SINGAPORE — When co-founder and director of Singapore firm EduCareerSg Michael Teo ramped up operations in Malaysia again sometime last year as the Covid-19 crisis subsided, he had least expected the proliferation of job scams there to impact his business — but it did.
SINGAPORE — As the Covid-19 crisis waned, Mr Michael Teo decided sometime last year to ramp up operations in Malaysia again for his company EduCareerSG, which matches jobseekers with firms in Singapore that are willing to offer employment and sponsor their education.
While some challenges like that faced by EducareerSG came from the left field, other companies that spoke to TODAY highlighted issues such as rising operational costs, manpower crunch and customers' evolving preferences in their key markets. “If you're trapped in that mindset constantly, then it's really difficult for you to move forward,” said Mr Vikram Chakravarty, who leads strategy and transactions in the Southeast Asian market for professional services firm EY.
The businesses and analysts interviewed agreed that post-Covid-19, Singapore businesses should press on with their internationalisation plans. And even as countries around the world seek to leave the pandemic behind, they are rolling back pandemic-related restrictions at different speeds, posing further challenges to companies operating across borders.Ms Zoe Zuo, managing director of Innovative Hub, which offers businesses a whole suite of services to help bring their products on ecommerce platforms, has overseas offices in Vietnam and Malaysia.
However, he said that the brand, with its 14 stores locally and seven overseas in Australia, Cambodia, Malaysia and Vietnam, manages this issue by offering “attractive commission schemes” to its staff. “Shortages of materials and products could result in delays in the construction or upgrading of our new or existing facilities, leading to a slowdown in our expansion plans,” he said.Mr Kenneth Worsdale, chief executive officer of storage company Extra Space Asia.
He acknowledged that any move to diversify a supply chain and make it more resilient would typically cost more for a company. With property prices “at an all-time high” in today’s climate, it has become “more challenging to purchase or rent a property”, he added.While the pandemic has caused a surge in demand for ecommerce, relaxation of rules and resumption of brick-and-mortar shops means that consumers now have the choice to take their shopping offline again.
He shared that the brand had diversified to offer a casual range of clothing during the pandemic to align itself with customer demand back then, and has continued to offer the range even after the crisis has subsided “Correspondingly, the workforce will also need to be retooled and reskilled to harness these technologies, beyond just accepting they are part of the future of work,” said Mr Chiu.
Experts said this may include banding together with other Singapore firms to collectively offer greater value or tapping the knowledge of those who have already penetrated such markets. Dr Wong, who is a serial entrepreneur and angel investor himself and whose academic interest focuses on startups and tech companies, said that Chinese talents and entrepreneurs who might have otherwise headed for the US would now look to other markets such as the Southeast Asian region.
On the digitalisation front, ecommerce is projected to continue growing, while there is a strong demand for companies that can “provide affordable technological solutions tailored for the health, finance, and education sectors”. Global supply chain disruptions owing to border lockdowns and geopolitical tensions led to companies considering diversifying their supply chains and looking to Southeast Asia “with its growing production capabilities” as a manufacturing location of choice.“The digital economy in Southeast Asia is forecasted to reach up to US$1 trillion by 2030”, said Mr Kow Juan Tiang, EnterpriseSG’s executive director for the region.
Given that the region is made up of 10 diverse countries, Singapore firms looking to expand or deepen their presence in the region should adapt their products and services to cater to differences in consumption patterns, local practices, regulations and purchasing power, said Mr Kow.China, as the world’s most populous country and second-largest economy, remains a market of growth for Singapore companies, said Ms April Oh, director for China at EnterpriseSG .
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