Case Study : Hi Tech Industy In Singapore Essay, Research Paper

Company:

Hitachi Component

parts are assembled to produce electronic and electrical consumer goods-

television sets, refrigerators, washing machines, radio cassette recorders,

mini-compos, vacuum cleaners, CD-players and other computer components.LOCATION The company is located in Bedok

Industrial Estate. There is adequate flat land to build a factory in this 6.4

ha industrial estate.FACTORS

AFFECTING THE INDUSTRY 1.

Raw Materials Raw

materials are either manufactured within the factory( eg motors and plastic

parts) or obtained from supportive factories( eg colour picture tubes from a

factory in Jurong) or imported. 2.

Power Electricity,

an essential input in this industry, is easily available in this industrial

estate which has all the necessary infrastructure for the development of light

and clean industries. 3.

Capital Hitachi,

a multinational company with its headquarter in Japan, provided the capital to

start this branch factory in Singapore. 4.

Labour The

company employs about 900 workers. They come from Bedok New Town and other

nearby new towns. The labour cost accounts for about 10% of the total

production cost as against about 25% in Japan. This is 1 reason why the factory

is set up outside Japan. 5.

Transport The

industrial estate is linked to all parts of Singapore, including the port, by

an efficient road system. For example, it is linked to the Jurong Industrial

Estate by the Pan Island Expressway and the container port in Tanjong Pagar by

the East Coast Parkway. The

component parts are small and compact, so it is not too costly to transport

them from the port or from the supportive factories in Singapore to the

factory. Being

a light industry, it is also not too costly to transport its products to the

container port for export. 6.

Markets Every

year, the company sells about S$200 million worth of electrical and electronic

goods. 95% of the products are exported to more than 80 countries such as

Canada, the USA, the UK, Germany and France. The products are easily exported

through the container port in Singapore. 7.

Government support When

the company started, it was granted pioneer status for 5 years during which was

exempted from paying tax on its profits.