Phl among Singapore’s preferred expansion site

The Philippines ranked as one of the top five countries in ASEAN that caught the interest of Singaporean companies as expansion site.

Astudy conducted by Hong Kong and Shanghai Banking Corporation (HSBC) revealed that of the 77 percent Singapore-based companies indicated to open office outside of their country, Philippines emerged as the prominent preferred locations.

The study indicated that growing consumer market and overall investment climate in the Philippines are driving the expansion plans.

The HSBC-commission report by the Singapore Business Federation sought the insights of 1036 Singaporebased companies on their interest in overseas expansion.

About 86 percent of those surveyed were considered Small or Medium Sized Enterprises (SMEs) defined as those with annual turnover of S$100million or less than 200 workers.

"Singapore-based SMEs can make a significant contribution to the Philippines’ economy. These firms are looking to expand beyond their domestic markets and can benefit from the cross border activity that was previously seen as the domain of larger corporates," said HSBC Philippines President and CEO Wick Veloso.

Increased trade and investment activity from Singapore will be an important source for Philippines. Singapore is already ASEAN’s largest source of investment, and largest for source of investment overall for Philippines, Veloso added.

Singapore’s inbound investment into Philippines includes companies founded in the Republic as well as many international firms. Of the 37,400 international companies in Singapore, 7,000 are MNCs and 60 percent have regional responsibilities.

The report said 81 percent of respondents with Philippine expansion cited potential customer demand, with 75 percent highlighting overall investment climate and 63 percent citing business costs.

Veloso recommended that this interest should be complemented with active actions from the Philippines.

Partnership opportunities for local Philippine’ firms are expected to rise.

Most of the Singapore-based SMEs who are entering the Philippines or expanding will have or are seeking an in-country relationship, the study highlighted. —

Ehda M. Dagooc