Trade tariffs and geopolitics: Singapore SMEs urged to step up globalisation, look at Asean and the rest of the world for opportunities

SINGAPORE – In the last six decades, Singapore gained tremendously from the rapid growth of America and the opening up of China but now, its long-held status as a beneficiary of globalisation is facing a crucial test, said Foreign Minister Vivian Balakrishnan.

In this new reality, Singapore businesses must step up on going abroad for fresh opportunities, broader markets and new supply chains, he said on Sept 3 at the start of the 28th SME and Infocomm Commerce Conference, or SMEICC.

Organised by the Singapore Chinese Chamber of Commerce and Industry, the two-day event at Suntec Singapore Convention and Exhibition Centre is expected to draw about 4,000 visitors.

Addressing delegates at the opening, Dr Balakrishnan outlined how, since independence, Singapore has thrived by linking itself to the world’s major economies.

He said: “The last 60 years we have had the best of both worlds. We were able to connect to the West, connect to the East and to connect within our own region in South-east Asia.”

But that world is now undergoing a major tectonic shift.

“What has been the best of both worlds is always in danger of becoming the worst of both worlds, if we get caught up wrongly between the sharpening rivalry. And a more fragmented world with fractured supply chains also makes doing business more difficult,” he warned.

Businesses today also face a storm of technological and digital revolutions, forcing constant adaptation.

“Our challenge is to get ahead of the curve, rather than be swamped by this tsunami of technological change,” he said.

Meanwhile, rising domestic political tensions pose another hurdle.

“If your home front is in trouble… every time it gets divided and polarised, it is just a step away from discrimination and challenges to ethnic multicultural harmony and solidarity,” Dr Balakrishnan stressed.

“As we navigate these challenges globally, regionally and domestically, we need to reimagine how we do business, how we connect with one another, and how we take advantage of the new technologies.”

Against this backdrop, he called on small and medium-sized enterprises (SMEs) to step up their efforts overseas and highlighted Asean’s potential.

With a population of about 700 million – more than half under the age of 35 – and a rapidly growing middle class, Asean is projected to become the world’s fourth-largest economic bloc by 2030.

“For the next 20 to 30 years, Asean is a very big opportunity, which we would be foolish to miss,” he said.

Dr Balakrishnan also pointed to opportunities in South Asia, the Middle East, Africa and Latin America, where the Government has paved the way for Singapore companies to expand abroad.

“We’ve done the travelling, we’ve done the signatures, but to be honest with you, we need the businesses to go there, knock on the open doors, establish the partnerships and networks,” he urged.

Noting that he was representing Prime Minister Lawrence Wong, who is in Delhi to meet Indian Prime Minister Narendra Modi, and Deputy Prime Minister Gan Kim Yong, who is in Beijing on official business, Dr Balakrishnan reassured business delegates of the Government’s commitment.

“The Government will stand shoulder to shoulder with all the SMEs,” he said.

AseanSME/Small and medium-sized enterpriseTrade

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