Singapore SMEs gain edge in global expansion

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This matters because Singapore companies often have to venture abroad earlier than firms in larger economies due to the city-state’s limited domestic market.

He likened the situation to “a plane taking off from a (short) runway”, where businesses must compete internationally sooner with companies that have grown within much larger home markets.

Aside from the trust premium, Siow said Singapore also benefits from its role as a connector for flows of capital, goods, intellectual property and knowledge. Companies that position themselves within these global flows stand to benefit, he added.

In future, he said, new types of flows – including data and energy – will become increasingly important.

“We have to continue to position Singapore at the centre of these flows,” he said.

“The key is what our companies do – whether they can seize enough business in these sectors, locate in Singapore, and make sure that these flows pass through Singapore.”

Government as a partner

To help SMEs seize these opportunities, Low said the government has strengthened support for companies looking to expand overseas through various internationalisation schemes.

Under the Business Refresh Package announced during the Ministry of Trade and Industry’s Committee of Supply debate on Mar 2, support levels for internationalisation initiatives have been raised from 50 per cent to 70 per cent, reducing the upfront costs companies face when entering foreign markets.

That package includes enhancements to the Market Readiness Assistance Grant, which helps firms defray costs related to overseas expansion. Previously limited to companies entering new markets, the scheme can now also be used by businesses seeking to deepen their presence in existing overseas markets.

Low highlighted other schemes firms can tap, including the Business Adaptation Grant, which provides assistance for companies affected by US tariffs to adapt business operations and strengthen supply chain resilience, and the Global Innovation Alliance programmes, which aim to connect Singapore-based startups and tech SMEs with global innovation hubs.

These internationalisation schemes, said Low, mean there is less cash and capital outlay for SMEs.

“It also means that the government is seriously your business partner when you go overseas. We, in a way, de-risk the process a little bit,” said Low.

Be deliberate about global expansion

While support is available for firms to tap, the two business leaders on the panel said SMEs must also be deliberate in how they approach overseas expansion.

Nam said: “To go global, you have to be very intentional and purposeful about who you want to work with from day one. You also need to have a team that is very clear about the corporate culture you want.”

But intention alone is not enough, Wines said, adding that firms also need strong visibility over their business performance before committing to overseas expansion, particularly as markets become more volatile and complex.

Businesses should ensure their systems and tools give them a clear view of their operations so they can respond quickly to changes and scale effectively, she said.

To do so, companies have to use data as a “strategic advantage”, Wines added. Businesses must first ensure their data is digitalised and accessible so it can inform decisions on expansion, investment and new opportunities.

“You can’t make those decisions (to go global) based on what’s in your bank account. You have to know what your business is doing at a deep level, and that all sits in the data,” she said.