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SINGAPORE: Homegrown snack company The Kettle Gourmet is taking its distinctly local flavours beyond Singapore\u2019s shores, expanding into markets such as Malaysia, the Philippines and China.<\/span><\/p>\n But like many local lifestyle brands, its plans to go abroad are increasingly being tested by the rising cost of doing business.<\/span><\/p>\n Material costs \u2013 such as plastic, which is primarily made from petroleum \u2013 have surged by around 60 per cent in the past month, driven in part by the ongoing conflict in the Middle East.<\/span><\/p>\n Shipping delays and higher freight rates are adding further strain, squeezing profit margins.<\/span><\/p>\n The Kettle Gourmet<\/span>, which specialises in gourmet popcorn, is now hoping for more government support to sustain its expansion.<\/span><\/p>\n Its chief financial officer Chan Zi Wei noted that the coverage from grants like those from Enterprise Singapore has dipped from about 70 per cent to 50 per cent.<\/span><\/p>\n \u201cExpanding overseas is not actually not very cheap – so the investment we get to put in is actually pretty high, especially the marketing cost,\u201d Mr Chan said.<\/span><\/p>\n He pointed out that the company needs support in terms of cash flow, as approval for claims can take up to six months to a year.<\/span><\/p>\n \u201cI think for us, mainly, is the delay in grants that \u2026 makes it a bit tough in terms of cash flow,\u201d he added.<\/span><\/p>\n \u201cAlso, for example, capital investment in manufacturing is usually pretty high, so we do hope that sometimes (we can get) a progressive kind of disbursement rather than waiting for a few months after getting approval to get the amount.\u201d<\/span><\/p>\n Nevertheless, he said schemes like the <\/span>Double Tax Deduction for Internationalisation Scheme, where companies planning to expand overseas can claim a 200 per cent tax deduction on qualifying expenses, have helped to cushion the impact of rising costs.<\/p>\n<\/div>\n