High-tech Kiwi products could boom in Singapore

By Christine Nikiel

Friday 5th October 2001

The low status given to intellectual property is holding back companies from exploiting the full potential for New Zealand high-tech businesses in the Asian market.

After a recent investment-scouting trip to Singapore, the head of one technology company said New Zealand products could boom if distributed there.

Singaporean investors in New Zealand companies would get massive returns from taking the intellectual property back to Singapore, eTravelgate CEO Jay de Faro said. It was undervalued here, he added.

New Zealand needed to pick industries to focus on and develop packages to allow companies to see it as a place to invest in business.

The head of a software company that designs programs to manage travel expenses said business relationships were given the highest priority in Singapore.

"In the US it's all about the product and can it make money," director of GlobalPro international operations Neil Dorset said. "In Singapore relationships are paramount - their main question is how can we work together as partners to make money."

Singapore was the gateway to Asia and was strategically important, he said. Partnering with venture capitalists and other companies would allow the company to extend its reach.

"The reality is the cost opportunity of not being able to penetrate the market early is often more than the cost of funds."

Mr Dorset hoped to sign up a distributor and six integrators in Singapore within the next 12 months, estimating the Asian market could be worth $30 million if that plan went ahead.

Nothing was formalised on the trip, he said, but he had some "deep and meaningful" discussions with companies.

"I would like things to have moved along faster but if you move along in the dialogue manner you'll get a better result. It's just a completely different way of doing business."

Deep Video Imaging chairman Keith Phillips said the company's actual-depth monitors were described by one US venture capitalist as the "sexiest technology on show."

The company made a lot of good contacts at Tech Venture, Asia's premier venture capital event but the terrorist attacks on the US did have an impact.

"A lot of the American venture capitalists weren't there, and while there was still a lot of money about, it's cautious money given the international circumstances."

The mission to Tech Venture was part of a long-term strategy by Trade New Zealand and Investment New Zealand to position New Zealand as a high-tech-savvy country and a provider for Singapore's technology hub. Future initiatives could include a virtual office in Singapore, which will give the technology companies a local presence, and a New Zealand industry presence at a technology park.

Trade NZ's senior trade commissioner for Southeast Asia, John Nicholson, said: "New Zealand's profile was also boosted by government support for the companies - that carries considerable weight in Asia."

ON THE WEB

Comments from our readers

No comments yet