Introduction
Singapore has long been known as a strategic global hub — a place where east meets west, and commerce flows freely in all directions. Yet, within its compact city-state boundaries lies a finite market. With a population of about 5.9 million and a land area of just over 700 square kilometers, domestic market opportunities are limited. For Singaporean enterprises to achieve scale and long-term sustainability, international expansion is not just a strategy — it’s a necessity.
Recognising this, the Singapore government has taken decisive and strategic steps to support local businesses in their globalisation journey. Whether it is small and medium-sized enterprises (SMEs) looking to enter ASEAN markets, or technology companies aiming to scale across continents, there are robust frameworks and financial support mechanisms available to encourage outbound expansion.
From generous grants and financing schemes to talent deployment programs and institutional backing, Singapore’s pro-business environment extends well beyond its borders. This article explores how the Singapore government actively encourages its local businesses to expand overseas, with specific reference to the strategies, schemes, and success stories that have emerged over the past decade.
Strategic Rationale for Overseas Expansion
Before delving into the “how,” it’s important to understand the “why.” Why is the Singapore government so determined to help local businesses expand beyond the country’s borders?
1. A Small Domestic Market
Singapore’s limited population and land size mean that local demand alone cannot sustain long-term business growth for most companies. To reach new customer bases, generate higher revenue, and remain competitive, businesses must look abroad.
For example, a local food manufacturer that has saturated supermarket shelves in Singapore must now explore regional distribution in markets like Indonesia, Malaysia, or China to grow. This approach is not just about profits—it’s about survivability in a globalised economy.
2. Economic Diversification and Resilience
Encouraging businesses to expand internationally creates diversification at both the company and national levels. Companies reduce overreliance on any single market, while Singapore builds resilience into its national economy by supporting companies that generate global revenue streams.
This became particularly relevant during the COVID-19 pandemic. Companies with diversified markets were better able to cushion the impact of local lockdowns and demand shocks. The Singapore government responded by doubling down on grants and schemes to support firms in their overseas aspirations.
3. Capitalising on Trade Networks
Singapore is one of the most trade-connected countries in the world. It has over 27 implemented free trade agreements (FTAs), including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). These agreements allow Singapore companies preferential access to major economies, offering reduced tariffs, simplified customs processes, and intellectual property protection.
The government’s aggressive pursuit of FTAs makes it easier for Singapore businesses to expand overseas, and enterprises are strongly encouraged to leverage this advantage.
4. Positioning Singapore as a Global HQ
By helping local businesses succeed overseas, the government is also supporting Singapore’s aim to be a regional headquarters for multinational corporations (MNCs) and fast-growing enterprises. Global players increasingly choose to base their Asia-Pacific operations in Singapore due to its rule of law, political stability, talent pool, and connectivity. Singaporean enterprises are thus equipped to grow side-by-side with global firms in shared ecosystems.
Financial Supports and Incentives
One of the most tangible ways the Singapore government supports overseas expansion is through grants and financial schemes. These reduce the costs and risks associated with entering new markets — particularly crucial for SMEs that may lack deep financial resources.
1. Market Readiness Assistance (MRA) Grant
The MRA Grant, administered by Enterprise Singapore, is a flagship scheme that provides financial support to companies ready to venture overseas.
Key features of the MRA Grant include:
- Up to 50% support on eligible costs.
- S$100,000 cap per new market for:
- Overseas market promotion (e.g. participating in trade fairs).
- Business development (e.g. market research, partner search).
- Overseas market setup (e.g. legal or IP advice, incorporation fees).
The grant is highly targeted — it’s meant for SMEs and focuses on helping companies take their first steps into new markets. Each market qualifies for its own grant limit, so companies can apply for multiple countries over time.
Since 2020, the MRA has seen increased uptake, and enhancements have been made to ensure businesses can use it for virtual events, e-commerce expansion, and digital marketing — all important tools for global business development in the post-pandemic era.
2. Enterprise Development Grant (EDG)
The Enterprise Development Grant supports projects that help companies upgrade their capabilities, innovate, and expand internationally. While broader in scope than the MRA, it covers overseas expansion as one of its core areas.
Under the EDG, companies can apply for up to 50% support for:
- Developing internationalisation strategies.
- Conducting feasibility studies for foreign market entry.
- Setting up overseas sales offices or joint ventures.
- Marketing and branding development tailored for foreign audiences.
Unlike the MRA, which is best for first entries into new markets, the EDG is more appropriate for companies already operating internationally or planning large-scale moves.
Both the MRA and EDG are administered with checks and milestones — ensuring companies use the funds effectively and are progressing toward their overseas goals.
3. Double Tax Deduction for Internationalisation (DTDi)
To further encourage overseas growth, the DTDi scheme allows companies to deduct up to 200% of eligible expenses related to international business development.
These include:
- Overseas market trips and missions.
- Participation in approved trade fairs.
- Product and service certification for overseas markets.
- Overseas advertising and promotional campaigns.
The best part? No upfront application is needed for certain qualifying expenses below S$150,000 — making this an easy and automatic way for companies to enjoy cost savings when they start their international journey.
4. Enterprise Financing Scheme (EFS) – Trade Loans
Expanding abroad often requires working capital, and that’s where the Enterprise Financing Scheme – Trade Loan comes in.
This scheme provides up to S$10 million per borrower for trade financing needs such as:
- Inventory and pre-shipment costs.
- Trade receivables.
- Structured trade and commodity financing.
The government co-shares the risk with participating financial institutions, encouraging banks to lend to SMEs embarking on internationalisation.
Especially during global disruptions like the pandemic, this scheme was expanded and enhanced, with higher risk-sharing ratios to keep credit flowing to businesses.
5. GlobalConnect@SBF & LEAD Trade Missions
Beyond grants, the government also provides soft support in the form of mission participation and business matching. Through the LEAD (Local Enterprise and Association Development) program, trade associations can organise outbound missions with partial funding.
GlobalConnect@SBF, a Singapore Business Federation initiative supported by EnterpriseSG, is another example. It offers companies:
- Market insights and feasibility analysis.
- In-market partners and buyers.
- Customised go-to-market strategies.
Such facilitation helps companies reduce the trial-and-error phase in overseas growth.
Talent Deployment and Capability Building
Beyond money, businesses also need people with the right skills and knowledge to venture overseas. Recognising this, the Singapore government has introduced several schemes to build manpower capabilities tailored for global growth.
1. Overseas Markets Immersion Programme (OMIP)
The OMIP is a wage support scheme that helps local companies send employees overseas to gain market insights and establish networks. Through this program, companies can receive up to:
- 70% salary support, capped at S$72,000 per employee.
- Coverage for airfare, accommodation, and insurance.
The immersion typically lasts six to nine months, and is especially useful for SMEs who want to test new markets before setting up full operations.
2. Global Ready Talent Programme (GRT)
This program offers internship subsidies and hiring support for local and overseas internships. It prepares Singaporean graduates and young professionals to take on global roles and supports companies in building a pipeline of international-ready talent.
For example, SMEs can receive up to 70% support on internship stipends for local students deployed overseas — a win-win for both the employer and the intern.
3. SkillsFuture and Workforce Singapore Initiatives
To round out capability building, SkillsFuture Singapore (SSG) and Workforce Singapore (WSG) offer training grants for leadership development, market intelligence, and cross-cultural management — all essential for effective overseas operations.
Courses can be sector-specific, such as logistics and supply chain training for firms expanding into Vietnam, or regional-specific, like understanding regulatory requirements in China or ASEAN markets.
Institutional and Network Support
In addition to funding and manpower schemes, the Singapore government understands the importance of infrastructure and networks in facilitating international expansion. By building a strong ecosystem of overseas offices, alliances, and trade platforms, Singapore ensures its businesses have access to in-market intelligence, trusted partners, and immediate soft landing support.
1. Enterprise Singapore Overseas Centres
Enterprise Singapore (EnterpriseSG) plays a central role in internationalisation through its network of over 35 overseas centres across more than 20 markets. These centres act as on-the-ground resources for Singapore businesses, offering:
- Market insights and regulatory guidance
- Introductions to local partners, buyers, and distributors
- Assistance in navigating foreign business environments
- Facilitation of trade fairs and exhibitions
Whether a company is entering a developed market like Japan or a fast-growing market like Vietnam, EnterpriseSG officers provide invaluable support that reduces the barriers to entry. These centres are often located in key cities, including Shanghai, Jakarta, Dubai, Sydney, and London.
This institutional support ensures that Singapore companies are never alone in their overseas ventures.
2. Global Innovation Alliance (GIA)
The Global Innovation Alliance (GIA) is another powerful tool in Singapore’s overseas growth playbook. It connects Singapore companies and startups with leading innovation hubs around the world — including San Francisco, Paris, Berlin, Tokyo, and Ho Chi Minh City.
GIA supports overseas immersion programmes, co-innovation projects, and startup accelerator initiatives. Through GIA, Singaporean startups and SMEs can:
- Test-bed solutions with international partners
- Co-develop new products or technologies
- Gain access to venture capital and investor networks
For example, a medtech startup from Singapore might join a GIA acceleration programme in Germany to partner with a European hospital group, paving the way for product validation and market access.
3. Bilateral Business Forums and Industry Platforms
The Singapore government also works closely with foreign counterparts to organise bilateral forums and public-private platforms. These include:
- Singapore-China Business Forums
- Singapore-Indonesia Investment Forums
- ASEAN Business Advisory Council events
These initiatives help build trust, foster long-term relationships, and ensure Singapore companies have a seat at the table in high-growth regions.
4. Plug-and-Play Expansion Platforms
To make global expansion smoother, some schemes offer plug-and-play models — pre-built infrastructure or co-working spaces in target markets that lower the cost and complexity of market entry.
For example, Singapore’s collaboration with Korea’s Pangyo Techno Valley and Indonesia’s Nongsa Digital Park provides Singapore startups with ready-to-use facilities, local partners, and innovation community access.
Such infrastructure, often supported by both governments, reduces operational barriers and enhances scalability for Singaporean companies abroad.
Sustainable and Sector-Specific Internationalisation
The Singapore government’s push for overseas expansion is not just broad—it is also strategically targeted toward high-potential sectors and aligned with future-focused global trends, such as sustainability and digital transformation.
1. Green Economy and Sustainability Support
As the world moves toward low-carbon and green growth, Singapore is helping its enterprises stay ahead of the curve. This includes supporting overseas expansion in:
- Renewable energy: solar projects, green hydrogen
- Carbon services: carbon credit trading and verification
- Sustainable finance: green bonds and ESG-aligned investments
The Carbon Market Working Group and partnerships with countries like Indonesia, Australia, and Vietnam create new opportunities for Singapore companies to tap into cross-border sustainability projects.
Additionally, the government has introduced funding schemes to support companies developing carbon accounting software, cleantech products, and other green innovations for overseas markets.
2. Advanced Manufacturing and Deep Tech
Manufacturing remains a core engine of Singapore’s economy, but the focus has shifted to advanced sectors like:
- Semiconductors
- Precision engineering
- Biopharma
- Robotics and automation
The Singapore Economic Development Board (EDB) and EnterpriseSG co-fund and support these firms as they expand manufacturing bases or partnerships abroad.
Similarly, deep tech firms — in AI, quantum computing, biotech — are supported with access to GIA nodes, co-innovation funds, and investor matching in international markets.
3. Food, Retail, and E-Commerce
Singapore’s strong brand in food safety, innovation, and packaging gives local food manufacturers a competitive edge overseas. The government assists companies in:
- Obtaining overseas product certifications
- Creating international distribution networks
- Navigating complex regulatory environments
Likewise, Singapore’s vibrant retail and e-commerce ecosystem benefits from e-marketplace onboarding support and digital trade training. SMEs can now scale beyond borders through Amazon, Shopee, Lazada, and Tokopedia—with financial incentives and training provided.
Case Studies: Singapore Companies Going Global
To understand the real impact of government support, it’s helpful to look at successful examples of Singapore businesses that have expanded overseas with the aid of national programmes.
1. Carousell
Carousell started as a simple peer-to-peer marketplace in Singapore. With the help of support from the Startup SG Accelerator and internationalisation guidance from EnterpriseSG, it now operates in Malaysia, Taiwan, Hong Kong, and the Philippines.
Their expansion strategy involved localisation, mergers with regional competitors, and aggressive mobile-first campaigns—all supported by Singapore’s innovation ecosystem.
2. TWG Tea
Luxury tea brand TWG leveraged the EDG and MRA grants to penetrate overseas markets including Japan, the UAE, and Europe. With funding support and in-market advisory, TWG was able to open premium boutiques and establish global supply chains while maintaining its “Singapore luxury” identity.
Today, TWG is a shining example of how a Singaporean brand can go premium and global—backed by sound policy support.
3. Nanofilm Technologies
Nanofilm, a deep-tech materials company, received government-backed support to scale globally. It benefited from early-stage research grants, manufacturing incentives, and help from EnterpriseSG to enter Chinese and Japanese markets.
The company is now listed on the Singapore Exchange (SGX) and serves multinational clients worldwide.
4. Love, Bonito
Singapore-based fashion brand Love, Bonito successfully entered Malaysia, Indonesia, Hong Kong, and the U.S. with help from the MRA Grant and e-commerce support programmes. The government helped defray their costs for digital marketing, market research, and overseas hiring.
Their story is often cited as a model of how retail brands can scale internationally through omni-channel strategies — supported by Singapore’s grants and market access networks.
Challenges and the Road Ahead
While the government has provided a wide range of tools and resources, overseas expansion is not without challenges. Understanding these barriers helps fine-tune future policies and better prepare companies for global growth.
1. High Operational Costs
One of the main obstacles faced by Singapore SMEs is the relatively high cost of doing business abroad—especially in developed markets. Costs include:
- Talent acquisition
- Compliance and legal fees
- Logistics and warehousing
Government co-funding eases this burden, but long-term cost management remains the responsibility of the business.
2. Complex Regulatory Environments
Each market comes with its own set of compliance requirements. From product registration in the EU to import-export restrictions in China, SMEs often struggle with the red tape.
EnterpriseSG and GIA are actively addressing this by offering compliance consultants, local partners, and sandbox environments for pilot testing.
3. Geopolitical and Currency Risks
Tensions in trade relations, sanctions, and volatile exchange rates can impact overseas operations. The government provides strategic guidance through risk assessments and diplomacy-led business missions, but companies need to develop internal risk mitigation strategies.
4. Competition and Market Saturation
Singapore businesses often face stiff competition in foreign markets—from both local incumbents and larger international players. To succeed, companies must find differentiated value propositions and niche advantages.
Conclusion
Singapore’s transformation from a trading outpost to a global business hub has been nothing short of extraordinary. The government’s support for overseas expansion is an extension of that journey — equipping local enterprises with the tools, talent, and funding to thrive on the global stage.
Through a combination of financial support (MRA, EDG, DTDi), talent deployment (OMIP, GRT), institutional networks (EnterpriseSG centres, GIA), and strategic sector focus (green economy, advanced manufacturing, digital trade), Singapore businesses are better positioned than ever to go global.
The success stories of Carousell, TWG, and Love, Bonito prove that Singapore enterprises can not only survive but lead in international markets when given the right support.
As global markets evolve and competition intensifies, the Singapore government remains committed to nurturing its businesses—not just within the island’s shores, but far beyond them. For companies with bold visions and strategic execution, the world truly is their oyster.