SINGAPORE - Two out of three of Singapore's top 50 fastest-growing companies in 2018 come from experienced companies aged 10 years and above - up significantly from 44 per cent in 2017 and 52 per cent in 2016, according to rankings from DP Information Group.
The Fastest Growing 50 Companies in Singapore (FG50) list identified 50 Singapore-registered companies with the highest compounded annual growth rate (CAGR) for the last three years.
A strong focus on innovation, diversification and internationalisation were cited as key differentiators of this year's list, said James Gothard, general manager, Credit Services & Strategy SEA of Experian, the parent company of DP Info.
"Our rankings consider the financial results of Singapore-registered companies in the past three years, and we're seeing consistent and phenomenal growth rates from older companies even in the midst of international competition and economic headwinds," he said.
Companies in this year's list that have invested in innovation to drive long-term growth include J&S Telecoms International, a 15-year-old Singapore-founded technology service and solutions provider. They launched a distribution company to sell and distribute consumer products in Singapore, tapping their core expertise in telecommunications to reduce or alleviate harmful electromagnetic radiation in offices and homes. They are also in talks with global strategic partners to develop new telecommunications software and products.
Global technology companies such as geospatial solutions provider UniStrong Technology, a subsidiary of Beijing-based Global Navigation Satellite System pioneer Beijing UniStrong Science & Technology Co, and network security appliance provider Fortinet Singapore Private Limited, have also set up innovation centres in Singapore to develop their technical expertise and products for a global market. These initiatives, among others, resulted in UniStrong increasing their revenue almost three-fold, and Fortinet about 3.5 times, since 2014.
This year also saw an increase in the number of Investment Grade (DP1-4) companies, with 33 of the 50 (or 66 per cent) listed as Investment Grade compared to 48 per cent in 2017 and 56 per cent in 2016.
The number of companies achieving the highest DP1 credit rating this year has also doubled to 15 firms from seven in 2017.
A higher DP credit rating is an indicator of a lower risk of default, showcasing a company's financial and credit worthiness.
DP Info has been compiling the FG50 annually since 2002, and analyses the financial results of more than 70,000 companies to recognise Singapore's 50 most dynamic and fastest-growing companies.