How Singapore helped this Chinese manufacturer transform and grow in Southeast Asia

China’s manufacturing sector is undergoing a transformation. Known more for original equipment manufacturing (OEM), producing components for goods such as electronics and automobiles, manufacturers are now shifting towards original design manufacturing (ODM)―an end-to-end approach that covers research, design and production.

LY iTech is one such company with a strong legacy in OEM, which has successfully pivoted into ODM, with Singapore playing a key role in the transformation.

Finding the right team in Singapore to lead its transformation

The company specialises in manufacturing electrical components, such as linear motors, wireless chargers and 5G RF devices. Such components are widely used for products such as Smart Home devices, electric vehicles, and medical equipment.

Leveraging its success as an OEM, LY iTech now looks to offer customers a fuller suite of services with original R&D and design capabilities. This takes place in parallel with the company’s ambition to internationalise.

As the manufacturer has a global presence, “to enter the ODM space, we realised that we needed an international team with experience in cross-culture communication and cross-border project management, and with a global lens to strategy," says Chief Technology Officer and Vice President Dr Choy Chee-Mun.

That is what attracted LY iTech to Singapore.

Ranked second globally and top in Asia Pacific on the Global Talent Competitiveness Index 2021, the city-state is home to a ready talent pool with the deep technical expertise and regional experience the company seeks.

Tertiary institutions here, such as the National University of Singapore and Nanyang Technological University (NTU), are well-regarded internationally. Indeed, Dr Choy shares that many of its core Singapore team members were NTU graduates, with dual bachelor’s degrees.

The Singapore team’s experience has also helped the company find the right local partners―this is exemplified by Dr Choy himself.

Prior to joining LY iTech, the Singaporean was a senior scientist at the Singapore Institute of Manufacturing Technology (SIMTech), a research institute of the Agency for Science, Technology and Research (A*STAR). His experience sparked connections that helped the company identify potential innovation partners in Singapore.

Access to a globally connected innovation ecosystem in Singapore

As the manufacturer’s first overseas headquarters, Singapore brings LY iTech closer to many of its international clients, which have their headquarters, procurement teams and R&D centres here.

“Teleconferences will never be more effective than face-to-face discussions,” Dr Choy quips. With 46 per cent of Asia regional headquarters here, the vibrant ecosystem of global businesses helps the company quickly identify customers' needs and innovate solutions.

Singapore is also home to its R&D centre. Dr Choy shares that instead of project-driven research to meet the existing needs of customers, the centre here will focus on innovation that "may not necessarily be used in the next one to two years", but instead anticipates mid-to-long term needs.

With such innovation encouraged by diversity, the company is currently working together with NTU and A*STAR, which brings together different cultural, scientific, and academic backgrounds. “Both NTU and A*STAR have very strong research and team quality in new material development,” Dr Choy says.

He adds that Singapore’s robust IP regime also provides LY iTech with greater assurance to innovate boldly. The Republic is ranked second in the world and first in Asia for IP protection by the World Economic Forum’s Global Competitiveness Report 2019.

Singapore: LY iTech’s “control tower” in Southeast Asia (SEA)

Dr Choy reveals that SEA is a key market for the company with the region’s growth potential, given its advantages of political stability, cultural and business diversity, and strong links with the rest of Asia, the US and Europe. New growth areas such as renewable energy vehicles are also ripe with opportunities for the manufacturer.

As both an overseas headquarter location and R&D centre, Singapore is LY iTech’s “control tower” in SEA. The city-state coordinates across all the company’s manufacturing bases outside of China, including providing the ideal management team to lead growth in markets such as Vietnam.

With a strong start in Singapore, LY iTech is confident of its growth in SEA. For manufacturers, "a complete ecosystem is not a single production chain ... It also includes an internationalised talent pool, and the right R&D and management teams," Dr Choy says.

And that is exactly what LY iTech has found in Singapore.