Progress and Challenges of Facilitating Singapore Companies' Expansion into ASEAN
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the progress and challenges of assisting Singapore companies in their expansion into the ASEAN region, as raised by Mr Desmond Choo. Minister for Trade and Industry Gan Kim Yong highlighted that trade with ASEAN grew to $295.6 billion in 2023, while Singapore's investment increased to $226.1 billion by 2022. He identified primary obstacles as demand uncertainties, unpredictable business environments, manpower shortages, and high internationalisation costs. Enterprise Singapore addressed these by supporting 2,000 projects in 2023, leveraging its network of eight regional Overseas Centres to connect businesses with opportunities. Collaborative efforts like GlobalConnect@SBF further assisted companies, providing hundreds of advisories and facilitating over 100 regional business projects since November 2022.
Transcript
19 Mr Desmond Choo asked the Minister for Trade and Industry (a) what has been the progress of helping Singapore companies to expand into ASEAN; (b) to date, how many companies have since expanded into ASEAN with the assistance from Enterprise Singapore; and (c) what are the challenges faced by companies which the Ministry has identified when helping them to expand into ASEAN.
Mr Gan Kim Yong: The ASEAN region is an important market for our Singapore companies. Singapore's trade and investment with ASEAN countries have registered double-digit growth over the past five years. In 2023, the total trade between Singapore and our Southeast Asian neighbours collectively stood at $295.6 billion, a 14% increase from 2019.1 Singapore's Direct Investment Abroad (DIA) into the ASEAN region also increased 37%, from $164.6 billion in 2018 to $226.1 billion in 2022.2
In 2023, the Singapore Business Federation (SBF) surveyed companies regarding the challenges they faced in doing business in the ASEAN region. The most commonly cited challenges were: (a) uncertainties about demand; (b) unpredictable business environment; (c) lack of suitable manpower to develop overseas markets; and (d) the costs involved in internationalisation.
Enterprise Singapore (EnterpriseSG) has a wide range of tools to help Singapore companies facing these challenges. In 2023, EnterpriseSG supported some 2000 projects from companies seeking to expand into ASEAN markets. This was an increase from around 700 projects in 2019.
EnterpriseSG also has a network of over 35 Overseas Centres around the world, including eight in the ASEAN region. These centres help to connect Singapore businesses with in-market opportunities and partners. Furthermore, EnterpriseSG works closely with our trade associations and chambers to leverage their network and industry expertise. For instance, EnterpriseSG partners with the SBF on GlobalConnect@SBF, which has provided close to 550 advisories and facilitated over 100 business projects for enterprises in the region since November 2022.