Singapore: gateway to growth

“There are great opportunities for Italian corporates in sectors where there is a high consumption demand and where we can lead the way, such as food and beverage, luxury goods, education, and healthcare. These are all sectors and subsectors where Italian corporates are leading the way,” says Benedetti.
Emerging opportunities can be seen in the blossoming countries of the region. Benedetti holds up Indonesia as a case in point – a country whose GDP already tops $1 trillion and, with a young population, one that is still growing.
“There will be a demand for infrastructure, greater energy usage, plus consumption of products will grow,” he says. “All the infrastructure investments are needed across this market: roads, airports, oil and gas, telecoms. As a bank, we have competence and knowledge in these sectors. There is a huge opportunity here.”
Benedetti notes that the office is also providing sizable project finance in renewable energy across ASEAN countries – in line with Intesa Sanpaolo’s goal to support future-minded, sustainable projects.
He points to the presence of the Asia Development Bank, which supports infrastructure projects in the region, as a key support for capital-intensive infrastructure projects. Given infrastructure projects are unlikely to be stopped or fall through, Benedetti believes they are as near to a certain investment as it is possible to get. “These projects are so critical for the countries that at some point they will be delivered. They are part of the inevitable plan of development,” he says.
Another emerging opportunity is the moving of entire supply chains of European, Korean and Japanese companies into south-east Asia. According to Benedetti, a large number of enterprises are relocating to South East Asia to avoid the impact of the US trade war with China.

Among them, Vietnam is the country that has benefited most from the trade war. Thailand and Malaysia are actively courting manufacturers fleeing China to escape the trade war, aiming to become major production hubs as rising labour costs threaten Vietnam’s status as an alternative destination.
“There are ample opportunities for manufacturing investments, and so far the investments from large conglomerates have proved successful.”
Singapore itself will continue to be a good place to set up in business, especially with the new EU-Singapore free trade agreement, which will remove customs duties for EU goods. Benedetti predicts this will be a big positive for food providers.
Another area that will be stimulated by this deal is investment in the green economy. “For Intesa Sanpaolo, growth in the sustainable economy is one of the key pillars for growth overseas. Singapore is the right place to be as there are plenty of projects with high social impact run directly by the government,” he says.
Singapore’s real-estate sector is already putting circular economy practices in place and there is room for international companies to provide goods and services to reach new green aims.
Whatever the project, Benedetti and his team are ready to share their extensive knowledge of Singapore and its neighbouring countries. “We will be there for Italians and Europeans who want to invest, but also for local players,” he says.