Prepare for overseas expansion during these volatile times, DPM Gan tells Singapore companies

DPM Gan, who is also Minister for Trade and Industry, cited Singapore’s investments in Latin America, China and the US as being crucial to its access to much larger economies. “This would create stability and allow Singapore to sail through this period of uncertainties in a stable manner.”

He added that an overseas expansion strategy is a long-term process that could take years, so companies would need to start identifying potential markets and competitive sources of supplies.

Having an eye on the future now gives companies a head start and puts them in a stronger position to expand once the global situation has recovered.

“We need to address the immediate crisis, no doubt about that, but we must not lose sight of the longer-term strategy. Otherwise, after the crisis is over, we realise we are back to square one. We will take two steps back and then we lose the opportunities,” DPM Gan cautioned.

He also noted that overseas expansions carry their own challenges, as companies could find it difficult to operate in a foreign environment and find local partners to develop their businesses further.

They can tap a “toolbox of schemes” by the Government to support their internationalisation needs end to end, DPM Gan said.

Overseas expansions and investments would not only strengthen companies based in Singapore with better job creation, but also open up opportunities for Singaporeans to work overseas.

In his Budget speech on Feb 12, Prime Minister Lawrence Wong, who is also Finance Minister, announced a slew of measures to help companies venture overseas, including higher levels of support for them to internationalise.

These include a 40 per cent rebate on corporate income tax; increased support for grant schemes that help companies go international; and the enhanced Market Readiness Assistance grant to support companies in accessing new markets and deepening activities in existing overseas markets.