INTERNATIONAL PURCHASING OFFICES (Setting up of)

Encik Zulkifli bin Mohammed asked the Acting Minister for Trade and Industry how many International Purchasing Offices (IPOs) were set up in Singapore in 1984 and 1985, and what steps the government will take to encourage more IPOs to be set up in Singapore.

The Minister of State for Trade and Industry (Dr Lee Boon Yang) (for the Acting Minister for Trade and Industry): Mr Speaker, Sir, many foreign trading companies export and import from Singapore. But international purchasing offices, or IPOs, are a special category. IPOs are offices of multinational companies, large chain stores and professional purchasing agents, established here for the sole purpose of buying from Singapore and the region to meet their world-wide or headquarters' needs. They also include foreign companies which, in addition to their manufacturing and sales activities in Singapore, source for their headquarters from Singapore.

There are currently about 43 such IPOs in Singapore, 10 of which were set up in 1984 and three in 1985. Their purchases range from electronic components to metal and plastic parts, garments and general merchandise.

The Trade Development Board (TDB) has been actively attracting such IPOs to Singapore. Through its overseas offices, TDB will continue to identify large companies and buying organizations in the US, Europe, Japan, India and China. TDB will send missions overseas to demonstrate the range of goods and services available in Singapore. Potential IPOs will be encouraged to visit Singapore and introduced to local suppliers. TDB will also organize regular workshops where IPOs can explore business opportunities with local companies.