Singapore companies with overseas presence perform better
Singapore companies operating in international markets are reporting better results, with both profit and revenue trending up, compared to those concentrated in the domestic market, according to reports released by Regus Global Survey, which polls over 12,000 companies globally.
"This report provides hard evidence that in the current economic climate, Singapore firms that have diversified overseas are faring better than those who have stayed with their home markets," said William Willems, Regional Vice President for Regus Australia, New Zealand and Southeast Asia.
The findings indicate that foreign expansion is good for business and should be urgently considered by domestically-focused companies who are keen on climbing the ladder in competitive markets.
According to the survey, 87 percent of the companies polled, which are already operating internationally, said they intend to expand further, while only 77 percent of the companies operating locally said they intend to expand overseas over the next few years.
53 percent said the biggest obstacle to overseas expansion is the challenge of establishing a physical presence in a foreign country. Meanwhile, 75 percent of the companies also said that property commitments have to be very short term when establishing foreign operations, as they do not know how quickly or slowly they will grow.
"While 'property' and 'people' are perceived as potentially major challenges, the wide availability of flexible workspace options around the globe make the 'property' element more perception than reality," Willems said.
"The 'people' issues however do require very considerable judgment," he said. "Decisions about whether to install a local manager or install one from the mother country are critical and, we believe, rest heavily on whether sales are mainly being handled through a few major distributors, or whether direct contact with a wide range of customers is required."
Regarding export-led growth in leading markets, Willems said the only exception amongst the world's major economies is China.
"Here, state-sponsored infrastructure investment and development is providing disproportionate domestic market opportunity for Chinese firms." Related stories Global Logistic and FNN to shine this year, says bank
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