August 2008: Panama, lying in the isthmus that joins North and South America, is one of CrimsonLogic's latest success stories abroad.

The local ICT company which offers e-government solutions, got its break in that distant part of the world in September 2003 when it won a port security project for the Panama Canal Authority.

According to CEO Leong Peng Kiong, in an interview with Business Times, the automated pre-arrival declaration and mobile inspection system was completed in 2004, and consequently served as a good reference for the company in the region.

Second success in Panama

Last year, CrimsonLogic won another deal in Panama: building an electronic trade documentation system for the Colon Free Zone Administration. The free trade zone is the largest in the Western Hemisphere. Last year it accounted for 92 percent of Panama's exports and 64 percent of imports, according to UN figures.

CrimsonLogic, with 700 staff and annual sales turnover of $80 million, has been providing e-government services for two decades. Its overseas ventures are in the Middle East, India, Malaysia, the Philippines, China, Canada, the United States and Central America.

According to Mr Leong, these overseas businesses account for one-third of the company's revenues, and "will continue to rise," he says.

The Latin challenge

Photo: Language and cultural challenges face Singapore companies abroad. Here in Panama City is a religious festival where fishermen carry an image of their patron saint the Virgin of Carmen (AFP photo, July 16, 2008).

Language and cultural differences can be challenging when doing business in Latin America. "The business and legal environment is quite different from what we are used to in Singapore," Mr Leong says in the interview.

Spanish is largely used as the business language for most countries in the continent, and as most Singaporeans don't speak the language, the solution is to hire local staff, as well as to engage local partners.

Thanks to the company's success in the projects for the Panama Canal Authority and the Colon Free Zone Administration, CrimsonLogic has built a strong branding and track record that will open doors in other Central American markets, adds Mr Leong.

Where is Panama

Panama lies at the bottom of Central America, the narrow neck of land connecting North and South America. The tiny republic is both an international business hub and a transit trading centre.

Because of its strategic location and the presence of the canal that connects the Pacific and Atlantic Oceans, the economy is mainly service-based, dominated by banking, commerce, tourism, trading and private industries. Panama's main export is coffee.

More on CrimsonLogic

Have a success story to share?
Email us at contact_isg@portalcity.com.sg to request for your story to be featured.