Subsea 7 to Exit Singapore for Kuala Lumpur
Rising costs of doing business in Singapore has forced Subsea7 to switch its regional headquarters from the city to Kuala Lumpur (KL), says a report in Business Times.
Against a backdrop of persistently low oil prices, fresh concerns have emerged over Singapore's competitiveness as an offshore and marine (O&M) hub, following a decision made by a fourth top-tier international subsea contractor to ship out most of its operations to KL.
The Oslo and Nasdaq-listed Subsea 7 will offer only a handful of its staff in Singapore relocation options to Kuala Lumpur. The move will see about two thirds of the 90-strong staff in Singapore made redundant.
The switiching office is expected to complet by the third quarter of 2016.
However, Subsea 7 declined to confirm the move to Kuala Lumpur and did not comment on the rationale behind its recent decision.
But a general industry consensus is that cost was the primary driver behind Subsea 7's decision to relocate, unlike the case for three preceding others - McDermott, Technip and Saipem.
"It is more about costs and calculations put together by accountants," Singapore Shipping Association (SSA) chairman Mike Meade remarked when probed on Subsea 7's planned move to Kuala Lumpur.