand policy changes.

Talent policy adjustments have shown a tightening trend in recent years. Singapore will raise the EP pass application threshold from September 2023, and Malaysia will set a cap on the proportion of foreign employees. Enterprises should establish a diversified talent reserve mechanism and increase efforts to cultivate local talents. Direct communication channels can be established with local governments to obtain talent policy support. For example, Huawei has established a “Digital Talent Training Program” in Singapore and received government policy support. It can apply for an additional 100 high-end talent visa quotas every year.

Changes in tax policies directly affect corporate profits. The OECD global lowest tax rate will be implemented in 2024, and many ASEAN countries will adjust their tax policies accordingly. It is recommended that enterprises study response plans in advance and consider optimizing tax burdens through legal means such as transfer pricing management and tax planning. At the same time, attention should be paid to new regulations in various countries to combat tax avoidance. For example, Thailand has strengthened supervision of related-party transactions, and companies need to establish a complete tax compliance system.

Restrictions on foreign investment access require special attention. India has revised its negative list for foreign investment and strengthened controls on data centers and other areas. Indonesia requires that local ownership of mineral deep processing projects exceed 51%. Enterprises can avoid entry barriers through various methods such as joint ventures and franchising, and consider adjusting their business structure when necessary. It is recommended to fully evaluate the access policy and design a flexible equity structure plan before investing.

6.2 Operational risk management

The risk of brain drain is intensifying, and regional talent competition is becoming increasingly fierce. Data shows that the annual talent loss rate in Southeast Asia’s IT industry exceeds 20%. It is recommended to implement a “talent retention plan”, including providing competitive salary packages, clear career development paths and equity incentives. For example, Tencent launched the “Talent Sharing Plan” in Singapore, which allows core talents to rotate and develop within the group, effectively reducing the brain drain rate.

The pressure of rising costs continues to increase. In 2023, the minimum wage in major Southeast Asian countries will increase by an average of 15%, and energy costs will increase by more than 30%. Enterprises should establish a dynamic cost management mechanism and control costs through technological innovation, process optimization, automation transformation and other means. We can learn from TSMC’s experience in Malaysia and adopt intelligent manufacturing systems to control labor costs within 8% of the total cost.

Cultural conflict management requires systematic responses. Surveys show that 40% of failed mergers and acquisitions by multinational companies are related to cultural conflicts. It is recommended to establish a cross-cultural management committee and conduct regular cultural integration training. For example, Panasonic implemented “Localized Management 3.0” in Indonesia, localizing 80% of management positions, significantly improving team cohesion.

Compliance risk prevention and control is increasingly important. Recently, various countries have strengthened supervision on data security, environmental standards, labor rights and other aspects. It is recommended to establish a comprehensive compliance management system, equip a full-time compliance team, and conduct regular compliance audits. For example, Microsoft has set up a compliance center in Singapore to uniformly manage compliance affairs in Southeast Asia and effectively reduce compliance risks.

6.3 Market risk management

Changes in the competitive landscape are accelerating, and new entrants are constantly emerging. Taking Vietnam’s electronics industry as an example, there have been more than 200 new foreign-invested companies in the past two years, and market competition has intensified. Enterprises should continue to strengthen their competitive advantages and maintain their market position through product innovation and service upgrades. It is recommended to establish a competitor monitoring system, regularly analyze market changes, and adjust competitive strategies in a timely manner.

The technology iteration cycle is shortened and the pressure for innovation is increasing. The technology update cycle in Southeast Asia’s digital economy has been shortened to 1-2 years. Enterprises need to increase investment in research and development and establish a technical early warning mechanism. Consideration can be given to quickly acquiring new technologies through technology mergers and acquisitions, strategic cooperation, etc. For example, Intel has set up an innovation center in Malaysia and invests more than US$200 million in R&D each year to maintain its technological leadership.

Supply chain stability faces challenges. In the context of the restructuring of the global supply chain, regional supply networks are constantly adjusted. Enterprises should establish a supply chain risk assessment system and develop diversified supply sources. We can learn from Apple’s experience and simultaneously develop suppliers in Vietnam, India and other places to diversify supply chain risks. At the same time, it is necessary to strengthen supplier management and establish strategic cooperative relationships.

Exchange rate fluctuations have a significant impact. In 2023, Southeast Asia’s major currencies will fluctuate by more than 10% against the US dollar. Enterprises can hedge exchange rate risks through financial instruments such as forward contracts and currency swaps. It is recommended to establish an exchange rate risk early warning mechanism, reasonably arrange the collection and payment deadlines, and adjust pricing strategies when necessary. For example, Toyota adopts a localized procurement strategy in Thailand to control the currency mismatch of cost and income within 20%.

To sum up, enterprises facing multiple risks and challenges in overseas investments need to establish a comprehensive risk management system and make adequate preparations. It is recommended to establish a special risk management committee to regularly assess various risks and adjust response strategies in a timely manner. At the same time, attention should be paid to introducing professional institutions to assist in risk management and transferring some risks through insurance, financial derivatives and other instruments. The most important thing is to maintain strategic focus, seize development opportunities amid risks and opportunities, and achieve sustainable growth.

Future Development Trends and Suggestions

8.1 New trends in industrial development

The direction of industrial upgrading shows the characteristics of intelligence, greenness and high-end. According to McKinsey’s 2024 forecast, the smart manufacturing market in the Asia-Pacific region will reach US$800 billion, with an annual growth rate of more than 25%. Countries have introduced supporting policies. For example, Singapore’s “Industry 4.0 Transformation Plan” provides subsidies of up to 70%, and Malaysia has launched the “Industrial Digital Transformation Fund” to support enterprise upgrades. Enterprises should seize opportunities for industrial upgrading and focus on high-growth fields such as intelligent equipment, new energy, and biomedicine.

Technological innovation focuses on artificial intelligence, quantum computing, new energy and other fields. According to IDC, investment by Asia-Pacific companies in the AI ​​field will exceed US$30 billion by 2025. Singapore has established a S$10 billion “Frontier Technology Innovation Fund” to focus on supporting cutting-edge fields such as quantum computing and biotechnology. If enterprises want to increase investment in innovation, they can integrate innovation resources through industry-university-research cooperation, innovation alliances, etc. It is recommended to establish an innovation incubation fund to support internal innovation projects.

The transformation and upgrading of the park is accelerating. The transformation of traditional industrial parks into science and technology innovation parks emphasizes the integrated development of industry and city. For example, Cyberjaya, Malaysia has built a “Smart Technology City” that integrates new technologies such as 5G and the Internet of Things to provide smart office and smart life solutions. When selecting a location, enterprises should pay attention to the innovation ecology of the park and evaluate the potential for upgrading supporting services. Can participate in park transformation planning and strive for customized service support.

Regional coordinated development has become a new trend. ASEAN has accelerated regional integration, and the “Regional Comprehensive Economic Partnership Agreement” (RCEP) has deepened regional cooperation. Enterprises can take advantage of regional synergy to optimize industrial layout. For example, Samsung has set up a production base in Vietnam and deployed an R&D center in Singapore, forming a regional coordinated development pattern. It is recommended that enterprises formulate regional integration strategies and make full use of the comparative advantages of various regions.

8.2 New pattern of talent development

The hybrid office model has become mainstream. The survey shows that 74% of Asia-Pacific companies plan to maintain hybrid offices in the long term. Enterprises need to establish a flexible office system and support remote collaboration tools. For example, Google launched the “Work From Anywhere+” plan in Singapore, allowing employees to choose their own office location 60 days a year. It is recommended that enterprises upgrade office facilities, improve remote management mechanisms, and ensure hybrid office efficiency.

Changes in skills demand are accelerating. The World Economic Forum predicts that 40% of the world’s core skills will change by 2025. Digital skills, cross-cultural management capabilities, and innovative thinking become key. Enterprises should reconstruct the training system and increase investment in new skills training. For example, Microsoft launched the “Digital Skills Enhancement Plan” in Singapore, investing S$20 million every year to upgrade employee skills.

The flow of talents presents new characteristics. In the post-epidemic era, remote work has brought about a new model of cross-border talent mobility. Enterprises need to adapt to the “borderless talent market” and innovate recruitment methods. For example, Deloitte launched a “virtual talent pool” plan in Southeast Asia to break through geographical restrictions and recruit professional talents. It is recommended that enterprises establish a global talent database and flexibly allocate talent resources.

Innovation in the salary system continues to deepen. The traditional fixed salary model is changing to diversified incentives. Enterprises can adopt a compound model of “basic salary + project bonus + equity incentive”. For example, Ant Group implemented a “flexible salary plan” in Singapore, linking 40% of salary to project results, effectively increasing team enthusiasm.

8.3 Corporate response strategies

Flexible employment models are increasingly popular. The gig economy is developing rapidly, and professionals tend to work freelance. Enterprises can adopt a combination model of “core employees + project outsourcing + flexible employment”. For example, DBS Bank launched a “Talent Sharing Platform” to realize cross-departmental deployment of professional talents. It is recommended to establish a flexible employment management system and standardize the project outsourcing process.

Digital transformation is imperative. IDC predicts that digital transformation spending in Asia Pacific will reach US$675 billion in 2025. Enterprises should speed up their digital layout and focus on promoting smart office, digital marketing, smart manufacturing and other projects. For example, Toyota invested US$2 billion in building a “digital factory” in Thailand to increase production efficiency by 30%. It is recommended to develop a digital roadmap and implement transformation projects step by step.

Localization strategies have become more important. Deeply exploring the local market has become the key to success, and companies need to strengthen the integration of local resources. For example, Walmart implemented the “Farmer-Supermarket Docking” program in India and established a direct supply system with local farmers, significantly improving market competitiveness. It is recommended to increase efforts in cultivating local talents and increase the proportion of localized management teams.

Talent reserve planning requires forward-looking planning. The gap in high-skilled talent in the Asia-Pacific region is expected to reach 47 million in the next five years. Enterprises should establish a long-term talent reserve mechanism, including school-enterprise cooperation, professional training, management trainee programs, etc. For example, NVIDIA has cooperated with Singapore Institute of Technology to establish an “AI Talent Training Base” to train 500 AI professionals every year.

To sum up, enterprises must accurately grasp the new trends in industry and talent development and proactively adapt to the requirements of change. It is recommended to establish a dedicated strategic planning team to regularly evaluate development trends and adjust strategic direction in a timely manner. At the same time, we must increase investment in innovation, cultivate new competitive advantages, and achieve sustainable development. It is particularly important to establish an agile organizational system, improve rapid response capabilities, and seize development opportunities amid changes.

For future development, companies should also focus on establishing an industry trend research mechanism and regularly publish industry outlook reports

; Establish an innovation fund to support employee innovation and entrepreneurship projects ; improve the talent evaluation system and establish a dynamic talent map ; promote organizational changes and establish a flat management structure ; strengthen risk management and enhance organizational resilience . Through systematic layout and continuous improvement, companies can maintain competitive advantages in a rapidly changing environment and achieve long-term sustainable development.