MORE businesses ran up higher sales in their overseas markets in 2024, with nearly a third (32 per cent) of them reporting growth, up from 22 per cent in 2023.
The report of a survey by the Singapore Business Federation (SBF), released on Thursday (Nov 14), said this contributed to a rise in the proportion of businesses with at least two-fifths of sales from overseas sources – 56 per cent in 2024, from 54 per cent in 2023.
There was also a slight rise in the number of businesses planning future overseas expansion, 59 per cent, up from 57 per cent in the year before.
Vietnam and Indonesia were cited as the top markets of interest, with each cited by 25 per cent of the companies that took part in the survey. Thailand came in at 21 per cent.
Interest in expanding to Malaysia fell by 10 percentage points to 19 per cent year on year, while interest in China went down by 5 percentage points to 17 per cent.
While interest in expansion within Asean remains strong at 63 per cent, more businesses are now open to exploring markets further afield, including the United Arab Emirates (up 7 percentage points to 14 per cent) and Saudi Arabia (up 6 percentage points to 11 per cent).
A NEWSLETTER FOR YOU
Friday, 8.30 am
SGSME
Get updates on Singapore’s SME community, along with profiles, news and tips.
Looking ahead, 56 per cent of businesses expect positive growth in overseas sales over the next 12 months; 6 per cent are anticipating a decline.
Kok Ping Soon, chief executive officer of SBF, said: “It is heartening that despite the uncertainties in the external environment, more businesses are considering overseas expansion and expect growth in sales in the next 12 months. It reflects the resilience of our businesses and their recognition that scaling internationally is critical for their growth.”
He added that SBF, the nation’s apex business chamber, was ready to help businesses seeking “actionable support” to navigate regulatory challenges, understand new markets, and to secure local partners.
Top deterrents to overseas expansion were uncertainty in demand (cited by 52 per cent of the respondents), geopolitical tensions (42 per cent), and an unpredictable operating environment (38 per cent).
The SBF survey, carried out between Aug 28 and Oct 29, polled 519 Singapore businesses. More than eight in 10 (87 per cent) were small and medium-sized enterprises, and the rest, large companies.
Among the companies that took part in the survey, 71 per cent had an overseas presence. Malaysia (63 per cent), Indonesia (49 per cent), and China (46 per cent) were the top three established markets.
