‘You must diversify’: Overseas expansion no longer optional amid uncertainty, says SBF chief

Singapore Business Federation (SBF) chairman Mark Lee has emphasized the necessity for companies to diversify their operations amid uncertain global business conditions. In an interview on August 3, Lee urged businesses to "double down on diversification" in light of US tariffs and regional conflicts such as those in the Middle East.

Lee, chief executive of Sing Lun Group, has firsthand experience of the advantages of expanding overseas. In the early 2000s, his family-owned business, primarily manufacturing textiles for international brands like Gap, faced mounting competition due to China's imminent World Trade Organization membership. To address this, Lee pushed for diversification, expanding the company's manufacturing footprint to Vietnam, Cambodia, and China.

He explained that this diversification was necessary to mitigate the intense competition and dilute manufacturing costs.

Lee also faced the consequences of not diversifying during the 2009 global financial crisis. A major client, responsible for 40% of Sing Lun's profits, terminated its business relationship. Consequently, Lee was forced to close factories in Malaysia and Singapore, realizing the critical importance of customer diversification. Five years later, the client did return, but Lee stressed that businesses must diversify their markets and supply chains to avoid sudden financial ruin.

In Parliament on August 4, Lee reiterated this message, advocating against protectionism despite acknowledging that supporting local businesses venturing overseas could lead to increased competition from foreign firms at home. He cited a study conducted by the business chamber, the Restaurant Association of Singapore, and the Singapore Retailers Association, which projected that Singaporeans would spend $1.05 billion more annually across the Causeway after the RTS Link begins operation in January 2027.

Lee emphasized that the response to this competition should not be to prevent people from crossing the border, but to empower Singaporean companies to compete effectively.

Since 2026, the SBF has supported 79 Singaporean companies in 108 projects across 44 overseas markets, aligning with the government's push for businesses to internationalize in a volatile operating environment. Lee was elected as SBF's chairman for the 2026 to 2028 term in June, succeeding Teo Siong Seng, who declined to run again amid accusations of price fixing by the US Department of Justice.

Lee stated that the allegations have not led to an internal review at the SBF or affected its operations. He expressed optimism about the potential of initiatives like the RTS Link to spur the Singapore economy, including recommendations to reinvent night-time offerings to boost tourist spending and length of stay.