Government Assistance to Help Micro, Small and Medium Businesses Venture Overseas

Mr Thomas Chua Kee Seng asked the Minister for Trade and Industry (Trade) how can the Government better help the micro and small SMEs to venture overseas to tap a bigger market so that they can continue to grow.

Growth in Singapore’s services trade has outpaced that of goods in recent years. Between 2010 and 2015, services exports grew by a robust compound annual growth rate of 6.9%, compared to a 0.1% decline in goods exports. While services export growth has moderated since 2015, this was in line with the weakening global trade environment and largely attributable to the slowdown in segments supporting goods trade, such as freight services. Growth remained resilient in segments, such as insurance services, telecommunications, computer and information services, which continue to see regional demand.

Singapore has a broad network of free trade agreements and regional initiatives that help companies tap into external demand for our goods and services. For example, the ASEAN Economic Community (AEC) allows our services exporters greater market access to the ASEAN region with restrictions lowered in more than 80 services sectors. The AEC’s continuing efforts to facilitate, protect and liberalise cross-border investments enable our companies to venture into the region at lower costs and with greater assurance.

Singapore also has a suite of assistance schemes that help small and medium enterprises internationalise and trade with overseas markets. These include the Market Readiness Assistance (MRA) and the Global Company Partnership (GCP) schemes administered by International Enterprise (IE) Singapore. The MRA provides broad-based assistance to companies that are starting to internationalise, while the GCP provides targeted assistance to companies with a more established overseas presence. The GCP covers capability and manpower development, market access and financing. Over 80% of the beneficiaries of these assistance measures are SMEs.

The Government is also collaborating with trade associations and chambers to help SMEs prepare themselves for overseas opportunities. The IE-Singapore Chinese Chamber of Commerce and Industry Singapore Enterprise Centre (ISSEC) in Shanghai which is a joint initiative between IE Singapore and SCCCI is an example of such collaboration. Over the past three years, ISSEC has served more than 5,000 companies through outreach and advisory assistance, and provided research on emerging market opportunities in China. The companies assisted by ISSEC are predominantly SMEs and micro enterprises. ISSEC will be going beyond Shanghai to help such firms build up market expertise and capabilities in other parts of China.

IE Singapore also has an extensive network of Overseas Centres internationally that provides targeted assistance for companies in both developed and emerging markets. This includes helping them generate new business leads in Southeast Asian markets such as Indonesia and Myanmar, gaining entry as first movers in emerging markets such as Africa and Latin America, and identifying opportunities to enhance technology capabilities in developed markets such as the United Kingdom and United States.

Companies need the right talent to embark on internationalisation plans – people who have global mindsets, exposure to international business environments, in-depth understanding of industries, and the ability to navigate markets. To build a pipeline of global-ready Singaporeans for international roles, manpower development programmes are also in place. For example, IE Singapore's Young Talent Programme exposes students from universities, polytechnics and the Institutes of Technical Education to internship opportunities in overseas markets, and equips them with foundational skills needed for international careers. SkillsFuture Study Awards for International Business are also given out to prepare professionals, managers and executives for international roles through various courses, market attachments and customised overseas immersion programmes.