SINGAPORE - Singapore is the second-best city for technology companies looking to establish or expand operations in Asia, according to a report published on Wednesday (Sept 19) by real estate services and investment management company Colliers International.
In the report, titled "Top Locations in Asia - Technology Sector", Colliers ranked 16 large Asian cities on socio-economic, property and human factors in order to identify and recommend the best urban locations in Asia. The three top cities of Bangalore, Singapore and Shenzhen got 61 per cent or more on their scoring scale.
Bangalore (68 per cent) ranked first, with the fastest-growing city in Asia over the next five to 10 years offering a wide and deep talent pool. The Indian city also boasts the largest stock of Grade A office space in Asia after Tokyo, low staff costs and office rents, and low cost of living. However, it scored less well on the quality of its office accommodation and infrastructure, said the report.
Singapore (63 per cent) scored highly due largely to its strong talent pool, and on personal tax rate, safety and living quality. These outweighed its lower ranking on property metrics. The city is expected to continue to benefit from its position as a well-connected financial and communications hub for South-east Asia and Asia-Pacific operations, said Colliers.
Shenzhen (61 per cent) reigns as China's technology capital, said the report. Heavy investment in R&D has broadened the city's tech base far beyond hardware manufacturing, while it also scored highly on property factors due to moderate staff costs, ample office stock, flexible workspace, and planned new supply.
Other cities that came in closely after the top three were Beijing, Hyderabad and Hong Kong. The remaining 10 cities received scores between 60 and 50 per cent, with dull long-run growth prospects weighing down Tokyo and Taipei despite good scores on human factors. Emerging cities scored well on high growth and low costs, but performed badly on employment criteria and human aspirational metrics.
"Looking ahead, Singapore should continue to benefit from its position as the natural financial and communications hub of South-east Asia, and from the government-supported transition to the so-called Fourth Industrial Revolution," the report said. "We envisage supply of business park and high-specification industrial space doubling by 2030."