Growing middle class in Latin America offers opportunities: IE S’pore

SINGAPORE – Latin America’s burgeoning middle class, which has grown 50 per cent over the last decade, presents business opportunities for Singaporean companies, trade development agency IE Singapore said today (July 9).

“The middle class now represents 34 per cent of its 600 million population. The number is expected to grow to 313 million in 15 years,” said Ms Sarah Ler, Divisional Director of Americas Group at IE Singapore.

“There is a need for companies to provide infrastructure, manufacturing and companies to feed growing consumer demand that would rise in the next few years...There are complexities such as language barriers and geographical distance. However, by finding a strong tie-up with local partner companies through IE Singapore, the navigation would be smoother,” she added.

Singaporean companies are already stepping up their presence in Latin America. Total investment from Singapore into Brazil, Mexico, Panama and Peru grew from about S$2.2 billion in 2011 to S$2.7 billion in 2012 and S$2.9 billion two years ago. Singapore is now the third-largest Asia-Pacific in-vestor in Brazil and Mexico, after Japan and South Korea.

Companies that have expanded into the region include Changi Airport Group and Sembcorp that are involved in infrastructure projects, and technology companies such as Sakura Tech that has a plant in Brazil producing parts for the electronics and automotive sectors.

Meanwhile, food company Tee Yih Jia sells its frozen spring rolls in Latin America through local distributors and furniture company Sunshine BLP supplies chairs to a company in Brazil.

IE Singapore will be holding its annual Latin Asia Business Forum this October, bringing together about 400 influencers from government, businesses and institutions to share industry insights.