This would involve the 'formation of strategic alliances which allow the pooling together of resources' - an 'especially relevant strategy for companies to lower costs', he added.

Mr Verghese, also chairman of International Enterprise (IE) Singapore, was speaking at the inaugural IE Partnership Seminar 2009, where the trade promotion agency also signed Memorandums of Understanding (MOUs) with seven industry partners.

The aim of the MOUs is to help Singapore-based companies expand overseas despite the downturn.

Citing the Ministry of Trade and Industry's latest forecast for the Singapore economy - which is expected to contract between 5 and 2 per cent this year - Mr Verghese concurred: 'The outlook does appear grim, but let me not add to the gloom.'

Instead, he emphasised the need for Singapore companies to strengthen their domestic competitiveness and to 'uncover pockets of opportunities in the midst of crisis'.

Such pockets still exist in markets in the Middle East and Africa, North Asia Pacific, India, China and Europe, he said.

The seven MOU partners are: the Singapore Business Federation, the Association of Small and Medium Enterprises, the Singapore Chinese Chamber of Commerce and Industry, the Singapore Indian Chamber of Commerce and Industry, the Singapore International Chamber of Commerce, the Singapore Malay Chamber of Commerce and Industry, and the Singapore Manufacturers' Federation.

The collaborations between IE Singapore and these business groups will lead to, among other things, financial assistance programmes, support for overseas trade fairs, help in forming international partnerships between firms and easy access to overseas market intelligence.

As part of such initiatives, IE has also set aside $30 million for a programme to help companies boost their manpower, branding and intellectual property capabilities.

Mr Verghese pointed out: 'While the more developed economies will face negative growth in 2009, many developing nations and emerging markets continue to show good potential for growth.

'In order to succeed overseas, companies need to be conscientious in building up their understanding of their target markets.'

Meanwhile, HSBC economist Prakriti Sofat, who also spoke at the seminar, predicted that Asia may be headed for its 'biggest-ever export crash.'

She said real exports - that is the volume, not value, of exports - will shrink by 10 per cent in the coming year.

'Export growth is going to be worse than 2001 and in 1998. It?s going to get quite terrible, to be honest,' she added.

But Ms Sofat was quick to add that Asia is well-positioned to 'bounce back very quickly' for a V-shaped recovery late this year, because the 'fundamental problem is not in Asia'.