Singapore firms expand globally: EnterpriseSG reports surge in overseas growth initiatives
More Singapore firms are looking overseas for growth, says EnterpriseSG.
Many Singaporean companies entered new overseas markets for the first time in 2023 since pre-pandemic times.
Peter Ong, chairman of Enterprise Singapore (EnterpriseSG), said that this trend will continue for the long term and that companies will continue to heed the agency’s call to make up for lost time during COVID-19 and expand beyond Singapore’s shores.
In 2023, the number of companies entering new markets for the first time increased by 66% compared to 2019. Many companies began to increasingly realize that there was no choice, and it was better for them to leave the local market.
Ong said the domestic market is very small for many companies, so going overseas is the only way for companies to grow in size and scale. He added that such companies need economies of scale, and the innovation costs need to be spread across a large market.
However, going abroad can be a big challenge for companies, as many of them are still young, do not have many resources and directors are less experienced. He highlighted the stark contrast between the business environment in Singapore and other countries, where innovation and adaptation are required almost immediately after leaving Singapore’s airspace. This challenge is worsening by an increasingly complex global business environment characterized by constant disruption caused by political, technological, economic and environmental factors.
The goal of EnterpriseSG is to ease the path for companies facing these challenges. The agency matches them with larger business partners or even opens pop-ups so smaller companies can test the market.
EnterpriseSG has extended its Global Innovation Alliance from 2019 by introducing supplementary accelerator initiatives aimed at linking Singaporean businesses with prominent innovation centers and crucial markets across 21 cities, including China, Indonesia, India, Japan, the United States and the United Kingdom.
Ong expressed confidence that Singapore companies will continue to have a good reputation abroad even in an uncertain business environment.
“We have to operate on the basis that the world remains free and open for anyone that wants to do cross-border flows and transactions, but we cannot assume that will continue. We will definitely want to join forces with like-minded countries to keep drumming home the point that we need an open system for all countries to co-prosper,” he said.
He also added that Singapore companies are treated favorably as they are perceived as neutral and reliable parties for partnership.
Since its establishment in 2018, EnterpriseSG has fostered various programs such as Scale-Up, aimed at aiding companies in rapid expansion. Currently in its ninth cohort, the program boasts 92 participating companies. Notably, the top three groups comprising 47 companies have achieved an impressive average revenue growth of 68% within two years of program enrollment. Companies have also been encouraged to use digital solutions at the time of opening the shop floor so that they can improve their productivity.
The pandemic has forced EnterpriseSG to focus on economic sustainability. During this period, companies were forced to rapidly adopt digital technologies as the agency helped connect more than 10,000 food and beverage, and retail companies to e-commerce and delivery platforms.
Despite the ongoing challenges and companies needing to adapt to new technologies such as artificial intelligence and seize opportunities in the climate space, Ong is looking forward to growth.
The outlook for Singaporean firms appears promising. Ong envisions a future where more local firms establish themselves in the global market, offering competitive and innovative brands and services. This trajectory not only signifies economic growth but also promises enhanced employment opportunities for Singaporeans.
