Why regionalisation and globalisation matter for Singapore

Globalisation is driven by technology and the movement of ideas, people, and goods. As the world is increasingly dominated by the US and China, the new frontier of globalisation is the cyber world. The digital economy, now further enabled by artificial intelligence, is becoming a force to reckon with through e-commerce, digital services, and 3D printing.

Globalisation 4.0 presents a unique opportunity for Singaporean businesses to expand their reach and tap into new markets. However, to truly thrive, companies must adapt and innovate. IndSights offer some key considerations for Singaporean businesses to navigate the exciting – and potentially lucrative – world of regionalisation and globalisation, through the key takeaways from our panel discussion.

The four pillars of internationalisation and regionalisation

Building bridges and collaborate for success

Regional markets present unique challenges and opportunities. To truly thrive, Singaporean businesses must navigate regional complexities with a collaborative mindset.

Our esteemed panellists highlighted the importance of building bridges with local partners, as local expertise is invaluable. Collaborate with partners who can guide you through regulations, cultural nuances, and client relationship building – essentially becoming your trusted guide in the new market. For example, ride-hailing giant Grab’s success in Southeast Asia, where its strategic partnerships include local players like Yamaha Motors in Vietnam for motorbike rentals and Maybank in Malaysia for cashless payments, enabled Grab to navigate local regulations and cater to specific market needs.

Also Read: Meet the 8 startups attending Innovate UK’s incubator programme in Singapore

Proactive planning and strategic partnerships are the keys that can help Singaporean companies to position yourselves for cost-effective and sustainable success in diverse markets.

Building trust: the key to unlocking international successInternational business thrives on trust. Trust goes beyond mere transactions, and it includes forging strong bonds with local partners to unlock a treasure trove of cultural insights and market dynamics.  Panelists at IndSights’ Business Forum regarded this as arguably one of the most important strategies for doing business overseas.

Singapore success stories:

• Carousell: Established in Singapore in 2012, Carousell has grown into a leading regional marketplace across Southeast Asia and Taiwan. Its success is attributed to their focus on building a user-friendly platform and fostering trust among buyers and sellers, which was achieved by understanding the needs of the market. It emphasised building trust through initiatives like buyer protection programs and secure payment options.
• Sheng Siong Group: This Singaporean supermarket chain has expanded into China over last few the years. The company emphasised understanding local customer preferences and offering products at competitive prices to gain trust and brand loyalty.

Singaporean companies that prioritise trust-building initiatives gain a significant advantage. By fostering genuine communication and cultural sensitivity, businesses pave the way for smoother market integration and more sustainable growth.

Lay the groundwork: research and understand the market

There is no one-size-fits-all approach to internationalisation. Before diving in, Singaporean businesses must meticulously lay the groundwork for success. Our Business Forum panellists recommended that business leaders conduct in-depth research on areas such as the target market’s political climate, regulations, and potential economic factors. It is crucial to get on the ground, meet with potential partners and clients, and immerse yourself in the local business environment.

The PESTLE framework can be a useful tool for businesses to analyse the external factors that can impact their operations. PESTLE stands for:

• Political: Includes government policies, regulations, and stability. For example, Enterprise Singapore offers grants to help companies with market research and feasibility studies with a Market Readiness Assistance Grant.
• Economic: Considers economic factors like inflation, interest rates, and growth.
• Social: Looks at social trends, demographics, and consumer preferences. For instance, you can develop solutions that not only tailor to local needs but also to meet the region’s price sensitivity.
• Technological: Includes technological advancements and how they affect the industry.
• Legal: considers laws and regulations that can affect the business.
• Environmental: Refers to environmental factors like climate change and sustainability.

By examining each of these areas, businesses can gain valuable insights into the overall landscape of an overseas market. PESTLE is particularly handy for researching new markets for expansion. It allows businesses to identify potential threats, and PESTLE analysis can highlight opportunities, like new technologies or lax environmental regulations. By understanding these factors, businesses can make informed decisions about entering a new market, develop strategies to mitigate risks and capitalise on potential benefits.

Additionally, the panellists emphasised the importance of calculated risk-taking. Waiting for guaranteed demand can be a losing proposition. Instead, by leveraging data-driven insights and predictive analytics, Singaporean companies can become first movers.

Also Read: Strategies for Singapore businesses to thrive in the face of workforce and inflation

The information from the groundwork, comprehensive research and local engagement, will increase the chances of success in expanding overseas, enabling companies to develop adaptable growth strategies, maximise market penetration, and in new markets.

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