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Tencent to mitigate setbacks in US, India with new regional hub in Singapore, analysts say
- Internet giant Tencent’s move to Singapore follows that of TikTok owner ByteDance, which plans to invest billions of dollars in the city state
- Tencent expects to meet demand for internet-based services in Singapore and across Southeast Asia
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Chinese internet giant Tencent Holdings is expected to mitigate its recent setbacks in the United States and India, according to analysts, with the opening of a new office in Singapore, a move designed to broaden its operations across Southeast Asia.
Establishing a new regional hub in Singapore is “a choice for Tencent to mitigate risks” amid trade restrictions in the US and India, said Shawn Yang, Shenzhen-based managing director of Blue Lotus Capital Advisors.
Tencent’s move to Singapore and a renewed focus on Southeast Asia have come after the company found itself caught in the middle of geopolitical tensions between Beijing and Washington. The Trump administration plans to ban business transactions in the US with Tencent’s ubiquitous social media app WeChat from September 20.
WeChat and other Tencent apps have also been blacklisted by New Delhi, following a clash between Indian and Chinese troops in a disputed Himalayan border in June.
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What makes Tencent such a tech goliath?
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Shenzhen-based Tencent follows the recent move by Chinese rival ByteDance, which plans to spend several billions of dollars and add hundreds of jobs over the next three years in Singapore, according to a Bloomberg report last week.
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