Budget 2022: venturing overseas and supply chain challenges

GIVEN the size of the domestic economy, Singapore-based companies have long been encouraged to venture overseas to explore new markets and expand operations. The recent Budget 2022 unveiled a new initiative called Singapore Global Enterprises which aims to customise assistance for larger local enterprises to scale up and invest overseas. This will be coupled with a talent development programme called the Singapore Global Executive Programme.

While these new initiatives will come in handy to help local companies navigate the many variables that they may face when venturing abroad, one area that enterprises may need help in is in finding solutions to mitigate supply chain chokepoints that could arise from future disruptions.

The pandemic has not deterred companies from seeking to expand overseas. The Singapore Chinese Chamber of Commerce and Industry (SCCCI)'s annual survey reported that 59.7 per cent of their members planned to venture overseas in 2021, compared to 50.7 per cent in 2020. Their top 3 markets in order of importance are China (43 per cent), Malaysia (36.6 per cent), and Indonesia (33.2 per cent).