South-east Asia offers opportunities for squeezed Singapore firms, says head of SME body
Malaysia is one potential target amid an ‘increasingly difficult’ domestic business landscape
Singapore's small businesses may find growth opportunities in Southeast Asia due to domestic constraints, according to Ang Yuit, president of the Association of Small and Medium Enterprises. The local market is small and costs are rising, causing an increasingly difficult operating environment for SMEs, which are burdened by high staff and rental costs, as well as global energy price fluctuations and supply chain shocks.
While larger firms may benefit from trade tensions and technology opportunities, smaller businesses might see a reversal of fortunes. Competition for customers and talent is intense, and local SMEs are increasingly competing with international companies in the Singapore market. However, Singapore businesses still have access to opportunities in the region, such as Vietnam, Indonesia, and Malaysia.
The newly established Johor-Singapore Special Economic Zone offers a more integrated operating model for Singapore-based companies, thanks to its proximity, similar legal framework, and lower manpower costs. Internationalization can bring down business costs, grant access to new capabilities and supply chains, and allow for greater market diversification.
CLA Southeast Asia, formerly Nexia TS, is helping businesses navigate these opportunities by rebranding and launching a CLA Artificial Intelligence Centre of Excellence for Southeast Asia in partnership with industry leaders and educational institutions.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
