Infocomm Singapore explores opportunities in Central and Eastern Europe

Mr Pek, Chairman of SiTF, standing right of PM Lee Hsien Loong during a group photograph

The Infocomm Development Authority of Singapore (IDA), together with the Singapore Business Federation, led a business delegation to Hungary and Poland last month as part of efforts to help local infocomm companies explore e-government opportunities in Central and Eastern Europe. The business trip took place in conjunction with Prime Minister Lee Hsien Loong’s official visit to Hungary on 8-10 October 2007.

Members of the infocomm delegation included CrimsonLogic, Singapore Technologies Electronics, Stratech Systems and the Singapore Infocomm Technology Federation.

Commenting on the infocomm opportunities in the two countries, Ms Tham Ai Chyn, Assistant Chief Executive, Industry and Cluster Development, IDA, noted that Poland and Hungary had joined the European Union (EU) in 2004 and were aligning themselves to the EU’s i2010, a strategic policy framework which lays out broad policy guidelines for the information society and the media. “In the two country's transition towards a vibrant free market; opportunities exist for Singapore companies, particularly in areas like IT solutions in e-government, intelligent transport systems, hospitality management services and possibly environmental services and logistics, she said.

Hungary is one of Singapore's largest trading partners among the Central European countries and the country’s infocomm and telecommunications (ICT) industry has considerable backing from the government. Last year, the Hungarian government spent some €19.5 million ($40.56 million) on the development of IT. A further investment of €546 million is planned over the next seven years from EU funds.

During last month’s visit, a Memorandum of Understanding was signed between ST Electronics and Hungary’s Albacomp Computers Company to jointly pursue and implement infrastructure projects for the public and private sectors in the country. Albacomp is one of the five largest IT companies in Hungary. The MOU was signed in Budapest during the Singapore-Hungary Business Forum, witnessed by Prime Minister Lee and Hungary's Minister of Economy and Transport, Mr Janos Koka. As a start, both companies have identified and agreed to pursue two public projects in the areas of mass transit and e-Government, and are expecting potential market opportunities in these areas with value worth more than US$100m in the near term. The Singapore delegation also visited Poland, where €700 million is planned to be spent on developing IT resources within public administrations offices between 2007 and 2013. Speaking at the Poland-Singapore Business Forum during the visit, Mr. S. Iswaran, Minister of State for the Singapore Ministry of Trade and Industry, said he saw great scope for cooperation in ICT, especially in the e-Government space. “Poland is the largest ICT market in Central and Eastern Europe, and its ICT industry contributed a significant 5.5 per cent to GDP in 2005.Prospects for the Polish ICT industry remain bright due to fresh demand, especially in e-Government,” he said.

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“The trip to Europe is really interesting for me both as a Siemens staff, and also as the Chairman of SiTF. The projects that are available there are typically huge by Singapore standards. With the EU backing in terms of funding and policies, our companies can replicate a solution to the EU countries with some minor changes, but again there is tremendous synergy. What is key to success is that of determination, and stamina. Our members should understand that the countries are much bigger compared to Singapore which is a city, state, and country at the same time. Contrast this to the European countries, you will realise that the customer knowledge network increases exponentially. However, if we can navigate this like some of our other companies, there is a tremendous pot of gold for us. I do hope that we have more companies that are keen to be in Europe, and I wish them all success.”

-Mr Pek Yew Chai
Chairman, SiTF