It is a little known fact that Singapore produces half of all the perfume that goes into Procter & Gamble (P&G) products sold around the world.

The consumer titan picked the Republic from out of 18 possible sites in the region to set up its first Asian perfume plant, which manufactures perfume oil that goes into P&G’s leading brands like Pantene and Head & Shoulders shampoos, Olay skin moisturisers, Tide laundry detergents and Downy fabric softeners.

If P&G is smelling the sweet fragrance of success from the perfume plant, it will not be a surprise. Two years after the decision to set up the plant, the company announced it will invest another S$250 million to build a Singapore Innovation Centre which will be a key pillar in sustaining its rapid growth in the region.

The facility, to be staffed by 400 people, from technicians to PHD holders, will make “designed in Singapore” products a reality for Asian consumers. When it opens in 2013, it will carry out a whole spectrum of product development activities, including consumer research, new material research, product formulation and package design.

It will practise P&G’s open innovation concept – known as Connect and Develop, which will see the company tie up with local talents such as research departments from the various universities and private research institutions based in Singapore. In particular, a three-year research agreement with A*STAR, a Singapore government agency that fosters scientific research and talent, will give P&G access to 14 research institutes that are involved in R&D in consumer products.

Charles Lim, Head of Human Resources, P&G Asia, said the Singapore government’s strong support and pro-business outlook have influenced its decision to continue to invest in Singapore since it set up a small distribution base in the country in the 1960s.

• Download video transcript

”The infrastructure development here in Singapore is second to none,” Mr Lim added. “In addition to this, the diverse talent pool located here allows us to hire staff for our businesses from within Singapore and elsewhere with ease.”

P&G’s employee profile in Singapore is one of the most diverse within the Cincinnati-based company’s global operations. It has 1,600 people from 40 different nationalities across three locations in the Lion City.

Singapore is strategic to P&G not only because it is the base for the company’s Asia-Pacific headquarters. The Republic also serves as the global headquarter for its high-end women’s cosmetic brand SK-II.

As such, it was only logical that P&G also trains its senior managers in Singapore. Its Asia Leadership Development Centre was opened in September 2010 and aims to train 500 managers from the region every year.

As the HR head for the region, the Asia Leadership Development Centre is close to Lim’s heart. He said: “We can use Singapore to create ‘truly Asian’ leaders because here, they can actually deal with multiple cultures within Asia.

At the same time, because we have a lot of MNCs present here, the candidates are exposed to wider perspectives on a range of global issues, especially from the West. What I call being able to manage East and connect West.”

Small wonder P&G is looking to Singapore’s melting pot of talents to stir up an exciting menu of products for the fast-growing Asian consumer market in the coming years.

• Download the full article