Around 80 percent of Singaporean companies are planning overseas expansion in the next six months, with China and Indonesia being the most preferred destinations, according to the recent BT-UniSIM Business Climate Survey.
About 60 percent of the respondents are looking to expand services or production in more than one market, according to the survey.
However, those in the financial and business, as well as construction services sectors, were less likely to venture into overseas expansion.
About 45 percent of smaller companies also plan to maintain their status quo in the first half of 2011, the study revealed.
In general, China was the most preferred market, followed by Indonesia, Vietnam, Malaysia and the US.
Fewer than three firms surveyed cited other markets including Cambodia, Dubai, Europe, Greece, India, Singapore, South Korea and the Philippines.
The results of the survey seem to echo the stance of external trade and investments agency IE Singapore, that “many Singapore-based companies have consolidated their positions in the past years and are optimistic about expanding their presence overseas”.
Survey director Chow Kit Boey noted that most companies planning to expand their business in more than one country in the next six months “tended to enter China together with at least two other countries”.
China is also the favoured market of companies seeking to expand in only one market, particularly large and local companies and those in the manufacturing sector, the survey showed.