The Big Read: COVID-19 threw off homegrown firms’ overseas push. Can they now reap post-pandemic dividends?

For instance, Inspire-Tech, the software company, had expanded into the UAE before the pandemic. Ms Teo, Inspire-Tech’s co-founder, said that while the Middle East may be “remote in our Singaporean minds”, it is in fact a region that has undergone rapid digitalisation and economic growth for the past decade, with its progress “comparable” to that of Singapore. 

The UAE surpasses Singapore in certain aspects of digitalisation. For instance, electric vehicles are more widely adopted in the UAE than here, said Ms Teo. “We notice that these markets in the Middle East are emerging, they are digitalising quite rapidly,” she said. 

To further the firm’s reach in the region, it is also having talks with partners in Saudi Arabia to discuss the possibility of expanding there. The Saudi Arabian market is larger and also fast emerging. “It takes courage and a certain risk mindset to dare to go to emerging markets,” she said. “The first-mover advantage and being willing to try new markets are important.” 

Agreeing, Mr Tan from ESG said that Singapore firms are encouraged to “explore less traditional markets in order to diversify their growth and revenue sources”. 

In 2021, the Africa Singapore Business Forum organised by ESG saw over 2,000 business and government leaders attend virtually to explore partnerships and growth opportunities, Mr Tan said. This resulted in 18 new agreements signed between Singapore companies and African partners, with almost half of them being technology related.

“Emerging markets like Africa and Latin America offer promising growth potential in sectors like lifestyle and consumer, infrastructure, and logistics,” he said. 

For instance, Africa’s rapid digitalisation and urbanisation efforts present new opportunities in sectors such as edtech, fintech and urban solutions, while Latin America’s growth in its manufacturing capabilities has opened doors for “greater collaboration and supply chain diversification”.

“Singapore businesses stand to gain first-mover advantage if they can successfully adapt their offerings and act fast to capitalise on opportunities that arise in tandem with their developmental needs and consumption characteristics,” said Mr Tan. 

“BITE THE CHERRY FAST”

With pent-up demand waiting to be released as economies around the world recover from the worst of the pandemic, the need for Singapore firms to go international has acquired even greater importance and urgency, business academics said. 

Professor Lawrence Loh, director at the Centre for Governance and Sustainability at the National University of Singapore (NUS) Business School, said that the past two years had generated a “cumulative demand” for products and services that used to be available pre-pandemic. 

With the reopening of the economy, industries such as travel and hospitality, F&B, as well as big events such as concerts and meetings, incentives, conferences, and exhibitions, will likely see a surge in pent-up demand. 

“For Singapore companies, it’s important to take the first-mover advantage in the coming period… This time window is critical as more countries are trying to regularise their business operations,” he said. “It’s quite critical to bite the cherry fast.”