SME internationalisation: S'pore, EU working together

NOT only do Singapore and the European Union share similarities in the structure of their economies - with services accounting for around 75 per cent of GDP - but small and medium enterprises (SMEs) constitute the backbone of our respective private sectors, delivering economic growth, innovation, job creation and social integration.

In the EU, SMEs represent 99 per cent of all businesses, provide 80 million jobs or two-thirds of all private-sector employment, and contribute 58 cents of every euro in value added. Thanks to their versatility and adaptability, over the past five years they have created around 85 per cent of new jobs in the EU. Similarly, Singapore's 180,000 SMEs account for half of the country's GDP, represent 99 per cent of enterprises and employ over 70 per cent of the country's workforce.

While these impressive statistics are testament to the importance and resilience of our SMEs, by virtue of their size, they often face specific impediments and challenges when accessing finance or when trying to enter new markets. In fact, according to Eurochambres, only 13 per cent of EU SMEs are internationally active and only 10 per cent of manufacturing SMEs export goods to countries outside of Europe. Figures from IE Singapore suggest a similar internationalisation footprint for the city-state's SMEs.