In the last decade, the number of German companies with a presence in Singapore has increased by almost 300%. Today, there are more than 1,300 German companies in Singapore. This is projected to increase further with the conclusion of the Singapore-European Union negotiations on free trade and the growing recognition of South-East Asia as the third engine for growth, next to China and India. The Association of South-East Asian Nations (ASEAN) is expected to be an important growth pillar of the global economy, with manufacturing contributing 20 to 35% of value-added of the GDP of ASEAN economies. This will result in demand of technology and products for the more than 600 million population across South-East Asia.

In order to seize the business opportunities in a fast-growing ASEAN, many German companies have chosen Singapore as their first base in South-East Asia. The need for a trusted, reliable and connected location to manage their regional operations is critical, in order to successfully navigate a diverse Asia with varying regulations, cultures and business conditions.

Shared Values

Among the ten ASEAN member states, Singapore stands out as a trusted and sophisticated business hub for German companies, especially the mid-sized German companies - or Mittelstand - to expand into high-growth markets like China, India and rest of South-East Asia. German companies benefit from Singapore's stable political environment, highly skilled workforce and sophisticated infrastructure. The relationship that Singapore and Germany share is one built on mutual trust and respect. Both countries are seen as stable economies that value a pragmatic, partnership-oriented and innovative approach in doing business. It is no surprise that Germany is Singapore's largest trading partner in the European Union, while Singapore is Germany's largest trading partner in South-East Asia.

Made for Mittelstand

Alongside multinational corporations, globally leading mid-sized German enterprises or German Mittelstand Champions have also anchored manufacturing and R&D activities in Singapore. These German Mittelstand Champions view Singapore as a high-value manufacturing and R&D hub. Renowned research institutes and universities, a diverse pool of international talent and strong IP protection create a conducive R&D ecosystem for successful innovation in Asia. The examples on the right-hand page display German Mittelstand companies that have invested in Singapore:

Priming for Growth

As German multinational companies and Mittelstand Champions grow their leadership positions globally and capitalize on the opportunities in South-East Asia, Singapore offers a business and innovation-friendly environment for these German companies. Strategically located in the heart of the rising economies in Asia, Singapore is the ideal partner for German companies to achieve long-term success in the region.

Five Leading Mid-Sized German Enterprises in Singapore

Dorma established its first overseas plant in Singapore in 1979. Singapore now serves as its regional headquarters for the Far East (ASEAN, Korea, Taiwan, Japan), and a key manufacturing node, supplying close to 50% of global output for particular products.

Trumpf, founded in 1923, stands for high technology in the areas of machine tools, electronics, laser and medical technology. The family-owned company has been active in Singapore since 1991.

Rohde & Schwarz has been on site in Singapore since 1997. What began as a small presence has become a second company headquarters with sales, research & development and production. For the mid-sized Munich-based electronics company, in family hands since 1993, long-term success counts and that's what it has found in Singapore. In the next five years the Research & Development department is expected to hire 100 new employees.

Bauer, an SME founded in Bavaria in 1790, is a global market leader in construction equipment for international foundation engineering. The company has been writing its success story since 1991 in Singapore, where it maintains the headquarters of the Bauer Far East Group and sales office for construction equipment.

Thirty-five years ago, the Mannheim-based SME, Pepperl+Fuchs, ventured into the Far East. Today, the automation specialist has deep roots in Singapore, which is home to production, sales and Research & Development.
"When a company wants to set up business in Asia, the first step via Singapore is advantageous," says Jürgen Seitz, Director of Production, Pepperl+Fuchs in Singapore.