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SCMP Reporter

Dell Computer is moving its Asia-Pacific headquarters from Hong Kong to Singapore to tap into the Southeast Asian country's expanding Internet industry.

 Texas-based Dell, the world's top direct seller of personal computers, is also moving its Web Farm from Tokyo to Singapore.

 Web Farm handles the company's Internet orders for computers and helps companies set up Web sites.

 John Legere, Dell's president for the Asia-Pacific region, Europe, the Middle East and Africa, said: 'When running a region that extends to Australia, Singapore is the ideal location.'  The decision to move its headquarters is a snub to Hong Kong's efforts to become a high-technology hub in the region.

 However, it is a boost for Singapore, as it strives to become the first country in the world to connect every home and office to the Internet.

 Hong Kong, where Dell employs about 40 staff, will remain a sales office for the Greater China region.

 The company did not disclose how many staff would be moved from Hong Kong.

 'Singapore will be where we put all our central staff, and it will also be where we put some of the higher technical capabilities, including the hub of our Internet activities,' Mr Legere said.

 Morton Topfer, Dell's vice-chairman, said the company was in talks with Singapore's Economic Development Board (EDB) to work out the details of the planned expansion in the city-state.

 Multinational companies that gain regional headquarters status from the EDB typically enjoy lucrative tax breaks during their early years.

 It is not known what incentives Singapore has offered.

 Mr Legere said Hong Kong did not provide Dell with 'centricity or the economic incentives to sell its business'.

 Dell, which started its Asia-Pacific operations four years ago, employs 130 people in Singapore, which is home to its main technical-support operations for the region.

 Penang, in northern Malaysia, will continue to be Dell's main manufacturing hub for the region.

 The company also has a plant in Xiamen in Fujian.

 With sales in the area making up 7 per cent of its US$6.1 billion turnover for the three months to July 31, giving it 3.5 per cent of the personal computer market, Dell has ambitious plans for the region.

 It expects to at least triple that share in three years, raising its ranking to the top personal computer seller from seventh at present.

 IBM, the region's No 1 computer-maker, has 9 per cent of the market.

 About 30 per cent of Dell's Asian computer sales are made through the Internet. The company expects that to rise to 50 per cent 'in the near future'.

 Mr Topfer said the company would increase its staff numbers substantially in the next three to four years as it bids for the No 1 slot.



Dell moves Asia base to Singapore