9-1-2024 (CHENNAI) Singaporean companies have committed to investing $5 billion in various sectors, including infrastructure, technology, sustainability, and data centres, in Tamil Nadu. This move signals a substantial expansion of Singapore’s footprint in the southern Indian state and was announced on January 7 during the inaugural day of the two-day Tamil Nadu Global Investors Meet in Chennai, the state’s capital.
According to a press release from Singapore’s Ministry of Trade and Industry (MTI), the investment plans encompass a $500 million commitment from CapitaLand Investment. This investment is targeted at business parks, logistics, warehouses, and a data centre. CapitaLand Investment already has a presence in over 20 tech and business parks, industrial areas, logistics hubs, lodging facilities, data centres, and co-working spaces across seven Indian cities, including Chennai.
In a separate initiative, LionsBot, a company specializing in the design and manufacture of automated industrial-scale cleaning robots, will collaborate with leading universities in Tamil Nadu. The goal is to establish training laboratories and develop hardware and software courses.
Beyond financial commitments, Singaporean companies are actively contributing to job creation in Tamil Nadu. Crayon Data, specializing in artificial intelligence-led solutions in the banking, fintech, and travel sectors, aims to generate 150 direct jobs and 350 supporting jobs within the next three years. The company already operates a global development centre in Chennai with a workforce of 150 employees.
Mr Tan Soon Kim, Deputy Chief Executive of Enterprise Singapore (EnterpriseSG), an agency under MTI, expressed that these collaborative initiatives and associated investments demonstrate the strategic depth of engagement that Singaporean companies are building in Tamil Nadu. He also highlighted the state’s strong opportunities and investor-friendly policies.
Memorandums of understanding were formalized between the Singapore companies and Guidance Tamil Nadu, the investment promotion agency of the Tamil Nadu government. The investments are expected to be implemented over several years.
MTI emphasized that Tamil Nadu is a natural choice for Singaporean companies venturing into South India, given the cultural and historical affinity between the two regions. With a population of 72 million, Tamil Nadu is the second-largest contributor to India’s gross domestic product, following Maharashtra, whose capital is Mumbai.
Tamil Nadu aims to achieve a $1 trillion (S$1.33 trillion) economy by 2030, and the state has actively courted foreign investors. Chief Minister Mr M.K. Stalin visited Singapore in May 2023 to attract investments from the Southeast Asian nation.
Singapore’s delegation to the investors’ meet, led by Singapore High Commissioner to India Simon Wong, included officials from MTI, the Ministry of Foreign Affairs, and EnterpriseSG. Additionally, 60 business representatives from the Singapore Business Federation and the Singapore Indian Chamber of Commerce and Industry participated.
During one of the sessions at the meeting, Mr Wong highlighted the potential for Tamil Nadu and Singapore to explore the export of promising renewable energy solutions, such as green hydrogen and green ammonia, from India to Singapore.
Numerous other deals were announced at the investors’ summit between the Tamil Nadu government and Indian and foreign firms, including Tata Electronics, Pegatron, and Hyundai Motors.
