Singapore firms to focus on local investments and hold off on foreign ventures
They are concerned over political and economic uncertainties overseas.
The recent survey by American Express revealed that larger firms in Singapore would likely focus on investing in the local market rather than overseas.
This is amidst the overall optimism in Singapore, with 80% of Chief Financial Officers saying they are hoping for an economic expansion this year. The majority of the respondents (97%) saying that they would spend more would prioritise on staying competitive locally rather than expanding their business overseas.
Around 80% of CFO's are tagging political and economic uncertainty as a major concern that would deter their investments in other countries.
“It is pleasing to finally see optimism return after years of suppressed growth and companies appear to be ready to increase their spending,” vice president and general manager of Global Corporate Payments for Singapore, American Express Nigel Fox said.
He added, "What is interesting is that the survey shows that Singapore CFOs are hesitant to expand overseas in favor of investing more in their home market despite the Singapore government encouraging SMEs to enter new markets to overcome the country’s limited size with grants and funding new schemes.”