Singapore - Brazil out to attract more Singapore firms

When it comes to Rio de Janeiro, football, beaches and samba spring to mind - but Brazil's capital of fun and parties also counts Singapore as one of its top 10 trade partners in the world.

Already home to firms such as Keppel Corp and Sembcorp Marine in the area of shipbuilding, Rio is aiming for much more, said the state's chief adviser for foreign trade and investments, Mr Luiz Carlos de Carvalho, during a visit here.

Speaking to The Straits Times on the sidelines of a seminar on investment opportunities in Brazil at the Grand Hyatt hotel yesterday, Mr de Carvalho said he had identified 58 foreign companies as likely candidates to invest in the state. Of these, "at least 10" are from Singapore in the oil and gas, or shipyard and shipbuilding industries.

The 58 companies are not yet operating in Brazil, but could together represent investments of US$2.4 billion, he said. He added that the Singapore firms are mainly medium- sized firms that have found opportunities by supporting the big boys such as Keppel and Sembcorp there.

"It is a very good presence. Some are in the process of site location, some have already established a rep office and are in the process of increasing their presence. Those are medium-sized companies. You don't have to be Temasek Holdings, you don't have to be Keppel, there is opportunity for the SMEs as well."

With the World Cup in Brazil in 2014, and then the Olympics two years later, there is a distinct buzz in Brazil right now. "It is a very extensive calendar," said Mr de Carvalho. "Real estate will be a growing business in the next decade; I believe that very strongly."

But beyond the oil and gas industry, there are other sectors such as semiconductors, renewable energy and logistics, said Mr Marcos Mandacaru, coordinator for investment promotion at Apex-Brasil, the federal government's trade attraction agency.

The country has five major airports open for bidding in areas ranging from construction to operations, and the agency wants to get the Changi Airport Group on board.

Mr Mandacaru said the agency is trying to get Singapore-based chip-maker Stats ChipPAC to invest in Brazil as well. US chip giant Freescale already operates in Brazil.

"We are working with Freescale to expand operations to develop chips for the top four automakers in Brazil," he said. "The next step is to bring to Brazil the clients of Freescale. Stats ChipPAC is one our targets to attract to Brazil."

He added: "We are engaged in building the semiconductor environment in Brazil. But we are some steps behind Singapore, South Korea and the United States. So every company is welcome."

Robin Chan

The Straits Times

Business & Investment Opportunities
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