About 27% of Singaporean SMEs operate in Vietnam

In Southeast Asian markets, Malaysia topped the list with 64% of all Singaporean SMEs and followed by Indonesia with 44%, Thailand with 35%, Vietnam with 27%, and the Philippines with 23%. 

Among the 2,836 SMEs taking part in this year’s survey conducted by IE Singapore’s DP Information Group, 51% said they earned revenue from foreign markets, up from 46% in the 2013’s survey.

Even as more SMEs are venturing overseas, the proportion of international revenue they generate is falling. The percentage of SMEs generating less than 30% of their revenue overseas rose to 53% this year from 43% a year ago, while those earning more than 70% of their revenue overseas fell to 21% from 26%.

Chen Yew Nah, managing director of DP Information Group, said cost and manpower pressures are forcing SMEs to rethink how they do business. 

As many as 49% of SMEs are facing difficulty in hiring staff, 48% in high manpower costs and 31% in high rental costs.

About 51% said they will be relooking their business model over the next 12 months. Meanwhile, 50% said they plan to increase their production capacity. Most are still looking at ways to optimise the use of manpower (54%) and a smaller number (28%) introducing automation.