Dell's Singapore shift shows eastern promise

THE YEAR started with some interesting happenings on this far (from INQ HQ, that is) side of the world.

Firstly, Dell anounced it would split its worldwide HQ between the US and Singapore. Then, the rumours were confirmed: the main Intel Developer Forum spring event won't be in San Francisco this time - and no, luckily not in San Jose either. It will be held in ... Beijing.

Wasn't it tough enough that the famous old Comdex, the global mecca of IT industry movers and shakers, was infamously retired by Computex, an once-small show from an equally small island, Taiwan? Talking of Comdex, its founder, Sands' chairman Sheldon G. Adelson, who created the electronics trade show in 1979, is now busy building the US$3.2 billion Marina Bay Sands in Singapore - one of the world's poshest and most expensive integrated resorts, with expo space alone sufficient to hold yet another Computex-scale show, by the way. It will be just a few miles away from Dell's new worldwide HQ.

Talking about Dell, the official line that the messy 'give shares to my subsidiary to take control of me' transaction is done "because Singapore will be a global support hub for its supply chain and its manufacturing and will provide various financial, operational and tax efficiencies".

While anything is possible, I doubt that the move was specifically due to the slew of natural catastrophes / evil dictatorships / dollar collapses supposedly awaiting the US. Let's get real, Singapore tax rates are roughly one-third those in the USA, and, if you happen to be a resident receiving your pay from overseas, well you pay zero tax - even if your pay is a million bucks a month.

The city is as developed (if not more so) than anything in Western hemisphere, good food is way cheaper, airline service is a century ahead, infrastructure is phenomenal, and, most importantly for tough corporate executive, the Ministry Of Sound is in the same block as a Crazy Horse outlet. Anyway for Dell, its huge regional manufacturing and support facility is just 400 miles away on the nearby island city of Penang - halfway between Singapore and Phuket, and its China facilities as just a four-hour budget flight away. The final stroke was the IDF - while I believe the Fall IDF will be back overlooking the Bay Bridge, the spring event's move to China is unprecedented. I'm just imagining the visa queues this time.

In summary, the times they are a-changing. Get ready for more of these movements over time, as Far East takes over - to be the primary production, design, marketing, sales and, yes, launch location for IT and many other industries. µ