Research, research, and more research 

To successfully penetrate a new market, organisations should first understand their consumer needs and all the relevant legal and regulatory frameworks.

They should also be well-versed in local business cultures and practices. For example, Japan places a heavy emphasis on gifting business cards, which must be given and received with both hands and kept in immaculate condition. 

Instead of simply applying a standard business blueprint across different markets, taking the time and effort to understand local customs will boost the chances of a successful expansion.  

Business owners planning to spread their wings should also consider the economic performance of their desired markets. This is because selecting the ideal economic environment will set the groundwork for a successful expansion.  

Southeast Asia, for example, remains a top destination for many enterprises due to its thriving economy and growth, according to a study from Enterprise SG.

Another key to a successful expansion is to study the trends and strengths of the destination markets. For example, tech enterprises would be more inclined to consider emerging tech hub Indonesia so as to harness its potential. 

Stretch your dollar 

One of the top priorities for businesses exploring new markets is to maintain a consistent cash flow. 

Businesses can boost cash flow by tapping into support grants from the government. Enterprise SG provides a variety of grants for businesses, such as the Enterprise Financing Scheme (EFS), which offers financing to businesses at different stages of growth. 

The cost of expansion can also be managed with other government grants. For example, the Market Readiness Assistance (MRA) grant helps defray costs incurred for business development, marketing and set-up.

Fuss-free services can also ease movement of funds between overseas and local accounts. With Maybank’s cross-border services, businesses do not need to pay a service fee for cash withdrawals from Maybank ATMs across Malaysia, Indonesia, Philippines, Brunei and Cambodia. Business owners can also make cross-border funds transfers to their vendors or credit salary payments to their employees in Malaysia instantly, without worrying about the lack of cash liquidity or delayed payments low fees and competitive exchange rates – with the Maybank Overseas Transfer service.

Giving companies a platform to communicate with foreign stakeholders is important too. For example, Enterprise SG regularly engages partners such as Trade Associations and Chambers (TACs) as conduits for businesses to tap new customer bases in overseas markets.

In 2022, the government supported more than 760 companies in 29 markets. It also acted as a stepping stone for over 1,700 organisations in over 90 international trade fairs.

Invest in what is important 

Entering a new market often entails a bumpy journey. To tackle the challenges, companies need to set their priorities straight.  

A start would be looking into implementing digital solutions for resource allocation and customer relationship management.

These will reduce labour-intensive processes, improve workplace productivity and cut costs in the long run.

Investing in and retaining in-house talent should also remain a top priority. Good management will help steer an enterprise through challenges and take it to the next level.

Jumpstart with grants

1. Start Digital programme – digital solutions

This scheme under Infocomm Media Development Authority (IMDA) and Enterprise Singapore (ESG) helps SMEs adopt digital solutions at no cost for at least the first six months. Business owners can sign up for the programme through partners like Maybank, where they will be provided access to business efficiency tools like Financio, a cloud accounting software, or cybersecurity solutions provided by Singtel.

2. Market Readiness Assistance (MRA) – overseas expansion

Looking to expand overseas? Under Enterprise Singapore (ESG), the MRA grant gives SMEs a boost by defraying the costs of marketing, business development and set-up.

Eligible businesses can expect up to 50 per cent coverage of eligible costs, capped at S$100,000 per company per new market. This amount is spread across three activities –    market promotion (capped at S$20,000), business development (capped at S$50,000) and market set-up (capped at S$30,000).

Business owners should note that every application is limited to one activity in the overseas market of your choice, and sales must not have exceeded S$100,000 in your target overseas market for three years prior to your application.

Find out if your company qualifies for the grant here.  

3. T-UP Programme by A*STAR – technology expertise 

Launched by the Agency for Science, Technology and Research (A*STAR) and AI Singapore (AISG), the T-UP Programme assists local companies in their research and development (R&D) projects to enhance business competitiveness. Project areas range from microelectronics to artificial intelligence, bioprocessing and more.

Eligible businesses can receive support of up to S$250,000 for eligible costs for R&D projects and enjoy up to two years of collaborative work on projects with scientists and research engineers from A*STAR. If the project is conducted overseas, living allowances and airfare of the contracted individuals are also covered by the grant.

Find out if your business qualifies for the grant here.

Level up with loans

Besides grants, you may also be looking at cash injections for your business, whether for investment in new capital or for training or renovation costs. These loans may serve as a good option to boost your business.

1. SME Working Capital Loan – no collateral loan

Need cash quickly for your day-to-day business expenses? This unsecured loan is a low-risk funding option that does not require collateral. The government works with banks like Maybank to offer financing of up to S$500,000, with a repayment period of up to five years.

2. Maybank’s e-financing programme – Shariah-compliant loans in minutes

Providing both conventional and Shariah-compliant financing, Maybank SME e-Financing solution allows you to get funding of up to $150,000 in just a few minutes.

Unlike the normal business-as-usual requirement of at least two years of operations, you can apply for this loan as long as your company has been operating for at least a year.

Solve your cash flow issues quickly and easily with Maybank.