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Amazon is expanding its operations in Singapore, in the latest sign of the city-state’s growing appeal as an Asian hub for global tech companies.
The US technology group will take over three floors of Citigroup’s offices in the central business district, according to two people with knowledge of the deal. Citi is relocating several of its CBD employees to the Changi Business Park as it adjusts its operations after the Covid-19 pandemic.
Singapore has tried to position itself as the hub of Asia’s tech sector and is already home to the regional headquarters of several global tech companies, from Alibaba to Facebook.
Singapore’s appeal has increased as Chinese and American groups chase growth in fast-growing Southeast Asian economies such as Indonesia and Thailand.
The city has also benefited from instability in Hong Kong following last year’s anti-government protests and Beijing’s imposition of a new national security law in June.
The city is already Amazon’s hub in Asia and Amazon Web Services, its cloud unit, is the largest provider by market share in the region, excluding China.
Amazon’s decision preceded the coronavirus crisis, said one of the people with knowledge of the Amazon deal.
Amazon and Citi declined to comment on the decision, which was first reported by Bloomberg.
Ashley Swan, CEO of the Savills real estate agency in Singapore, said the tech industry was expanding unlike other sectors.
“If you want to dominate Southeast Asia, which everyone sees as a great growth engine, get out of Singapore,” Swan said.
“It feels more significant right now because it is in the context of other industries that are shrinking or not expanding as they thought,” he added.
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Facebook and PayPal invested in Gojek, the Indonesian tech group, in June following previous investments from Google and Visa.
Tesla, the US electric car maker, is also recruiting for various positions in the city.
Chinese companies have also focused on Singapore. Tencent said this month that it would open a regional center in Singapore to support its investments in Southeast Asia. Alibaba bought half of a $ 1.2 billion skyscraper in May, one of its biggest real estate deals outside of mainland China.
Analysts expect Amazon to expand into other markets in the region, including Indonesia, even as it lags behind local e-commerce rivals, including Alibaba’s Lazada and Sea-owned Shopee, in popularity in Singapore.
