Banca IMI S.P.A is considering a
possible new location in Thailand and Singapore. Banca IMI is the investment
bank of Intesa Sanpaolo and a leading banking group in Italy with a strong
international presence. Banca IMI key focus is to assist its clients. A new
location can help better assist those clients. Clients include public administrations,
institutional investors, and financial network. The partnership with Intesa
Sanpaolo help Banca IMI offers a range of forecasts and investment strategies. Currently,
Banca IMI already invested in Italy, United Kingdom, and United States.
Thailand and Singapore offers some benefits where Banca IMI S.P.A can take
Thailand is a middle income
developing country. Banca IMI would be able to obtain a work force at lower
rates. Thailand has improved greatly in the recent decades. This country has a
strong banking system, reginal hub open to its dynamic investors, efficient
agricultural production, and industrial manufacture. There is a recurrent
political instability since 2006 in Thailand. The economy is heavily invested
on exports which account for sixty percent of GDP. Bangkok area is growing at a
faster pace compare to other cities in Thailand. Thailand crime rate is high in
bribery, political paralysis, trade, and complex crime widespread in the
Banca IMI S.P.A should not invest
in Thailand because Singapore offers businesses more. Thailand is growing but not
at the same pace as Singapore. Thailand offers cheap labor but it does not benefit
Banca IMI. Banca IMI needs a skill workforce in this new location. Thailand is not as bilingual as Singapore.
According to Mr. Marc I’Amie, Group Account Director in Millward Brown Bangkok,
it is very difficult to work in Thailand due to the language barrier. Employees
have to be capable of speaking Thai. Thailand is a good investment but it will
not be beneficial to invest in both Thailand and Singapore. The company will
have to choose one potential foreign investment.
Singapore has a high developed compared
to Thailand. Singapore has economic strengths and weaknesses. They have an
excellent strategic location and operate in the same time zone as Thailand.
Singapore is developed of high value sectors in Chemicals, pharmaceuticals, and
fiancé. Unfortunately, there is a shortage of skill labor and an aging population.
Their population is aging due to rising life expectancy and low fertility.
Singapore is addressing this issue and came up with a solution. The government is
creating an age-friendly environment to support the needs of our ageing population.
Singapore offers foreign and domestic enterprises with efficient administration
and high-quality infrastructure. Singapore has a better control of corruption compare
to Thailand. In recent years, Singapore’s crime rate is very low due to their increasing
their toughness on corruption.
Banca IMI S.P.A will greatly
benefit by investing in Singapore. The company will be able to assist their
clients with a new time zone. Clients will be able to reach out and receive a
response at any time of their choosing. The bank can also achieve a more accurate
trade processing. We will be able to
confirm, match, and settle trades faster which benefits the clients and
company. Banca IMI S.P.A is currently focused on building their client list.
The company entering a new time zone will promote new clients. Thailand and
Singapore will benefit Banca IMI in the same way. Singapore will also promote
the company ethically. Since Singapore is strict in their laws, the company
will show their clients to invest in them because they are ethical. The country
does offer skill labor but it is limited. Banca IMI is known to invest in relocating
their Milan workforce. The company will not be affected by this economic weakness.
Singapore is rapidly growing and Banca IMI should invest in this potential
market. Barclay is an example of a bank who invested in Singapore. Banca IMI
should not miss out on this opportunity. Singapore is bilingual where it can
benefit the communication between the company and clients. Banca IMI
communication with clients is the key focus in current and future projects.
Banca IMI S.P.A best choice is to
invest in Singapore over Thailand. The company should choose to invest in
another time zone to benefit the clients. Since Singapore and Thailand are roughly
in the same time zone, the investment in both will be redundant. Banca IMI has an
opportunity to invest in a growing market before it is more expensive to participate.