Established in Singapore in the early 1970s, DHL set up its logistics operations when the Republic’s focus then was as a leading manufacturer in the technology sector, distributing manufactured goods to customers.

Richard Owens, Chief Executive Officer, Global Customer Solutions, DHL Asia Pacific, recounted, “China had yet to emerge at that point and the other regional areas such as Thailand and Malaysia had certain disadvantages, which made Singapore an obvious choice.”

Over the years, competition to become a regional logistics hub has intensified. Malaysia, Hong Kong, Japan and subsequently, China, have been snapping at Singapore’s heels.

Yet through it all, DHL, the company that specialises in moving, stayed put. In fact, it has been expanding its presence in Singapore.

In the last decade alone, DHL has invested over US$2.2 billion across Asia Pacific. In Singapore, DHL has gradually built up its capabilities on the island state to include supply chain management of aerospace maintenance, repair and overhaul activities.

In 2006, DHL set up its 30,000 square foot Healthcare & Life Sciences Hub in Singapore and by 2007, cemented its position as Singapore’s largest logistics and express player with the set-up of the regional headquarters of all its divisions here as well as the launch of the DHL Supply Chain Center of Excellence and its Aerospace Hub. Two years later in 2009, DHL launched a dedicated Oil and Energy Centre of Excellence. as well as opened its Aid & Relief Logistics unit to serve the Asia Pacific region.

Today, DHL has over 3,500 employees from more than 40 countries based in Singapore.

DHL is not alone to expand its operations in Singapore. Over the years, 17 of the top 25 third party logistics companies now have their base here. So what is it about Singapore that makes the Republic so attractive as a logistic hub?

Owens explained matter-of-factly, “Singapore continuously reinvents itself. The country understands business needs and doing business here is a breeze. The strong compliance issues, regulatory requirements and efficient custom processes give investors confidence in doing and growing their businesses here.

“Singapore has also established itself as a strong competitor in growth industries such as petrochemical and pharmaceutical and electronics, which boosted DHL’s growth here as well,” he added.

Of the third party logistics companies, DHL is the largest. Altogether, they serve some of the 7,000 MNCs based in the country, reinforcing the Republic’s conducive business environment.

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These companies are drawn to Singapore for its world-class infrastructure and global connectivity. Moving goods from factories to markets has never been easier with 200 shipping lines that ply between Singapore and 600 other ports in 123 countries, while air cargoes are as speedily shuttled by over 4,500 flights to 200 cities around the world.

But businesses do not run by themselves. The Republic has to rely heavily on its people – its diverse talent pool, and this is especially true in the logistics industry.

“Talent is a key part of our growth agenda in Singapore. We need trained people who have a wide range of skill sets and here in Singapore, the talent pool has what we need,” explained Owens.

He credited the Singapore government for its foresight in introducing logistics as a discipline in the universities some years back.

“It means that people have been trained in logistics for quite some time now. The Government made it very attractive for learning bodies like Georgia Tech to establish here. New students, both local and foreign, are drawn to the training opportunities here, which is ideal for companies like us. DHL benefits tremendously as we get access to a large pool of talent for our recruitment,” he added.

The Government proactively supports the industry in training, research and development, by bringing together businesses and tertiary institutions. One example is The Logistics Institute – a collaboration between Georgia Institute of Technology and the National University of Singapore (NUS).

DHL has also set up a research and development centre – the Sustainable Supply Chain Centre for the Asia Pacific – working in partnership with the NUS’ logistics studies department to look into innovative ways to meet supply chain management challenges of the future, especially those involving green issues.

But for a global company like DHL, there is never enough talent around to cope with the constant business growth.

“We have also brought in talent from overseas – people with consulting and engineering backgrounds. Singapore is an attractive destination for living and working,” Owens said.

Owens himself relocated to Singapore from Hong Kong with his family. “I remember my kids went to a school in Hong Kong that was right on the flight path of the airport. It was a school with no playing fields, a bit of a concrete jungle. From my wife’s point of view, Singapore is a far better environment for the children and we have been here for quite some time now. We obviously enjoy living and working here.”

The experienced logistics honcho certainly knows a good move when he makes one.

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