With rising inflation in Asia and sluggish global economic growth, it is vital for Singapore to have locally based, global competitive companies, said Teo Eng Cheong, Chief Executive of International Enterprise (IE) Singapore, in a report by The Business Times.
“In the midst of all these uncertainties, it has become even more critical for Singapore to have Singapore-based, globally competitive companies or GCCs in short,” he said.
He noted that GCCs are Singapore-based companies offering globally competitive products or services and have significant global presence.
“It is, if you like, the final stage of a company’s path of development, and I would like to believe that most companies set out with such a vision in mind and over time, with the right strategies and leadership would have a good chance of becoming a GCC.”
Although some are cautious about investing overseas and wonder if such investments will benefit Singapore, Teo said that IE Singapore is convinced that Singapore’s economy can benefit in various ways.
“First, overseas investments generate backward linkages or spin-offs to Singapore. Second, overseas investments create good jobs for Singaporeans in Singapore and beyond,” he said.
Based on an IE Singapore study, approximately S$4 in economic benefits can be generated for every S$100 investment overseas.
A company with foreign investment will likely have employees who have wide job scopes and cover not just Singapore but also the regional market, noted Teo. While others have regional business developments, some may be based overseas to manage the company’s foreign operations.
“Third, overseas investments will help develop executives with a global or regional expertise. Many of them will be our future leaders.”
“This is because as the world continues to globalise, having a global experience will likely be deemed essential. This will help create a valuable workforce for Singapore ready for the future,” he added.
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