Dyson to Move HQ to Singapore

Dyson has recently announced that it will relocate its company headquarters to Singapore, and that the move will happen in a matter of months. A number of major companies, including banking firms like Merrill Lynch, have stated they will be moving production, staff or offices out of the UK due to concerns about Brexit. Dyson, interestingly, claims this has nothing to do with their decision to move.

The company has been quick to attract criticism as a result – especially due to founder Sir James Dyson’s high profile support for Brexit. With only weeks to go, the fact that the company has decided to suddenly uproot from the UKcould be seen as incredibly hypocritical. Despite this, the company’s chief executive, Jim Rowan, said that the move: “..has nothing to do with Brexit or tax, it’s about making sure we are future proofed. There are huge revenue opportunities in Singapore, China is the poster child of that.”.

  Why Singapore?

Singapore is a well known global powerhouse when it comes to trading, and grants easy shipping access to Asian markets. Given that so much of Dyson’s current business currently comes from these markets, then it would make sense for the company to have a strong presence there. Dyson has already moved a number of assets to Singapore however, especially where manufacturing is concerned. The organisation hasn’t used the UK for manufacturing for many years as a result.

The furore caused by the announcement is more about timing, and the fact that the company is moving their entire headquarters. Some observers have argued that the move is perfectly timed to coincide with the fact that Singapore and the EU successfully concluded eight years of negotiation resulting in a trade and investment deal towards the end of last year. This would, of course, allow Dyson to continue to access EU markets while avoiding any of the potential complications caused by Brexit, if the company was based in Singapore.

There’s also the question of tax. The simple fact is that the company will pay less tax in Singapore – 17% compared to the UK’s rate of 19% – which is almost certain to have been a key factor in the decision making process, despite Jim Rowan’s statement.

  Dyson’s Future Plans

In addition to the significant investment the company already has in the region, Dyson have additional motivation to make the move to Singapore. The organisation is currently developmening an electric car, and given that 56% of electric car market sales are concentrated in the Asian and East Asian regions, it would make sense to have a stronger executive presence in the area.

The company even stated that: “An increasing majority of Dyson’s customers and all of our manufacturing operations are now in Asia; this shift has been occurring for some time and will quicken as Dyson brings its electric vehicle to market.”.

  Criticisms of the Move

A number of MPs and commentators have been quick to criticise the move. This is understandable given the fact that Sir James pro brexit stance is no secret, and that he was instrumental in the decision (as confirmed by Jim Rowan) to move.

Labour’s shadow business secretary commented: “For too long this government has allowed a culture of short termism to work its way into some of our greatest British businesses, whilst those businesses doing the right thing and investing in their communities and workforce for the long term are left wanting, with little government support.”.

The Liberal Democrat MP Layla Moran also added: ‘This is staggering hypocrisy for Brexit-backing businessman James Dyson. It is utterly unbelievable that the business face of Brexit is moving yet another part of his business out of the UK. James Dyson can say whatever he wants but he is ditching Britain. This can only be seen as a vote of no confidence in the idea of Brexit Britain.”.

To be fair to the Dyson, Jim Rowan was adamant that they would still continue to invest in its UK sites to the tune of £200 million, proving that it wasn’t abandoning Britain entirely. Even so, it’s hard to believe that Brexit had no impact on the company’s decision at all.

While there is no definitive way to know just how much Brexit has really affected the Dyson’s relocation, it’s difficult to see the move in a positive light for the UK as a whole, especially given the amount of other leading organisations that have already started moving abroad as a result of Brexit. That said, blaming Brexit for the decision entirely also seems unfair, given the company’s current goals are clearly focused in Asia.