Backing Firms to Go Overseas, and Create Local Jobs
Singapore is intensifying its economic engagement with the Middle East, actively supporting more small and medium-sized enterprises (SMEs) as they expand into the rapidly growing markets of the Gulf region.
The Singapore Business Federation (SBF) established the Singapore Enterprise Centre in Dubai last year to provide crucial market advice, networking opportunities, and business-matching support for these companies. A core tenet of this expansion strategy, according to the SBF, is the creation of jobs within Singapore itself.
Recent enhancements to the Market Readiness Assistance (MRA) grant, unveiled during ‘s Budget announcement, will increase support for SMEs. From , the grant will cover up to 70 percent of eligible costs – a significant increase from the previous 50 percent – capped at S$100,000 per company per new market.
“With the market readiness assistant grant, we hope to get more companies to go overseas, and as they go overseas, they will likely generate jobs for Singaporeans in supply chain coordination, in business development and in regional operations,” said Kok Ping Soon, CEO of the SBF.
While quantifying the exact number of jobs created remains challenging, Mr. Kok noted that the SBF facilitated approximately 200 overseas projects last year. “Each of these companies typically needs about two to three Singaporeans for a start to explore some of these opportunities,” he added.
However, Mr. Kok emphasized that the objective of overseas expansion extends beyond simply placing Singaporean workers abroad. The ultimate goal is to foster growth in international operations in a manner that generates more employment opportunities back home in Singapore.
This push for internationalization comes as Singapore looks to diversify its economic partnerships and navigate a changing global landscape. According to a report by the Strait Times from , Foreign Minister Vivian Balakrishnan urged Singaporean SMEs to accelerate globalization efforts, citing the need to secure new markets and supply chains amid shifts in the global economy.
The focus on the Middle East aligns with broader trends highlighted in recent reports. Channel NewsAsia reported on that Singapore is stepping up its economic engagement with the region, recognizing the potential of the fast-growing Gulf markets. This increased engagement is not solely focused on the Middle East, with opportunities also identified in South Asia, Africa, and Latin America, where the government has already laid the groundwork for Singaporean companies to expand.
The SBF’s efforts are exemplified by the experience of Singaporean entrepreneur Andrea Lim, who successfully expanded her art studio, Wild Paint House, to Dubai. Lim’s story, as reported by Channel NewsAsia, illustrates the potential for Singaporean SMEs to thrive in new markets, benefiting from lower operating costs and increased consumer spending power.
The government’s commitment to supporting overseas expansion is further underscored by the enhancements to the MRA grant, signaling a proactive approach to ensuring Singapore’s continued economic competitiveness and job creation in a dynamic global environment. The initiative aims to not only bolster the international presence of Singaporean businesses but also to translate that success into tangible benefits for the domestic workforce.
Alongside the focus on the Middle East, Singapore is also actively pursuing trade deals and strengthening ties with other key regions. A recent trade agreement with Indonesia, finalized on , demonstrates the country’s commitment to diversifying its economic partnerships and creating new opportunities for its businesses.
