S’pore SMEs can complement, not compete with, Asean neighbours, says panel
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Trade chamber leaders from Malaysia, the Philippines, Singapore, Thailand, Brunei and Indonesia at the SMEICC Conference on Sept 3 stressed the urgent need for regional collaboration on labour mobility, digital integration and aligned policies, such as Customs procedures.
ST PHOTO: GIN TAY
Follow topic:
- SCCCI survey shows 50% of Singapore firms increased globalisation efforts, up from 44% last year, focusing on Malaysia, China, Indonesia, Vietnam and Thailand.
- 75% of surveyed businesses expect profits in 2025, but 54% anticipate lower profits due to rising costs, talent acquisition and operational transformation.
- ASEAN panellists at the SCCCI conference urged regional collaboration on labour mobility, digital integration, and aligned policies, highlighting investment opportunities and cultural understanding.
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SINGAPORE – A darkening global trade order and the sparkle of South-east Asia’s rising economies may seem contradictory at first sight, but the twin forces are pushing businesses here to accelerate their drive into overseas markets.
Half of local firms have stepped up their globalisation efforts, up from 44 per cent in 2024, according to the latest annual survey from the Singapore Chinese Chamber of Commerce and Industry (SCCCI).
Malaysia, China, Indonesia, Vietnam and Thailand emerged as their key destinations.
SCCCI president Kho Choon Keng revealed the findings at the opening of the SME and Infocomm Commerce Conference (SMEICC) on Sept 3.
About 4,000 visitors, including local business leaders and government officials, as well as attendees from the region, are expected to attend the two-day event.
Mr Kho said: “Businesses are pivoting to South-east Asia to tap the market potential, source goods locally, and manage geopolitical risks to improve resilience.”
Overall, the survey of 711 respondents from June to August reveals their cautious outlook, he said. About 93 per cent of the respondents are SMEs.
While 75 per cent anticipate profits in 2025, 54 per cent foresee less profits than in 2024.
Top on the minds of these local business leaders are rising business costs, finding suitable talent and transforming their operations for growth.
The conference, being held at Suntec Singapore Convention and Exhibition Centre and organised by SCCCI, also featured a panel discussion. The panellists noted that while Singapore businesses see clear benefits to having collaboration with their Asean counterparts, they are anxious about competition within the bloc.
Comprising trade chamber leaders from Malaysia, Indonesia, Brunei, the Philippines, Thailand and Singapore, the panel urged businesses to overcome their hesitancy by working on complementary areas.
Singapore, for instance, should not compete with its neighbours in supplying low-wage labour, said Mr Lee Sze Leong, vice-president of SCCCI.
Mr Haryanto Adikoesoemo, vice-president of the Indonesian Chinese Entrepreneur Association, said some projects can be sourced upstream of the value chain in Indonesia because of the country’s rich raw materials, but finished downstream in Singapore.
With Asean projected to become the world’s fourth-largest economy by 2030, powered by its young, expanding middle class, panellists also stressed the urgent need for regional collaboration on labour mobility, digital integration and aligned policies, such as Customs procedures.
They each highlighted investment opportunities in their respective economies, ranging from artificial intelligence, infrastructure building and renewable energy, to education, tourism and medical services.
Citing Indonesia, Mr Adikoesoemo said: “Now, with the government policy of food self-sufficiency, we also need people who can help us with genome sequencing, for example, how to create a good seed that will produce better yield.”
Mr Yong Teck Foo, head of the National Chamber of Commerce of Brunei, encouraged businesses going to Brunei to start by knowing the culture.
The country of more than 450,000 people derives about half of its revenues from oil and gas, but in recent years, has pursued a diversification strategy that covers fisheries, e-commerce and digitalisation.
SCCCI president Kho Choon Keng at the SMEICC Conference 2025 at Suntec Singapore Convention and Exhibition Centre on Sept 3.
ST PHOTO: GIN TAY
He said: “If you know the culture, you know each other. Then in Brunei, business is very easy to do.”
Panel moderator Lee Huay Leng, who is also editor-in-chief of SPH Media’s Chinese Media Group, summed up the panellists’ wish list after asking them to identify opportunities and risks: political stability, a more seamless flow of talent within the bloc, and cultural understanding.
Special economic zones (SEZ), including the Johor-Singapore SEZ, were also cited as a potential area of stimulating cooperation.
Datuk Yap Heng Or, vice-president of the Associated Chinese Chambers of Commerce and Industry of Malaysia, said: “This special economic zone is timely. Yet, it is significant because it is a good test case. If it is a success, it will bring a lot more setting up of these zones within Asean.”
Both the Malaysian and Singapore governments would have to cooperate to make unified policies, he added, and offer incentives to get investors to participate in the free trade zone.
Despite geopolitical tensions and tariffs, and even with uncertainties at home, companies need to focus on getting business done.
Mr Prasong Owlarn, vice-president of the Thai-Chinese Chamber of Commerce, said: “In Thailand, I don’t know who is going to be the next leader. But we have faith. We know that whatever happens, we can have it solved, and we can do better next time.”
His advice to businesses: “Leave the politics aside, but concentrate more on the economy, on how we can help one another to create a more efficient market.”
