Chapter 473: Increased Investment in Singapore

On December 12, Yang Wendong, Wei Zetao, Zhou Haoran, Zheng Zhijie, Wang Zhiqun and other senior executives of Changxing Group chartered a plane to Singapore.

Director Li, who had been in contact with Yang Wendong before, also brought a large number of people from other departments to greet Yang Wendong and others at the airport, and then they set off for the relevant departments together.

"Director Li," Yang Wendong said politely, "On the way here today, I saw that Singapore's development achievements are much better than this time last year."

"Haha, that's also the result of the joint efforts of countless Singaporean citizens." Director Li said with a smile: "We should also thank foreign entrepreneurs like Mr. Yang for bringing a large number of jobs to Singapore."

If it is an ordinary investor, even if he is worth tens of millions of dollars, in Director Li's mind, he cannot compare with Yang Wendong. Although the other party's industry is low-end, it can really create a large number of jobs.

Although the salary is not very high and is much lower than other industries, it is very useful in maintaining social stability. Otherwise, with so many young people in their 20s and 30s unemployed, it is hard to imagine what they can do. Simple industries can also directly absorb them and they can start work in half a day. It is really suitable for Singapore today.

Yang Wendong also said: "I am also happy that I can promote employment for so many Chinese people. We are all from the same ethnic group, and it is naturally best for us to help each other."

Although capital does not discriminate between countries or races and puts profit first, it is beneficial to be able to help your compatriots. At the same time, when they grow in size, they may be able to give back to you.

Moreover, the Chinese themselves are the most hardworking and diligent people in the world. The fact that the mainland was able to develop into the world's number one industrial country in the past was definitely not just due to its population. If having more people really meant being useful, then India, which had maintained very good relations with Europe, the United States and the Soviet Union since the 50s, would have risen long ago.

Director Li also said: "Mr. Yang, since we get along so well, I also know that Hong Kong is not suitable for investment now. Why don't you consider building some more factories of Changxing Industry in Singapore? I will definitely give you the highest preferential policy."

"What kind of benefits?" Yang Wendong asked calmly, "In Hong Kong, many taxes are the lowest in the world."

Hong Kong was able to develop into what it was in the future, not only because it is the only window between the East and the West, but also because of its very low tax rate, coupled with the large number of highly educated people from the Mainland, which enabled it to achieve outstanding results in the next few decades.

Singapore’s tax rates are not high, but they are still higher than Hong Kong.

"We can also talk about taxation, but I'll tell you the truth, there will be preferential treatment in the first few years at most, and it's impossible to maintain Hong Kong's data forever. The tax rate of each region is stipulated by law and needs to be maintained." Director Li said: "But in other aspects, we will have better policies than Hong Kong."

“Okay, since we can talk about it, let’s wait until all the details are agreed upon. If there are no problems, I am also happy to invest in Singapore.” Yang Wendong agreed.

He also wants to invest here and then gain other benefits, just like early Hong Kong, which used industry to hoard land, and when the time is right, it can move to the mainland and acquire huge vacant land;

Although it is industrial in nature, as long as the land is owned by the owner, it will still be a huge profit even if it is "converted from industrial to commercial" at the original price, because such large-scale land will not be available for purchase with money in some period of time in the future.

"Okay." Director Li smiled and said, "Mr. Yang, I know that your business in Hong Kong is not just Changxing Industrial. You also have a large number of beverage, food and electronics factories. These industries are also very welcome in Singapore."

"Food and beverages are easy to talk about. We can discuss everything." Yang Wendong asked, "I wonder what support policies Singapore will have for the development of the electronics industry in the future?"

It’s not that he wants to move food and beverages to Singapore, but these two types of products are very sensitive to ocean freight rates because of their high weight and low unit price.

If we can have another large-scale production base in Singapore, it will definitely have a huge cost advantage in developing the local market in Southeast Asia, especially since Southeast Asia itself is also rich in grain and sugar, which is more in line with the business strategy. As for Hong Kong, it is enough to continue to maintain the Japanese, Taiwanese and American markets for now, and then enter the mainland in the future. This is also the reason why many companies invest in different factories around the world.

But Yang Wendong plans to keep the electronics industry in Hong Kong. This is part of the industry he left for Hong Kong in the future. Although he doesn’t know whether he can keep it after the return, he at least wants to give it a try, after all, he is a Hong Konger.

However, Hong Kong's electronic foundation is too poor, and university education does not provide much support in this area, far less than Taiwan. Fortunately, Hong Kong can poach people from Taiwan, and there has not been any big problem in the past decade or so. However, if Singapore also has very high-quality electronic industry support policies and talent training policies, then he would not mind investing some in Singapore, or at least a research base.

Director Li said: "The government has not yet introduced any support policies for the electronics industry, because the current situation in Singapore is almost zero for the electronics industry. At the end of last year, we specially sent more than 0 people to Los Angeles, USA for a two-year university study;
It is precisely because there is no such thing that I hope Mr. Yang can invest in this field in Singapore. In addition, I have also negotiated with companies such as IBM, HP, and Philips, and they may also invest in Singapore. "

“It is indeed great that so many large electronics companies can settle in Singapore,” Yang Wendong said with a smile.

Historically, in the late 60s, Singapore did convince many international electronics companies to invest in Singapore. It must be said that Singapore is very capable and there are reasons why it can develop so fast.

It’s just a pity that in Hong Kong, the British Hong Kong government did nothing and just passively waited for foreign investment. Otherwise, these opportunities would not have come to Singapore. If the policies were similar, foreign capital would definitely choose Hong Kong, which has a base.

Director Li went on to say: "Any industry that is concentrated together will have greater advantages in scale. In this regard, Singapore's future performance will definitely be among the best in Asia." "In that case, I will ask my Honor Electronics team to visit Singapore and see what is suitable to invest in." Yang Wendong finally agreed.

Bringing Honor Electronics to Singapore and hoarding land is secondary. It is more important to develop itself by leveraging Singapore's development in the electronics industry, especially in terms of technology and talent. Honor Electronics will inevitably be short of these aspects in the future. On the contrary, it is the various creative ideas and future development directions that are in short supply in those big companies. As a time traveler, Yang Wendong is not worried at all.

But in the field of high technology, creativity alone is not enough, you also need matching technology.

"That's good." Director Li said with a smile.

Yang Wendong added: "Mr. Li, since Singapore attaches so much importance to the electronics industry, I have a suggestion. We should also add more electronics industry disciplines in universities in Singapore. Only with enough local talents can we develop this industry. The biggest credit for the success of Silicon Valley actually goes to Stanford University."

"That makes sense. I will also pay attention to this aspect." Director Li seemed thoughtful after listening.

"That's good." Yang Wendong nodded.

In Hong Kong, he has also tried his best to persuade the Hong Kong government to increase the number of students admitted to the electronic departments of universities. However, it is only one city after all, and Hong Kong has not attached much importance to the electronic industry in the past, so there is a limit.
Neighboring Taiwan attaches great importance to it and has many talents, but the relationship between the two sides means that it can only poach a small number of people. If it poaches too much, it will not be good if it is found on its doorstep. Therefore, if Singapore attaches importance to the electronics industry and cultivates enough Chinese, it will be good for itself. It will not be a problem to poach people to Hong Kong or build a R&D center and production base in Singapore.

After consulting with the Singapore government, Yang Wendong came to the newly opened Changxing Plaza. After walking around, he asked, "Old Zheng, are the businesses here similar to those in Hong Kong?"

"Yes, they are basically some international brand clothing." Zheng Zhijie replied: "As for food, we didn't look for those from Hong Kong, but they are all Chinese, and many of the tastes are similar."

"Okay, we will build good relationships with these brands in the future. When we expand into other places and build plazas in the future, we will also need to cooperate with them again." Yang Wendong nodded and said, "We also need to learn more during the operation in Singapore. Our future expansion will only be to Southeast Asia."

The best time to invest in a commercial plaza is during the period of rapid local economic development, because if other places become prosperous, you cannot afford to invest, and if the economy is too bad, a plaza cannot be sustained. In its past life, Wanda rose to prominence by taking advantage of the mainland's golden decades of development and became the country's largest chain store brand.

"Okay." Zheng Zhijie agreed.

After watching for a while, everyone came to the roof and saw the Four Seasons Hotel building under construction in front of them.

Zheng Zhijie introduced: "Mr. Yang, the Four Seasons Hotel Tower in Singapore is much larger in area and number of hotels than Hong Kong. After it is completed, it will become one of Singapore's landmark buildings."

Yang Wendong nodded and said, "It does look better. These two properties are our first large-scale investment in Southeast Asia. Our future investment in Southeast Asia will depend on them.

If they operate well, we can use this data to convince the banks here to increase financing to help us expand; otherwise, if they want our own funds, I will never agree. "

"I understand, Mr. Yang." Zheng Zhijie replied.

As a professional real estate businessman, he naturally understands the reason behind this. Large real estate companies or hotels are able to expand rapidly, and often they rely on banks.

Yang Wendong added: "In addition to these two businesses, Singapore also needs to use bank loans as much as possible to purchase street shops, large areas of land or old buildings, just like our investment in Hong Kong around the 60s."

Although he will be buying bottoms in Hong Kong in half a year, he will try his best to use bank funds in both Hong Kong and Singapore. Only in this way can he maximize his profits.

"Okay." Zheng Zhijie said with a smile: "I have already done a lot of research on these properties."

"Okay, that's it." Yang Wendong said, "As for real estate, just focus on hoarding land and managing these two industries. Wei Zetao will continue to increase investment and build factories here. You just need to cooperate with him and ask the Singapore government for some other benefits."

In fact, if he just wanted to hoard land, then there was no need for him to invest in Four Seasons Hotel and Changxing Plaza. After all, such projects are very expensive, and it is more cost-effective to use the money to buy land.

But everything has a limit. If a sovereign country desperately buys land and waits for appreciation, it will get into trouble sooner or later. Even in Hong Kong, it will not always do so, so it is necessary to appropriately build industries that are helpful to the economy.

Moreover, if these two industries develop well in Singapore, it will also provide experience for their team, making it easier for them to enter other countries in the future.

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(End of this chapter)

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