ByteDance, the owner of popular short-video app TikTok, is planning to invest billions of dollars and recruit hundreds of workers in Singapore within the next 3 years, a individual familiar with the matter told journalists.
The company’s plans about setting up a new data centre in the city-state is false, the source said, adding that the Beijing-based company had stepped up purchasing cloud-computing servers in Singapore to copy US data for contingency.
Bloomberg reported that ByteDance was planning to make Singapore its beachhead for the remainder of Asia within its global expansion.
Singapore continues to be ramping up efforts over the last few years to attract tech companies and investors. The coronavirus pandemic has hit the global trade and transportation hub hard, hastening the need to reinvent itself.
The city-state is likely to become more attractive to companies looking for a neutral ground amid rising tensions between the United States and China, according to analysts.
The investment comes as ByteDance is being made to sell TikTok’s US assets under pressure from the Trump government, which has cited potential national security threat on account of the huge amount of private data the app is compiling on US consumers.
According to a Bloomberg News on Thursday, the business is likely to miss the September 20 deadline enforced by US President Trump to the sale of assets as new Chinese regulations have complicated deal discussions with exemptions Microsoft Corp and Oracle Corp.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Aishwarya Nair in Bengaluru and Yingzhi Yang in Beijing. Editing by Sherry Jacob-Phillips and Anil D’Silva.
To stay on top of the latest developments across the platform economy and gain access to our problem-solving tools and content sets, you can subscribe for just $19 per month.