What do SMEs here need to do to work more fruitfully with large enterprises and multinationals, on the one hand; and with SMEs from other countries, o

The Singapore business ecosystem is limited by its sheer small size. Singapore has no natural resources and lacks a sizeable domestic market; hence the only rational choice is to attract large enterprises and multinationals to come to our shore to set their bases here. Many SMEs grew in the early 1980s to 1990s on the back of a manufacturing boom brought on by the likes of Seagate and HP. The SMEs played second fiddle and supported these large enterprises and MNCs by providing contract manufacturing of parts and services. They grew on the momentum developed by these large enterprises which provides goods and services to the world. Such clustering of manufacturing focus is necessary – petrol chemical, pharmaceuticals, semi-conductors, etc and Singapore excel by working hand-in-glove with these MNCs.



The other strategic thrust will be for Singapore’s SMEs to reach out and be connected to the global economy especially in growth countries like China, India, Brazil, Russia and also by plugging into the Asia Pacific growth opportunities. For growth, Singapore SMEs must also work with the SMEs in these countries and be plugged into their business eco-system and to become the lifeline of their economic growth. It is through such economic strategy that Singapore is linked up with the global economy.