Microsoft consolidates Asia Pacific operations

Microsoft is to merge ten Asia Pacific manufacturing plants into one regional operations centre, which it will set up in Singapore next year.

The centre, called Microsoft Operations Pte, will employ approximately 100 people. The company aims to invest $57m each year at the site, on manufacturing and sales.

Microsoft's communications manager for South Asia, Sandra Gall, said there is no direct connection between the Asian economic crisis and its decision to consolidate operations. But she conceded that low labour costs made Singapore a good choice.

"We decided to consolidate operations following sales growth over the past few years," she told Silicon News. "Microsoft's sales in the Asia Pacific region have been affected by the economic situation, but this centre will make operations more cost effective."