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UPDATE 1-Drugmaker GSK to steer Asian business from new Singapore HQ

Wed, 11th Mar 2015 05:57

* 100 job roles to move to Singapore

* New HQ slated for completion in late 2016 (Adds details, CEO comments)

SINGAPORE/LONDON, March 11 (Reuters) - DrugmakerGlaxoSmithKline will establish a new headquarters forAsia in Singapore to make quicker decisions for the region, amove that follows a recent rocky ride in China due to a damagingbribery scandal.

The British-based group said it expects its pharmaceutical,consumer healthcare and vaccine businesses to grow significantlyfaster in Asia than in the rest of the world.

"While we expect it to be a bit slower going forward than itwas five years ago, we still think it's going to be a veryvibrant growth area," Chief Executive Andrew Witty toldreporters.

Witty has made emerging markets a priority for GSK sincetaking over in 2008.

GSK has over 700 office-based employees in Singapore andexpects an additional 100 roles to move into the country as theheadquarters nears completion. Construction is expected to be finished by the end of 2016.

Asia business decisions are currently mainly handled out ofLondon.

Last year, the drugmaker was fined 3 billion yuan ($479million) in China following allegations in 2013 it funnelledfunds to travel agencies to facilitate bribes to doctors andofficials. The high-profile case hit GSK's drug sales in thecountry.

It is dismissing 110 employees in China for misconduct,people familiar with the matter said this month.

"I don't have an expectation that there will be more peopleleaving, but equally if we found somebody else who did somethingwrong then they would go through the process and whatever wouldhappen would happen," Witty said.

GSK's move follows similar ones by other global companies,including automaker General Motors Co, which moved itsinternational operations headquarters to the city-state lastyear.

Companies are lured to Singapore by its competitive taxrates, use of the English language, skilled workforce and highstandards of living. (Reporting by Aradhana Aravindan and Ben Hirschler; Editing byTom Heneghan and Edwina Gibbs)

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