SINGAPORE — Homegrown bus manufacturer SC Auto is setting up a S$30 million facility in Yangon, Myanmar, in its first overseas foray after operating in Singapore for more than 20 years.

The move, in partnership with trade development agency International Enterprise Singapore, will enable SC Auto to increase its production by four times and cater to demands of both Myanmar and the region, the two entities said in a joint statement on Monday (June 12). The 16,000 square metre facility, which also makes SC Auto the first foreign bus manufacturer in Myanmar, is scheduled to begin production in the fourth quarter of next year, they said.

SC Auto, Singapore’s largest bus manufacturer, already exports its buses to Myanmar and the in-market manufacturing facility will allow it to be closer to its customers and respond more quickly to their requirements, SC Auto and IE Singapore said. For its Myanmar operations, SC Auto aims to produce over 100 buses in its first year and double its revenue. With the added international operations, manpower hires will increase to 600. SC Auto also plans to invest in robotic welding for this facility, yielding greater efficiency in the production process.

Mr Tan Siow Chua, Chairman of SC Auto, said: “Having built a strong foothold in Singapore, we needed to look overseas to continue to grow our business. With its demand for public transport, proximity to emerging Southeast Asian countries, as well as availability of land and relatively lower labour costs, Myanmar is the ideal location for our first venture overseas. IE Singapore came to us at a time when our business was at this turning point – its support and market connections gave us a strong push, making our entry into Myanmar much smoother and faster.”

Mr Law Chung Ming, Group Director for Transport & Logistics, IE Singapore, said: “As the first approved foreign bus manufacturing company in Myanmar, SC Auto has the first-mover advantage to address the huge demand in the country. With rapid urbanisation in Southeast Asia, there is a pressing need for transport and logistics solutions to enhance domestic and intra region connectivity. This presents excellent business opportunities for Singapore land transport companies, such as SC Auto, to export reliable land transport solutions and create quality jobs for Singaporeans.”

SC Auto is now working with IE Singapore to scale up its business overseas, targeting regional markets such as Thailand and Vietnam, as well as Australia and Taiwan, by 2020.