When domestic markets narrow, expansion becomes not just an option but a necessity. Today, Singaporean companies are increasingly looking overseas for growth, turning global challenges into strategic opportunities. Here’s how businesses can prepare and succeed in international markets.

1. The Local Slowdown: Why Expansion Can't Wait

Singapore's small domestic market, compounded by rising costs and stagnant growth, is pushing firms to look outward. The Ministry of Trade and Industry has projected GDP growth of just 1–3% in 2025—down from 3.5% the previous year—making global diversification strategic rather than optional (Timcole Insights, 2025)

At the same time, more than 64% of businesses are planning international expansion within the next year, especially into Southeast Asia, Malaysia, Vietnam, the Philippines, and even the Netherlands (Airwallex Survey, 2023)/2025

 

2. Building Talent with Global Perspective

Numbers are only one piece of the puzzle. Expanding abroad requires cultural fluency and managerial confidence. Nearly 30% of firms cite the lack of experienced personnel to oversee overseas operations as a key barrier (The Business Times, 2025)

Singapore has introduced Workforce Singapore’s Overseas Markets Immersion Programme, offering up to nine months of salary support and allowances to encourage talent deployment abroad—building leadership skills and on-ground market insight simultaneously

 

3. Know the Terrain: Grants and Strategic Support

The government continues to fuel expansion with tangible support:

• Tax & Grant Incentives

  Programs such as the Market Readiness Assistance (MRA) grant and the Double Tax Deduction for Internationalisation (DTDi) reduce financial burden by covering market entry activities and related expenses (Dr Biz 2025)

• Financing for Aggressive Moves

  New initiatives like the Private Credit Growth Fund and expanded loan schemes support ventures into M&As and capital-intensive global strategies without losing ownership control (The Straits Times / MIT 2025)

4. Collaborate and Conquer: Power of Partnerships

Going global doesn't mean going solo. UOB’s FDI Advisory model shows how collaboration can pave smoother paths to foreign markets. For example, the Singapore restaurant group Five Star, venturing into Indonesia, received onboarding advice and infrastructure support through UOB’s network of partners—proving the power of strategic alliances (The Straits Times 2024)

 

Final Thought

Navigating a tightening local market isn't easy—but for businesses willing to internationalize, the global landscape is full of opportunity. With targeted support, strategic partnerships, and a growing global mindset, Singapore companies can thrive on the world stage.

 

Reference List

• Timcole Insights (2025) Why SMEs are setting their sights abroad.
   

• Airwallex (2023/2025) Singapore businesses brace for recession but prioritize global expansion.
   

• Wong, K. (2025) Shaping a globally adept workforce is a challenge for businesses. The Business Times.
   

• Dr Biz (2025) How Singapore businesses are embracing internationalisation.
   

• The Straits Times (2024) “Hunt in a pack”: How businesses can collaborate for global success.
   

• The Straits Times / MIT (2025) Support for internationalisation and financing incentives.