Internationalisation plays a key role in creating PMET jobs for the future. Internationalisation has become the key engine of growth for Singapore companies. According to key findings from International Enterprise (IE) Singapore’s Internationalisation Survey 2016 of 700 companies across major sectors, shows that Companies’ overseas revenue (OR) grew at 4.2 percent year-on-year (y-o-y), outpacing total revenue growth of 1.3 percent y-o-y.

Also job growth was skewed towards the Professional, Managerial, Executive and Technician (PMET) jobs with 61 percent internationalisation efforts focused on the same, while 53 percent was on domestic-focused jobs.

The survey also found that overseas operations created jobs that were more likely to be skilled than domestic-only operations. Overseas expansion created jobs both in Singapore and abroad. While majority of the jobs based in Singapore went to Singaporeans and PRs, and SMEs had a higher propensity to send Singaporeans and PRs to take up the jobs based overseas.

For 2017, companies indicated strong interest in China, Myanmar and Vietnam. While SMEs expressed renewed interest in Vietnam and India, the large enterprises were more focused in the US and UK. Also companies keen on establishing their businesses overseas were investing efforts in establishing a track record in new markets or new business segments, digital platforms and channels, and M&As.

In the IE Singapore Internationalisation Survey, both SMEs and large enterprises saw a rise in OR’s contribution to total revenue. For SMEs, OR formed 53 percent of the total revenue, a 3 percent-point increase from the previous year, while for large enterprises OR formed 40 percent of the total revenue, a 1 percent increase from the previous year.

Singapore’s Direct Investments Abroad (DIA) grew 2.5 percent y-o-y (S$636.8 billion as at end 2015), growing at a compound annual growth rate (CAGR) of 9.2 percent from 2011-2015. Asia accounted for the largest share of DIA at 54 percent; China, Hong Kong, Indonesia and Malaysia were the top investment destinations within Asia in 2015.

More than half of Singapore companies had footprints in top markets of China and Malaysia. Companies are increasingly interested in Vietnam, Myanmar and India.

See: 2016 Saw Increase in Hiring Demand for PMETs: MOM Finds

Mr Lee Ark Boon, Chief Executive Officer of IE Singapore said, “Internationalisation is core to sustaining Singapore’s growth and IE Singapore will continue to support companies venturing beyond our shores, in particular to Southeast Asia, China and India, where 20 of our 37 overseas centres are located. IE Singapore will continue to deepen our in-market presence and network, to identify and create opportunities, and help our companies seize them. Through internationalisation, companies will transform and create high-quality jobs locally and secure sustainable growth for Singapore.”

IE Singapore further facilitated over 450 projects globally in 2016, with majority in China and Southeast Asia. 30 percent were projects that transformed the business of enterprises – with 75 related to entry into completely new markets or new lines of businesses, 45 were e-commerce projects and 21 were M&As. Companies in Singapore are actively using M&A to acquire technology, capability or customer segments to scale up.

In 2016, IE Singapore assisted 37,000 companies with SMEs accounting for 80 percent. Over 10,000 companies received S$73.4 million in grants. More companies utilised the Market Readiness Assistance (MRA) Grant with 1,500 approved applications, a 43 percent increase over 2015.

Of these, 20 percent were companies that set foot outside Singapore for the first time to venture into China, Indonesia, Myanmar, Vietnam and India. 22 percent of all MRA Grant approvals were for activities in global online retail/e-commerce platforms.

IE Singapore also partnered Trade Associations and Chambers (TACs) to assist in the internationalisation of their members, with increasingly more activities moving towards digital. 39 of the joint initiatives between IE Singapore and TACs were digital-related, 30 percent higher than 2015. These activities benefited 1,000 companies.

Also read: Annual Job Growth of 25,000 to 40,000 Expected in the Next 3 to 5 years in Singapore