75% Singapore businesses benefit from free-trade agreements when entering new markets: Survey

SINGAPORE: A recent survey by the Singapore Business Federation has stressed the significant advantages that free trade agreements (FTAs) provide to local companies venturing into international markets.

According to the survey, which encompassed over 800 businesses across the financial, manufacturing, and retail sectors, approximately 75% of these companies reported tangible benefits from the convenience afforded by FTAs.

The survey carried out in the final quarter of the previous year reveals a notable improvement in companies’ understanding of FTAs.

The business comprehension rate has surged from 62% in 2021 to 85% in the past year, reflecting a deeper awareness and better grasp of the agreements’ implications and opportunities.

Despite these positive trends, some businesses still grapple with the practicalities of FTAs. 43% of the surveyed companies indicated that the terms of the agreements hold no relevance to their operations.

Additionally, 25% of respondents admitted to not fully understanding the content of the agreements, highlighting ongoing gaps in awareness and engagement.

This survey provides a comprehensive overview of how local companies navigate the complexities of international trade and the varying degrees of benefit they are experiencing from current trade policies. /TISG