(SINGAPORE) Computer giant Dell is to move more of its global supply chain management and manufacturing operations to Singapore this year, which is expected to lead to hundreds of new jobs here.

Dell already has its headquarters for Asia-Pacific and Japan in Singapore, including business functions like sales, marketing and manufacturing management.

In 2005, it opened a design centre here, focusing on the development of products like printers and television sets. The company sells its computer systems directly to customers.

The latest move will see the addition of supply chain management capabilities to its local subsidiary so that the company can be 'closer' to its regional suppliers, said Dell spokesman T R Reid.

'We rely on a supply base that is disproportionately located in Asia, from Taiwan, China and other parts of the region,' he told BT in a phone interview.

He said the local team that currently oversees the company's regional manufacturing operations will also be beefed up to keep pace with Dell's rapid expansion. In Asia, the world's second-largest computer maker has production plants in Malaysia and China, producing equipment including desktop and laptop computers. It plans to open another manufacturing facility in India later this year.

'We will be creating more concentrated capabilities in supply chain management and manufacturing management in Singapore. This is the latest step in the evolution towards becoming a global company,' Mr Reid said.

'We recognise there are some things that might historically have been single headquarter functions but they can be better done if they are based somewhere else.'

With the enhanced role for Dell's local subsidiary comes a big boost in the number of jobs. The company plans to add between 300 and 400 workers to its regional operations over the 'next few quarters' and this increase will 'by and large' be in Singapore, Mr Reid said.

The company currently employs about 400 people here and a total of 24,800 across the entire Asia-Pacific region, including Japan.

In the second quarter of the firm's financial year 2007, Asia was responsible for 14 per cent of Dell's worldwide revenue. This figure is set to rise as computer sales continue to soar in the region, spurred by developing markets like China, India, Thailand and Vietnam. Even in a mature technology market like Singapore, demand for computers, especially notebooks, continues to be strong.

Dell's Singapore expansion plans came to light following a regulatory filing with the US Securities and Exchange Commission on Wednesday. Dell said it has issued 475.4 million shares worth some US$12 billion to a wholly owned unit on Dec 28.

According to media reports, the move is part of an internal restructuring exercise aimed at reducing the firm's tax rates as well as improving the operating efficiencies of its Asian subsidiaries.

This article first appeared in BT on January 05, 2007