Top 3 most important business locations for Singapore firms

Malaysia tops the list of destinations viewed as offering the best growth opportunities in the next three years.

FDI outflow from Singapore is expected to reach US$38.6b by 2020, according to Ernst & Young’s Beyond Asia: Strategies to support the quest for growth report. FDI outflow has already more than doubled between 2004 and 2011 to reach US$22.6b, with peak outflow at US$32.7b in 2007.

The report, based on a survey of over 600 business executives based in East and Southeast Asia, including close to 70 from Singapore, revealed that Singapore executives are firmly focused on the opportunities in Asia.

The top three most significant international business locations for Singapore companies are Malaysia (54%), mainland China (46%) and Thailand (42%). They are also more confident of the growth prospects in Asia than their Asian counterparts

. About twice as many Singapore executives, compared to the Asian survey average, view Mainland China (Singapore 42% vs. Asia 20%), Indonesia (Singapore 33% vs. Asia 16%) and India (28% vs. Asia 16%) as offering the best growth opportunities in the next three years.

Max Loh, Singapore Country Managing Partner at Ernst & Young LLP, says: “As companies from both inside and outside Asia continue to target the region, Singapore companies must be prepared for increased competition for assets, resources, talent and customers as they set sights on the opportunities in Asia. Companies have to continually raise their game or risk losing ground to new competitors. This is particularly pertinent given the country’s small domestic market and its reliance on open trade.”