IE S’pore gives a leg up to 28,000 firms eyeing overseas expansion
IE Singapore CEO Teo Eng Cheong. Photo: IE Singapore
SINGAPORE — More local companies are exploring overseas opportunities despite the headwinds from global economic uncertainty, International Enterprise Singapore (IE Singapore) said today (Feb 16), forming linkages that will help create jobs for Singaporeans and contribute to growth.
IE Singapore helped 28,000 companies last year, up by 5 per cent from the previous year, with the bulk of them – 80 per cent – made up of small and medium-sized enterprises (SMEs). Of the total, 20,000 were preparing for internationalisation, making general enquiries and seeking advice; while 4,000 were taking their first steps venturing abroad, including getting grant support using schemes such as the market readiness assistance programme.
The other 4,000 companies were already overseas, getting a leg up from IE Singapore with the Global Company Partnership (GCP) Grant Support and other schemes such as double tax deduction. A total of 342 projects were facilitated across a wide range of sectors, such as food, retail, infrastructure, environmental services and consumer technology. Over S$44 million was approved in grants, with IE Singapore also helping companies secure S$756 million in trade and financing loans and S$2.3 billion in insured amounts.
IE Singapore noted that even as more companies seek to venture abroad, already about 50 per cent of SMEs have overseas revenue.
A local company that has expanded with assistance from IE Singapore is online ecommerce store Love, Bonito (www.lovebonito.com). The company grew its overseas operations from 2013 to 2014, doubling staff headcount from 20 to 40 after it set up brick-and-mortar retail stores in Malaysia.
“We felt that it was a natural progression to move onwards to overseas expansion, and IE Singapore helped us greatly by providing us contacts on the ground – public relations, marketing, manufacturing and branding companies that smoothened the transition for us when we wanted to expand into Malaysia,” said Ms Viola Tan, co-founder of Love, Bonito.
Despite the uncertain global economic conditions, IE Singapore noted that the business landscape remains stable in Asia.
“Businesses are generally optimistic about the leadership of large markets, such as China, India and Indonesia. Moreover, opportunities continue to arise from strong trends in developing markets such as the growing middle income group, urbanization and adoption of new technologies, especially info-communications technology,” IE Singapore said.
IE Singapore said it would continue to enhance the current schemes such as the GCP grant and Market Readiness Assistance scheme and work with trade associations and chambers to help companies as spread their wings abroad.
“This is the time for Singapore companies to go overseas. By expanding abroad, not only can they be more productive, they can also develop new capabilities, new track record and global branding that enable them to compete on the global stage,” said Mr Teo Eng Cheong, Chief Executive Officer for IE Singapore.
