The Singapore Business Federation’s latest National Business Survey reveals a decline in the number of local companies planning to expand their operations overseas, with the figure dropping to 57% from 65% in the previous year. Businesses are increasingly adopting a cautious approach, prioritizing domestic stability while navigating high operational costs and global economic uncertainties. Despite the slowdown in internationalization plans, many firms are focusing on digital transformation and the integration of artificial intelligence to improve productivity and mitigate the impact of persistent manpower shortages.
- The percentage of Singaporean firms intending to expand internationally fell to 57%, down from 65% in the prior year’s survey.
- Vietnam, Indonesia, and Thailand remain the primary target markets for companies still looking to grow within the Southeast Asian region.
- Key challenges cited by businesses include the rising costs of labor and utilities, as well as difficulties in recruiting and retaining staff.
- Business sentiment for 2024 has shown slight improvement, with more firms expressing optimism about the economic climate compared to the previous year.
- Digitalization is a major priority, with approximately 25% of surveyed companies already implementing artificial intelligence in their business processes.
Based in Singapore, CNA (Channel News Asia) covers global developments with an Asian perspective, with correspondents based in major cities across Asia, including Kuala Lumpur, Jakarta, Bangkok, Tokyo, Seoul and Beijing, as well as in New York, Washington D.C. and London.
Official website: https://www.channelnewsasia.com/
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