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Facing Pressure at Home, Chinese Tech Giants Expand in Singapore

Agence France-Presse

   Chinese tech giants are expanding in Singapore as they face a crackdown
   at home and growing pressure in other key markets--but they may
   struggle to find talent in the city-state.

   Messaging-and-gaming behemoth Tencent is opening a hub
   andTikTokownerByteDanceis on a hiring spree afterestablishinga
   regionalheadquarters, while e-commerce giant Alibaba is investing in
   property and recruiting.

   The tech firms are shifting their focus to booming Southeast Asian
   markets as authorities tighten the screws at home amid concerns about
   the platforms'growing power.

   China's regulators have launched a blitz on the sector, hitting several
   firms with heavy fines, and threatening to slice up massive companies
   whose reach now extends deep into the daily lives of ordinary Chinese.

   Meanwhile, festering tensions between Washington and Beijing after an
   assault on Chinese tech titans during Donald Trump's presidency make
   the United States an unattractive prospect, and problems abound
   elsewhere.

   "Chinese tech companies are facing regulatory pressures and sanctions
   from governments in other countries, notably the U.S.but also other
   nations such as India,"Rajiv Biswas, Asia Pacific chief economist
   atIHSMarkit, told AFP.

   India has banned aswatheof Chinese apps since a border clash last year,
   while the European Union and other Western powers recently imposed
   sanctions over China's treatment of the Muslim Uyghur minority,
   prompting retaliatory sanctions.

   But Singapore, a prosperous financial hub, maintains good ties with
   Beijing and the West, and tech firms have come to view it as a safe bet
   to expand their operations without upsetting either side.

   In the current climate of geopolitical uncertainty"Singapore is
   considered as a more neutral country,"ChenGuoli, professor of strategy
   at the Singapore campus of business school INSEAD, told AFP.

   Hiring spree

   In addition, long-running turmoil in traditional rival Hong Kong may
   have dimmedthe territory'sappeal, although observers stress other
   factors are likely more important.

   The influx of Chinese cash will be welcome in Singapore, whose economy
   has been hammered by the coronavirus and which is seeking to build
   itself up as a tech center.

   It is already home to major offices of U.S.tech titans Facebook, Google
   and Twitter, whileByteDancerecently moved into bigger offices in the
   financialdistrict andhas launched a hiring drive.

   Between September and February, a third ofByteDance'sjob postings were
   in Singapore, more than twice the ads it placed in China, with a focus
   on hiringspecializedengineers, said AjayThalluri, an analyst with data
   and analytics firmGlobalData.

   Meanwhile, Alibaba last year bought a 50 percent stake in an office
   tower, where its e-commerce unit Lazada is the main tenant, while its
   affiliate, fintech giant Ant Group, won alicenseto operate a wholesale
   digital bank in the city-state.

   Alibaba"is building teams in Singapore with significant key senior and
   mid-level job postings related to talent acquisition, product
   management, and legal compliance,"saidThalluri.

   The e-commerce firm, co-founded by Jack Ma, has come under fierce
   pressure in China, with authorities pulling the plug on Ant's
   recordinitial public offering in November.

   Talent crunch

   ByteDanceand Tencent, which announced its Singapore expansion plans in
   September, say they are primarily focused on growing their businesses
   in Southeast Asia, a booming region of 650 million, rather than
   avoiding tensions elsewhere.

   By building up their Singapore presence, the tech giants are hedging
   their bets in case frictions with the West hit a new nadir, analysts
   say.

   Chen of INSEAD said Chinese companies needed a"plan B"in case they had
   to separate their global and Chinese operations, in which case
   Singapore could become their international hub.

   However, a major challenge in expanding in the city, with a population
   of just 5.7 million, is recruiting workers with the correct skills.

   "Technology is developing and accelerating at a speed that far
   surpasses the supply of talent needed to scale,"said Daljit Sall,
   senior director for information technology at the Singapore office of
   global recruitment firm Randstad.

   Singapore is trying to attract overseas talent, although that may cause
   unease in a country where there are already concerns about the large
   foreign population, while schools are offering courses to prepare
   youngsters for tech jobs.

   Nevertheless,"therestill remainsan urgent need to fill these skills
   gaps now,"Sall said.

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