Tencent Holdings Ltd. has picked up Singapore as their “beachhead for Asia” after facing setbacks in U.S. and India. The Chinese conglomerate will set up their regional hub in Singapore following the geo-political tensions.
The report states that the tech giant had been considering setting up its regional hub in the city-state, as well as shifting some of its business operations out of China.
A source told Bloomberg that “Management at China’s largest social media and gaming company had been discussing Singapore as a potential regional hub and geopolitical tensions accelerated its plans, according to people familiar with the matter. Tencent has been considering the shift of some business operations — including international game publishing.”
Tencent was expanding globally to a large extent after making a mark in gaming industry. By strategically partnering with various companies, they made an impact in mobile gaming by introducing famous titles like Call of Duty: Mobile and PUBG Mobile. The geo-political tensions between China and other nations halted the rising impression of Tencent footprint across the world.
Tencent’s growth was hindered by two main restrictions imposed by India and U.S. India banned various chinese apps with three banwaves and the list included many Tencent developed apps including games like PUBG Mobile and Arena of Valour while President Trump’s executive orders prohibits unspecified transactions with WeChat and its operator Tencent in USA.
The company’s expansion to Singapore creates many job opportunities for bussiness including cross-border commerce, cloud computing and esports. Tencent has said that the new office will “support our growing bussiness in SouthEast Asia and beyond.”
