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.