IN A small village next to the Mediterranean Sea live 22 Singaporeans.

They are employees of local water treatment company Hyflux, which is building the world's largest seawater desalination plant in the village in Algeria.

The village is in Souk Tleta, near the Algerian border with Morocco.

It is a long way from Singapore, but local companies such as Hyflux are growing and flexing their muscles abroad, Prime Minister Lee Hsien Loong said in his National Day Rally yesterday.

He was giving an example of how some Singapore companies are doing well despite the downturn.

Relating his exchange with a Hyflux engineer last month, Mr Lee said he found out that the company was seeking new business opportunities to build water facilities all over the world.

He asked which was the most challenging project, and the engineer replied that it was the one in Algeria.

It is 'in the middle of nowhere', said Mr Lee, showing a picture of the remote village. 'The nearest town is three hours' drive away on a bad road.'

The 22 Singaporeans - including two women - live in dormitories, and play basketball and computer games for leisure.

'There is no alcohol,' he added, as Algeria is a Muslim country.

But the hardship is worth it.

'Because of this and other projects, Hyflux is doing well and hiring engineers,' he said.

'It shows there is work to be had, if we are prepared to rough it out.'

SUE-ANN CHIA

This article was first published in The Straits Times.