Businesses such as P&G, that invest in R&D or the registration of patents, therefore are in good stead to tap the 400% tax credit offered via the Productivity and Innovation Credit Scheme when they are based in Singapore.
Singapore (PRWEB) May 15, 2012
Procter & Gamble (P&G) has just announced that it will be relocating its global beauty and grooming business from Cincinnati to Singapore in a bid to tap the fast-growing Asia beauty market. Singapore company formation specialist Rikvin acknowledges that this will bode well for Singaporeans as employment will be generated and more enterprises will come to learn of Singapore’s position as Asia’s leading consumer business hub.
According to Euromonitor International, the Asia Pacific region accounts for nearly half the world's US$96.9 billion market for skincare. It grew from US$37.6 billion in 2010 to US$42.3 billion last year. P&G also accounts for 5.8% of Asia's skincare market, led by its Olay and SK-II brands. Moreover, its babycare unit is already based in Singapore.
The migration of the business unit will take approximately two years and is an attempt by the company to focus on its key consumer bases, following a slowdown in the developed world. As a result, Virginia Drosos, P&G’s Group President of Global Beauty, will retire from the company effective September this year due to family commitments. She will be succeeded by Deb Henretta, who currently is the Group President for Asia.
Analysis by Rikvin shows that P&G has already laid the foundation for the migration of its skin, cosmetics and personal care business five years prior. In December 2007, P&G opened a 6500 square meter lead design perfume plant in Singapore. The facility was designed to drive the company’s global perfume business. Additionally, the company began the construction of its S$120 million Innovation Center last year. The research and development (R&D) center, which is set to lead the beauty care and male grooming markets by 2015, will generate 400 jobs when fully completed.
“This reaffirms our belief that Singapore company registration is a good option for the world's leading consumer businesses. We are optimistic that other major consumer businesses will take a cue from P&G and see Singapore as Asia’s leading consumer business hub. This in turn may inspire more consumer care and other related business to relocate here, bringing with them white- and gold-collar professionals who will complement the local workforce and opt for Singapore employment pass application,” explained Mr. Satish Bakhda, Head of Rikvin’s Operations.
“International giants invest more in R&D and implement stronger marketing efforts backed by well-known brand ambassadors. Consumers are also more inclined towards international brands, as they have stronger brand equity and are associated with quality. Therefore, consumer businesses such as P&G, that invest in R&D or the registration of patents, therefore are in good stead to tap the 400% tax credit offered via the Productivity and Innovation Credit Scheme when they are based in Singapore,” concluded Mr. Bakhda.
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Established in 1998, Rikvin has since partnered with thousands of investors, entrepreneurs and professionals in their pursuit to access business opportunities overseas. Rikvin’s areas of expertise include Singapore company incorporation, offshore company setup, accounting, taxation and other related corporate services. Rikvin also provides Singapore work visa and immigration services for foreign professionals who wish to relocate to Singapore.
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