Singaporean SMEs Globally Least Optimistic on International Expansion Amid Risks
Singaporean SMEs are globally the least optimistic regarding international expansion, rating their outlook 7.2/10 against a global 8.2, a Kreston Global survey reveals. Geopolitical instability is their top concern (52%). Despite this, 66% foresee improved conditions within 2-3 years, though less than global peers, reflecting Singapore's trade-dependent economy navigating global disruptions.
Key points
- A survey by international accountancy network Kreston Global revealed Singaporean small and medium-sized enterprises (SMEs) are the least optimistic globally about overseas expansion.
- Singaporean business leaders rated their optimism for international growth at 7.2 out of 10, significantly lower than the global average of 8.2.
- Geopolitical instability emerged as the primary concern for Singaporean SMEs, cited by 52% of respondents, the highest proportion among all markets surveyed; supply chain disruptions and tariff-related cost increases were also significant concerns for 43% and 42% respectively.
- Helmi Talib, managing partner at Kreston Helmi Talib, noted that Singapore's economy, being heavily reliant on trade, is particularly susceptible to global uncertainties.
- While 66% of Singaporean respondents anticipate improved conditions for international business expansion in the next two to three years, this figure remains below the 86% recorded among their global counterparts, indicating a more cautious future outlook.
A recent global survey conducted by Kreston Global, an international accountancy network, has highlighted a distinct lack of optimism among Singapore's small and medium-sized enterprises regarding international expansion. The report, revealed on Thursday, shows Singaporean business leaders rated their outlook for overseas growth at just 7.2 out of 10, falling significantly below the global average of 8.2. This makes them the least optimistic cohort globally.
Driving this cautious sentiment are pervasive geopolitical and economic uncertainties. Geopolitical instability was identified as the top concern, cited by 52% of Singaporean respondents – the highest percentage across all surveyed markets. Supply chain disruptions (43%) and increased costs due to tariffs (42%) also ranked high among their worries. Helmi Talib, managing partner at Kreston Helmi Talib, underscored that Singapore's trade-dependent economic structure makes its businesses particularly vulnerable to such global disruptions, leading to a more conservative stance on international growth.
Despite the current apprehension, a majority of Singaporean SMEs, 66%, still anticipate that conditions for international business expansion will improve over the coming two to three years. However, this figure is notably lower than the 86% recorded among their global counterparts. This suggests that while there is an underlying ambition for international growth, Singaporean firms are adopting a more selective and cautious approach to global ventures in the face of ongoing international challenges.
Sources
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