Singapore manufacturers urged to expand into Batam, Bintan and Karimun amid Indonesia’s industrial push

BUILDING ECONOMIC RESILIENCE 

Recycling firm Redux, for instance, is looking to expand its capacity by up to five times, by tapping industrial parks and available space in the BBK region.

Its business development director Jeff Seah told CNA’s Singapore Tonight that the expansion is commercially viable given significantly lower land and labour costs compared with Singapore. 

“Being in the recycling industry, we need large spaces. BBK has more industrial land. It also has lower costs and strong support for industrial growth,” he added. 

“Importantly, because of the close proximity, we can stay connected.”

To boost mobility in the region, Indonesia has introduced visa-free entry to BBK for 13 nationalities, including all ASEAN citizens and Singapore permanent residents. 

It has also issued regulations to streamline licensing and make it easier for companies to invest.

Association of Small and Medium Enterprises (ASME) president Ang Yuit said such factors make the region “a very strong contender” for businesses looking to expand while remaining within an hour’s travel from Singapore.

“If you look at the land cost, that alone is a big factor, especially for businesses that require a lot of land,” said Mr Ang, who was also on the CNA programme.

“Of course, infrastructure development is an area that, from a business-to-business perspective, you’ve got to assess for yourself.”