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Fujitsu to embark on $47m spending spree

Japanese IT services giant wins coveted IHQ award; unveils aim of doubling revenues here to $1.2b within three years

By Narendra Aggarwal, Economics Correspondent

Japan’s top IT services company, Fujitsu, has announced a $47-million spending spree for its Singapore operations to help it double revenues here to $1.2 billion within three years.

This ambitious goal was unveiled as Fujitsu Asia, its Singapore-based business, won the coveted international headquarters (IHQ) award from the Economic Development Board (EDB) yesterday to coincide with its 30 years of operations here.

The IHQ award comes with customised incentive packages with lower concessionary tax rates on qualifying income.

Fujitsu Asia will spend the $47 million here over the next three years in areas such as job creation, training and improvements to its services and solutions business in the information and communications technology (ICT) field.

The company, with its headquarters (HQ) in Science Park Road, provides comprehensive integrated information technology (IT), telecommunications and networking solutions.

“The provision of comprehensive ICT solutions and services represents tremendous growth potential for Fujitsu in the Asean region,” said Fujitsu chairman Naoyuki Akikusa at a news conference yesterday.

“With our expertise in designing, building and operating business-critical IT systems for customers and Fujitsu Asia’s deep understanding of the Asean market and customers’ requirements, we are ideally positioned to capitalise on the region’s fast-growing demand for IT outsourcing and other sophisticated ICT services and solutions,” he added.

Headquartered in Tokyo, the parent, Fujitsu, recorded turnover of US$45 billion (S$77.9 billion) last year. It is a leading provider of customer-focused IT and communications solutions for the global marketplace.

“The partnership between Fujitsu and Singapore started 30 years ago and is still growing strong,” said EDB chairman Teo Ming Kian at the IHQ award ceremony yesterday.

“The company is now one of the anchor Japanese multinationals here. Today, Singapore is Fujitsu’s HQ for Asean. We are its nerve centre from where the company provides strategic direction and support services to its regional entities.”

Mr Teo said the growth prospects for Fujitsu in Singapore were bright. The global infocomms industry is experiencing a healthy resurgence in line with the improved economic outlook.

“Major players like Fujitsu are clearly taking advantage of such developments to forge ahead with new investments and expansion projects in Singapore,” he said.

The IT rebound also led to the adoption of more sophisticated IT systems by major enterprises and multinational companies (MNCs) in Singapore and the region, he said.

“In particular, we see tremendous opportunities in the area of shared services and outsourcing for Singapore.”

Companies such as Fujitsu can take full advantage of the presence of more than 7,000 MNCs in Singapore, 4,000 of which have regional HQ responsibilities from here, to expand their services to meet these MNCs’ needs, he said.

“EDB will continue to promote the industry aggressively and to attract more international companies to locate their shared activities here,” he added.

Mr Norikazu Karasuda, regional group chief executive of Fujitsu Asia, said:” Singapore’s excellent ICT infrastructure, established legal regulatory framework, highly skilled and multilingual workforce and social and political stability make it an ideal ground for regional operations.”

Reproduced courtesy of The Straits Times