IT services company Singapore Computer Systems Ltd.
(SCS) and Oversea-Chinese Banking Corporation (OCBC Bank) have formed a 60-40 joint venture to operate an on-line electronic commerce hub, SCS announced yesterday.
The venture, called TX123, will offer business-to-business services for trading goods and services through a real-time, online digital marketplace system, according to SCS. The initial paid-up capital for the joint venture company will be S$7 million (US$4.2 million), SCS said in a statement.
With the support of several affiliated companies in the OCBC Bank and SCS parent Singapore Technologies Groups, TX123's hub has the potential to become the biggest e-commerce marketplace in the region, SCS said.
The hub will enable both buyers and sellers to complete the procurement cycle electronically, with features such as a user management system, favorites list, on-line catalogs, request for quotation, workflow, goods receipt and electronic payment and reports, SCS said.
SembCorp Industries, also part of the Singapore Technologies Group, will be the anchor tenant, which will provide critical mass and a guaranteed number of transactions for TX123, according to SCS.
The TX123 initiative underlines the emphasis Singapore companies are placing on the mundane but lucrative business-to-business e-commerce sector, rather than in business-to-consumer e-commerce.
Last September, Singapore Telecommunications Ltd. (SingTel), its IT subsidiary National Computer Systems Ltd. and Overseas Union Bank set up an e-commerce hub called Sesami.com that targets a similar group of trading companies as those being targeted by TX123.
The Singapore government has frequently stressed that the country as a whole needs to take a regional leadership position in e-commerce activities. The current president and CEO of SCS, Stephen Yeo, was until March last year the chief executive of the government's National Computer Board.
SCS can be found online at http://www.scs.com.sg.