 "Tata International to locate strategic functions in Singapore")
Singapore welcomed India's Tata International's announcement to locate their strategic global minerals and agri-commodities functions in the country on Thursday, saying the move should encourage more global traders to anchor their core business activities.
Minister of Trade and Industry S Iswaran noted that Tata's decision was based on "availability of experienced traders, low cost finance and structured financing tools, high concentration of bulk shipping and an efficient infrastructure for running a business as key reasons behind their decision to locate their strategic functions in Singapore".
"We welcome these developments which should also encourage more global traders in the metals and minerals industry to anchor core business activities here," Iswaran said, adding that Singapore has a community of 120 global traders.
"Over the years, we have built up a strong trading ecosystem that has attracted top metals and minerals companies who have anchored key strategic functions in Singapore," the minister said.
Over 70% of top minerals and mining companies and over 60% of the world's top 30 steel companies are based here, Iswaran said.
"This provides critical market intelligence that can inform decisions and allow market players to build relationships with different participants along the supply chain to understand their needs and create value," he said.
Speaking at the 4th Singapore Iron Ore Forum opening, he highlighted Singapore Exchange's role, citing the increasing trading volume of its iron ore derivative contracts.
It is currently clearing over 90% of the globally traded iron ore derivatives, with volume of 1.1 billion tonnes in 2015, up 83% on the year, Iswaran added.