3 in 10 businesses gain higher sales in their overseas markets in 2024

SINGAPORE: This year, more businesses reported higher sales in their overseas markets, with over 3 in 10 (32%) experiencing growth, compared to 22% the year before.This is part of a broader trend, as 56% of businesses now get at least 40% of their sales from international markets, up from 54% in 2023, The Business Times reports.

The survey, conducted by the Singapore Business Federation (SBF) and released on Thursday (Nov 14), also found a slight increase in the number of businesses planning to expand abroad. This year, 59% of businesses intend to grow internationally, up from 57% in 2023.

Vietnam and Indonesia were the top destinations for expansion, with 25% of businesses looking to enter those markets. Thailand was also popular, with 21% of companies planning to expand there.

Interest in other markets, however, showed some decline. Malaysia, which has long been a key market for Singapore businesses, saw a drop in interest, down 10 percentage points to 19%. Interest in China also dropped by 5 percentage points to 17%. Despite this, 63% of businesses are still focused on expanding within ASEAN countries.

Some companies are also looking beyond Southeast Asia. Interest in the United Arab Emirates (UAE) grew by 7 percentage points, reaching 14%, while Saudi Arabia saw a rise of 6 percentage points to 11%.

Looking ahead, 56% of businesses expect their overseas sales to grow over the next 12 months, while 6% expect a decline.

Kok Ping Soon, CEO of SBF, said the survey results reflect the resilience of Singapore businesses, noting that more companies are recognising the critical role of international expansion in a company’s growth. He  stated that SBF is ready to help businesses navigate regulatory challenges, understand new markets and secure local partners.

While many businesses are confident about international growth, the survey revealed that the biggest concerns for expansion include uncertainty in demand (52%), geopolitical tensions (42%), and an unpredictable business environment (38%).

The survey, conducted between Aug 28 and Oct 29, gathered responses from 519 businesses in Singapore, including small and medium-sized enterprises (SMEs) and large companies.

Among the respondents, 71% had an overseas presence, with Malaysia (63%), Indonesia (49%), and China (46%) being the most common markets. /TISG

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