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Internationalisation push showing results: IE Singapore survey

SINGAPORE — More than half of Singapore companies surveyed recently by trade agency International Enterprise (IE) Singapore have made forays into China and Malaysia, generating revenue from these top overseas markets.

Singapore's Shopback is one of the companies that has made inroads into other countries such as Malaysia, the Philippines, India, Indonesia and Taiwan.

Singapore's Shopback is one of the companies that has made inroads into other countries such as Malaysia, the Philippines, India, Indonesia and Taiwan.

SINGAPORE — More than half of Singapore companies surveyed recently by trade agency International Enterprise (IE) Singapore have made forays into China and Malaysia, generating revenue from these top overseas markets.

Companies are also increasingly interested in Vietnam, Myanmar and India, the survey of some 700 companies found. Amid the Government’s push for companies to spread their wings abroad, the respondents’ overseas revenue grew 4.2 per cent last year compared to 2015, at a pace faster than total revenue growth (1.3 per cent).

The survey findings were released by IE Singapore in its year-in-review published on Thursday (Feb 16). The agency noted that internationalisation has become the key engine of growth for Singapore companies, with jobs created skewing towards positions for professionals, managers, executives and technicians (PMET). About six in 10 of “internationalisation-focused” jobs were PMET positions, compared to about five in 10 for domestic-focused jobs.

Singapore’s direct investments abroad (DIA) grew 2.5 per cent year-on-year (S$636.8 billion as of end-2015), with Asia accounting for the largest share at 54 per cent. DIA growth in 2015 was driven by Asia — in particular, emerging markets such as India, Vietnam and Myanmar. China, Hong Kong, Indonesia and Malaysia remain as the top investment destinations within Asia in 2015, IE Singapore said.

The agency added that companies also looked overseas for opportunities to transform their businesses, with many investing in establishing track record in new markets or new business segments, digital platforms and channels, and mergers and acquisitions.

IE Singapore said it facilitated over 450 projects globally last year, with a majority in China and Southeast Asia. About a third were projects that transformed the business of enterprises.

Homegrown startup ShopBack is among the companies that have ventured beyond Singapore’s shores. Less than three years after it was set up in Sep 2014, ShopBack now has footprints in six markets — Singapore, Malaysia, the Philippines, India, Indonesia, Taiwan — with over 100 employees regionally.

The company had received support from IE Singapore to break into the Indonesian and Taiwanese markets last year. The agency also helped connect the startup to Taiwanese e-commerce merchants and stakeholders, and supported its manpower development there.

Currently, almost 70 per cent of its sales (defined as sales channelled to ShopBack’s partners) are generated from places outside of Singapore.

Despite the stellar growth, the startup’s expansion journey is not without challenges, including finding the right talent. ShopBack co-founder Joel Leong said: “Consumer education is always one of the greatest challenges for ShopBack as the online cashback business model is relatively nascent in the region.”

The company taps on local talent in each of the markets, in order to cater to their unique needs.

"A strong local team helps us to build a strong market presence. However, as e-commerce is a relatively new sector in Southeast Asia, it remains difficult for us to find the right talent and fit for the company,” he said.

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