Beyond Singapore: Navigating cross-border expansion
Tech in Asia
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In partnership with Payoneer
Summary:
For businesses eyeing the dynamic markets of Southeast Asia, the question isn’t if you should leverage Singapore, but how.
The city-state has cemented its reputation as a vital business hub in the region, providing a strong launchpad for businesses with cross-border ambitions. However, taking that leap from Singapore is just the first step, and a successful expansion requires a lot more than just market presence.
What exactly makes the city-state so appealing, and how can businesses best navigate their expansion journey from Singapore to the rest of the region? Let’s dive deeper.
The starting point for global ambition
Singapore has been named the world’s leading business environment for 15 consecutive years. Its credentials are pretty clear: It has easy incorporation procedures, a robust regulatory environment, and favorable tax rates, among other factors.
“Singapore is in a very unique place globally,” Nagesh Devata, senior vice president of Asia Pacific at fintech firm Payoneer, said at Founders Meetup: Celebrating Borderless Ambition. He discussed cross-border expansion at the event, which was jointly organized by Payoneer and Tech in Asia.
“I would look at it from two particular lenses,” Devata added. “One, Singapore businesses are going international and using Singapore as a base. But the other is SMEs coming to Singapore and setting themselves up here. These could be businesses from anywhere in the world, who use Singapore as a base to set up and legitimize themselves before they expand even further.”
Joroc Reyes Loh, head of sales for Singapore at digital corporate services provider Sleek, said at the same event that the city-state offers “strong” infrastructure and a “founder-friendly” ecosystem. He also pointed out that it is a “great test bed for companies.”
“English is widely used here [in Singapore],” he added. “We have a strong network of service providers, and we provide an avenue for companies to scale into Southeast Asia, as well as the rest of the Asia-Pacific region.”
All of this means that the “Singapore opportunity” is an exciting one for businesses looking to venture into multiple markets, leveraging the nation’s status as a trade hub to connect with potential customers and partners all over the world.
Navigating the expansion journey
Singapore may be an effective gateway to Southeast Asia and beyond, but companies looking to expand into the region need to remember that it is far from homogenous.
At the event, Sabrina Tan, CEO and founder of skincare brand Skin Inc, recounted her own experiences while expanding abroad. Although building presence across the region from Singapore seemed like a sensible decision, the journey came with its own set of pain points.
“[One of the biggest challenges] we faced was understanding the nuances of each individual market,” she said. “ASEAN might be small, but the Thailand consumer for beauty is very different from Malaysian consumer versus Singaporean consumer. We had to very quickly pivot to understand the market and localize everything, from pricing to the packaging size.”
Another crucial element is laying the right foundations for the expansion, especially when it comes to the nitty-gritty details.
“Don’t treat incorporation as the finish line,” warned Sleek’s Loh. “It’s really just the starting point.”
Missing key deadlines imposed by regulatory authorities, letting bookkeeping slide, and ignoring payroll obligations are all common issues that can lead to significant penalties and distract founders from growing their business.
Payments are an important part of the process as well, especially since many ventures face friction when trying to move money across borders.
“If I’m an SME coming or going from Singapore to another market, how do I open up a bank account?” Payoneer’s Devata said. “We may take this for granted and assume that it is a very straightforward process, but in a lot of emerging or developing markets, it’s a challenge.”
This hurdle of creating a bank account can lead to future problems. Companies then need the right payment partners to help ensure that financial operations run smoothly.
Having the right partner “can reduce some of those challenges,” according to Devata.
“You can focus on what you do best, which is selling your product and connecting with customers,” he explained.
Building for the future
Amid ongoing global economic and political instability, Singapore also provides plenty of opportunities and support.
For example, the city-state’s 27 free trade agreements help businesses tackle challenges such as the ongoing tariff war. These agreements also offer support in areas like financial services, offering sophisticated payment solutions to effectively manage and mitigate tariffs’ impact.
Ultimately, expanding from Singapore to the rest of the world unlocks exciting opportunities for businesses with global ambition.
“I was employee number one in Singapore for Payoneer,” said Devata. “The journey is very much one of transformation and one of unlimited potential and opportunity.”
Payoneer aims to connect the world’s underserved businesses to a rising, global economy. As part of this mission, it’s working to help businesses unlock exciting opportunities for expansion.
Uncover the hard-won lessons and unlock the secrets to finding success beyond borders through landscape analyses and industry insights, all in one place.
This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.