24 hours after touching down in Singapore's Changi Airport, 14 RUB geography undergraduates had already completed visits to four organisations in the city-state. Starting with a visit to semiconductor giant Infineon's Asia-Pacific headquarters, the group visited the German Centre and the Singaporean-German Chamber of Industry and Commerce (SGC), before completing the day's programme at DHL's ultra-modern South Asia Hub. This dense programme marked the beginning of a two-week field trip through Singapore, Malaysia and Indonesia, or SINMALINA for short.
Next to its Asia-Pacific headquarters, Infineon also operates a testing facility for semiconductors in Singapore, applying the latest process technologies. Upstream wafer fabrication is located in Kulim (Malaysia), while assembly operations can be found in Malacca (Malaysia) and on Batam (Indonesia). In the process of their field trip, the group looks forward to visiting both Batamindo Industrial Park, where Infineon started to offshore manufacturing capacity in search of lower factor costs in 1996, as well as the 8,000 staff assembly facility in Malacca.
Tapping into the country's vibrant entrepreneurial ecosystem, Infineon most recently opened a co-innovation centre currently hosting four start-ups on its premises. Besides seeking to expand its markets, Infineon also wants import some entrepreneurial culture into its organisation in that way. This was outlined by Chief Financial Officer (CFO) Hans-Martin Stech, who welcomed Prof Kiese's field trip group for the third time after 2008 and 2013. He also stressed the company's sustained automation thrust, which most recently included smart factory and Industry 4.0 elements to more than double output whilst retaining its level of employment. Following his presentation, the group proceeded with an impressive real-time virtual factory tour, followed by an introduction to the plant's state-of-the art monitoring and control system.
Quickly heading to Jurong in the West of Singapore, the group visited the German Centre in the International Business Park next. The German Centre provides office space, consultancy services and networking opportunities under one roof to SMEs trying to expand their markets in Southeast Asia and beyond, using Singapore as a hub. After a tour with tenant relations manager Dominique Herold, they were joined by Melissa Brandner, a senior consultant in charge of international trade promotion at the SGC, who gave an overview of Singapore's economy and location factors. In passing, both expatriates also freely shared views on living in Singapore.
When shipping their low-weight but high-value products to their customers, Infineon relies on DHL's logistics services. In 2016, DHL opened its ultra-modern and high-speed South Asia Hub in the Airport Business Park at Changi. A tropical rainstorm and a road accident caused some delay on the way to the far Eastern tip of the island, but the effort was definitely worthwhile. Following a security check to enter the restricted airport zone, the group received a warm welcome and informative introduction to DHL's modern logistics facility from Mr Tan Siong Buck, also including some real-time impressions from the shop floor thanks to CCTV. Within the field trip, DHL served as an example for Singapore's modern logistics infrastructure and services, which allows its many multinational corporations, such as Infineon, to integrate its regional and global production networks efficiently. As for Infineon, the DHL visit also highlighted the constant strive for productivity upgrading that unites the country and the firms operating there.
Singapore, 23 July 2019
Matthias Kiese
First they explored recent developments in Malaysia's federal state of Johor, leveraging on the proximity to Singapore. Driven by investment from China, a large-scale property development called Forest City should eventually house up to 700,000 residents once the construction on reclaimed land is completed.
After a ride on Malaysia's North-South highway running all the way from Johor in the South to the Thai border in the North, the group travelled to the historic town and UNESCO world heritage site of Malacca. A walking tour provided an overview, before they visited Infineon's 9,000 staff assembly and testing plant on Monday. Since its opening in 1973, Germany's leading semiconductor manufacturer invested about four billion US$ in Malaysia, showing strong commitment to the country and its stable business environment. In the afternoon, the group was welcomed by Malacca's Economic Development Office to discuss the state's achievements and challenges.
On Tuesday, the students proceeded towards Kuala Lumpur and learned about the Sepang Formular 1 racing course and KL's International Airport along the way. These are the southernmost exponents of a string of prestigious developments highlighting Malaysia's ambitions as an emerging economy. They were completed some twenty years ago, along with Malaysia's new administrative Capital, Putrajaya, and neighbouring Cyberjaya, the country's response to Silicon Valley. In Putrajaya, a surprise guest of honour joined the group. Geography Professor Lee Boon-thong provoked some thoughts about decontextualisation, fragmented urban planning and ethnic exclusion in this flagship project, which cost the government a whopping 25 billion US$ but only reached one third of its population target until today.
Thanks to the installation of Malaysia's new king adding another public holiday, the group managed to enter Kuala Lumpur without one of its notorious traffic jams and went straight on a walking tour of the city. The remaining three days of their programme will include visits to the Malaysian Investment Development Corporation (MIDA), the Malaysia Digital Economy Corporation (MDEC), the University of Malaya's Department of Urban and Regional Planning, as well as Elektrisola. Opened in 1990 in the hillside north of Kuala Lumpur, this plant is a subsidiary of the world market leader in the manufacturing of copper wire smaller than 0.15 mm in diameter. Headquartered in Reichshof (Oberbergischer Kreis, NRW), family-owned Elektrisola is a typical example of a Hidden Champion from the German countryside. Visits to the Royal Selangor Pewter Factory, Genting Highlands and the Batu Caves will complete the colourful and exciting itinerary.
Kuala Lumpur, 30 July 2019
Matthias Kiese
After a one-our ferry ride crossing the Straits of Singapore, one of the busiest sea-lanes through which more than one fifth of world trade is estimated to pass, they reached the island of Batam in the Indonesian Riau province. Based on the growth triangle concept leveraging the complementary factor endowments of Singapore on the one hand, and Batam and Malaysia’s Johor on the other, Batam had experienced rapid industrialisation and urbanisation during the last three decades.
Key to this rapid transformation was its status as a free trade zone and the Batamindo Industrial Park, which attracted numerous multinational corporations (MNCs) from especially Japan and Europe, including German giants Infineon and battery-maker Varta. At Batam, they make use of ample land, as well as low-cost labour, 80 per cent female and mostly recruited from Java and Sumatra by the park’s management company. At the same time, tenant firms use the technology, skills and excellent infrastructure of next-door Singapore for management and logistics. After a warm welcome and presentation by the park management company, a Singaporean-Indonesian joint venture, the group was show around a small but informative gallery, followed by the park itself. It includes many social facilities and dormitories housing about one quarter of the workforce of the Park’s 71 firms, which is roughly equivalent to RUB’s student population.
After the visit to Batamindo, the group switched to a regular tourist’s perspective with a tour and photo stop at Barelang Bridge, a lunch at a seafood restaurant by the sea, and a promotional visit to a shop selling Balinese coffee and other Indonesian products. When criss-crossing the island by bus, the social and environmental consequences of rapid and largely unplanned urbanisation became evident. After one more day in Singapore, the group looks forward to reaching the third country of its tour, Malaysia, on Sunday.
Singapore, 26 July 2019
Matthias Kiese