Focus on Singapore & S.E. Asia Event – 25-01-23

Summary by Peter Edwards, Chief Executive, International Trade Forum

Presenters:

Kiley Tan – Mosaic International

Keith Rixson – Dymet – a division of Corewire Ltd

William Beckett OBE – ITF

• S.E Asia has currently got some of the fastest growing economies in the world. UK exports to Singapore have increased by 19% last year to £11.8 billion.
• The UK is currently applying to join the Comprehensive & Progressive agreement for Trans-Pacific Partnership (CPTPP) If it is successful in its application the UK will enjoy significant trading opportunities with the 11 countries that form the CPTPP.
• The Regional Comprehensive Partnership (RCEP) is the world’s largest trading bloc, larger than both the US-Mexican-Canada trading agreement and the European Economic Area.
• Singapore at 283 Sq miles is smaller than South Yorkshire. It has a population of 5.6 million people but a similar size GDP as that of Malaysia with a population of 34 million people.
• Both Singapore and Malaysia are on the upward path of economic growth after the covid pandemic.
• Singapore is seen as the region’s premier trading and financial centre and is home to many multinational regional H.Qs, making it a cosmopolitan but an expensive city to live, work and visit.
• Singapore is widely seen as a gateway to other S.E Asian countries, where manufacturing companies have located their bases. It is a travel hub with good links with the rest of SE Asia.
• To take advantage of the lower costs base, Malaysia is usually the location for the sourcing materials and forms part of the supply chain into Singapore. It is not uncommon for companies to be headquartered in Singapore but have other locations in Malaysia due to the ease of travel and similar culture (see Dyson).
• Singapore is a very accessible city due to its size whereas Malaysia is larger and has a number of economic/manufacturing centres such as KL/Selangor, Penang and Johor.
• Building long term relationships are important in both countries but Singapore can appear more transactional (especially if you have something they want).
• English is widely spoken when doing businessand there is an established accounting/legal system similar to the English system, making it very attractive to multinational businesses.
• The business culture requires frequent contact and preferably face to face, which means it is important to make regular trips to the region to build up the relationships.
• When communicating, please remember Emails may not always work! Use WhatsApp

Trade visit to Singapore and South East Asia 2023

The ITF has previously arranged a four trade visits to the region and a number of our members have benefited from joining these trips. We have been able to assist with research, arranging meeting and member networking. We have comprehensive distributor databases that are accessible to our members and we plan to arrange a trade visit to the region later in 2023.

To express your interest in the trade visit please contact Peter Edwards on p.edwards@intradeforum.co.uk

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