To Keep the Singapore Miracle Alive, Firms Must Plunge into Global Markets

While its economic miracle is hailed around the world, the Lion City can ill-afford to rest on its success. For a highly developed economy in an uncertain global financial system, growth will become increasingly difficult. The island’s small market limits the growth of companies that cater to a local consumer base. For Singapore to achieve its potential as a global city, local companies must invest in overseas markets and establish international footprints.  

As they grow steadily, owing to demographic trends that include a burgeoning middle class, emerging markets, such as those in Southeast Asia, will serve as an important growth engine for Singaporean businesses. Goldman Sachs predicts emerging market growth will outstrip developed market growth this decade (3.8% vs. 1.8%). By 2075, the investment bank predicts, seven of the world's top ten economies will be among those now identified as "emerging." Singaporean companies would be wise to focus on emerging markets.

Alas, a favorable business environment at home and a risk-averse business culture may discourage Singaporean businesses from taking the plunge. They may perceive emerging market business environments as risky and unfamiliar, particularly in an era of increasing regulations and fierce competition. Business leaders, however, should not see these as insurmountable obstacles. With the help of established regional experts, Singaporean companies can navigate the unfamiliar settings of these lucrative new markets.