SINGAPORE: Singapore businesses are increasingly eyeing international expansion in 2024, with nearly 59% planning to extend their reach overseas, up from 57% in 2023.
The data, released in a recent survey by the Singapore Business Federation (SBF), highlights growing interest in Southeast Asia, with Vietnam and Indonesia leading as top destinations (25% each), followed closely by Thailand (21%).
Additionally, businesses are showing newfound interest in the Middle East, particularly the UAE and Saudi Arabia, as well as New Zealand.
However, enthusiasm for expansion into traditional markets has waned. Notably, Malaysia saw a 10% drop in interest, from 29% in 2023 to 19% in 2024, while China recorded a 5% decrease, with just 17% of Singapore businesses planning to enter or expand there this year.
The report also indicates a positive shift in international revenue. Around 32% of companies reported higher earnings from overseas operations in 2024, up from 22% the previous year. Moreover, the proportion of businesses generating more than 40% of their revenue internationally rose to 56%, a slight increase from 54% in 2023.
Looking forward, 56% of businesses expect international revenue to grow over the next 12 months, with only 6% anticipating a decrease. Alongside this optimism, 30% of businesses are planning direct investments in foreign markets to secure their foothold.
Despite the promising outlook, businesses face considerable hurdles. The most cited challenge is demand uncertainty, affecting 52% of companies, followed by geopolitical tensions (42%) and an unpredictable economic environment (38%). To navigate these obstacles, companies have expressed the need for stronger support in handling regulatory complexities (49%), accessing international resources (41%), and finding partnership opportunities abroad (41%).
Interestingly, while supply chain disruptions have decreased—from affecting 35% of businesses in 2023 to just 22% in 2024—logistical delays have emerged as a leading concern, impacting 57% of companies. To mitigate risks, many businesses are shifting strategies, focusing on diversifying suppliers and exploring new markets (55%) rather than renegotiating costs or adjusting logistics arrangements.
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