In this interview with WIT, chairman and CEO of IHS, Steve Rowley, had said the company needed to build its presence in the US market and boost its technology offerings through acquisitions.

The two acquisitions adds to HIS’ stable which includes Trust International; Worldhotels; and Nexus World Services.

Asia also figures strongly in IHS’ expansion plans – and so we can expect more acquisition and expansion news from the group, which is now owned by Battery Ventures.

Rowley, who made a recent visit to Singapore to assess the Asia opportunity, also made a stop in Tokyo, after a break of nearly two decades, and shared his impressions of the Japanese market.

No difference in Japanese hoteliers’ needs and anywhere else

“Between the ages of 23 and 24, my first job took me between Tokyo and London. What’s changed? More English signs and how individual and expressive young Japanese fashion is – despite perceptions of the society being regimented and grey.

“The most surprising thing though is there’s very little difference in the dialogue between Japanese hoteliers versus anywhere else in terms of opportunities and issues.”

(Picture: A shop display window in Shibuya, Tokyo)

Olympics advice for Japan

Rowley said he also sensed an underlying sense of optimism fuelled by “Abenomics” and the prospect of hosting Olympics 2020 “even this early in the cycle”.

He recalls the day – July 6, 2005 – London was awarded Olympics 2012. “There was an immediate sense of optimism and the afterglow that is still evident.

“London totally lived up to it but not in the way you might imagine. What happened in London was that it allowed British people to discover themselves and got to know each other. It brought out a friendly, more open, extroverted side to the country.

“I think we surprised ourselves. The most important part of the Olympics was the warmth and friendliness of the 100,000 volunteers.”

For him, the financial benefits are hard to calculate – “who knows” – but the biggest benefit was emotional.

He said Japan has a lot to gain from the Olympics. “It will be harder for them than for us because one thing is the language but the government is embarking on an English campaign.”

Asked what advice he’d give Japan, he said, “Actually engage with local people very early on – don’t make it just a spectator sport but a participative one.”

Money advice for Singapore-based start-ups

He also had the opportunity to observe the Singapore start-up scene and having handled many transactions and acquisitions himself in his career, he had this to say about the city that’s trying to be the Silicon Valley of Asia, and its entrepreneurs.

“I don’t think this is a capital-limited environment – the money is available – but for entrepreneurs looking for capital, what you want is smart money and you want patient money.

“In the public markets, it’s not patient money. Private equity stays longer than public investors. With private equity, it’s about how you build value over three to five years. With public money, you can’t do that.”

He said that Singapore-based start-ups should therefore not seek Singapore money but rather money from elsewhere which comes with a network. “Networks are phenomenally important. Getting an investor who can put somebody experienced on your board is important.”

Singapore, hub of ideas, but can it scale?

He said Singapore was a vibrant market with a lot of new build. “The scale is tremendous, I am overwhelmed by the sheer success of the place, but it is expensive – how can we very cost-efficiently provide the services to our hotels?”

He said what he liked about Singapore was that it seemed to be a hub for ideas. “Sometimes you go to places that are at the outer edge of where the ideas are happening but with Singapore, I get the feeling that it seems to be the hub of ideas.”

Asked if Singapore had what it takes to be the Silicon Valley of Asia, Rowley said, “I would say part of Silicon Valley’s success has been driven by bringing the best brains from around the world, no matter the country – that’s the key to success.

“In a small city state, how much of that can you achieve?”

Picture: Singapore’s new Sports Hub (left) next to the Kallang Indoor Stadium