One Indonesia sector that SGX can tap

NAM Cheong's announcement earlier this week to increase its presence in the lucrative Indonesia offshore and marine market could see an uptick in SGX-listed companies heading there.

Malaysia's largest offshore support vessel (OSV) builder said that it was investing US$30.7 million for a 30 per cent stake in Marco Polo Marine's Indonesian subsidiary, BBR. The Jakarta-listed BBR provides shipping services for various kinds of bulk materials, including coal, granite and sand.

Nam Cheong is not the first SGX-listed company to tap the ship chartering segment in Indonesia. Indeed, Marco Polo Marine itself did so with its stake in BBR, while Pacific Radiance has its Indonesian joint venture with PT Logindo and ASL Marine (ASL) has its stake in PT Capital Nusantara (Capital). Nam Cheong itself had invested in another Indonesian shipping firm, BNI, in September 2013.