SMEs told to set employee goals under state’s overseas job program

The target is to set up a foreign network and advance the company’s expansion plan.

Small and medium enterprises (SME) seeking to expand overseas should set clear objectives and measure performance to ensure knowledge transfer under a Singapore programme that subsidises salary support for local employees who are sent abroad.

“Since employees do not get to engage in direct operations, the insights gained may not translate into immediate business growth,” Pranay Kale, chief revenue and growth officer at employment platform Foundit, told Singapore Business Review.

Companies should put in place key performance indicators, such as securing business leads and identifying partners, to ensure structured knowledge transfer, he added.

The city-state’s Overseas Markets Immersion Programme helps companies develop a global-ready workforce by sending new hires or existing employees to an overseas posting with up to 70% salary and overseas allowance support.

It seeks to reduce the costs of developing global talent by granting salary support to build a company’s international-ready team.

To qualify, a company must commit to provide career development for the employees, which can assist them in talent attraction and retention. The $16m initiative is sending as many as 250 local employees to overseas postings for up to two years, said Kenneth Wong, director, Trade and Lifestyle Division at Workforce Singapore.

Employers should assess skills like independence, problem-solving, and resilience since language, cultural knowledge, and adaptability to work cultures are harder to measure objectively, Lee Quane, ECA International's regional director for Asia, told Singapore Business Review.

“Expanding or transferring certain functions or operations is necessary for companies to be competitive,” he said in an emailed reply to questions.

Quane said the goal is to establish networks and advance the company’s overseas expansion plan or strategy, which could include obtaining more knowledge about the local market.

SMEs in manufacturing, agriculture, and food production are expected to benefit from the state program since they often struggle with land and labor shortages, restricting domestic expansion, he added.

Expanding overseas often requires hiring a local team, but this can be costly. In China, the average annual salary for a mid-level professional is $46,000 to $64,500 (CN¥250,000 to CN¥350,000, according to employment platform Foundit. In the US, mid-level professionals typically earn $120,000 to $147,000 (US$90,000 to US$110,000) yearly.

Quane said the cost of sending an employee overseas can be up to five times their salary, highlighting the programme's importance.

The programme provides up to 70% salary support, capped at $5,000 monthly for nine months and 70% overseas allowance, capped at $3,000 monthly, for recurring expenses such as meals, transport, housing, and insurance.

Foundit said relocating an employee from Singapore would cost $13,400 to $40,000 (US$10,000 to US$30,000), covering expenses such as visas, work permits, housing allowances, moving assistance, and family support.

SMEs without a registered entity in their target market often send participants on business or training visas rather than work visas, Kale said.

For China, a business or talent exchange visa is required, while for the US, a business or exchange visitor visa for training programs is best, he added.

To gain hands-on exposure while staying legal, SMEs might need participants to be hosted by government-linked agencies, industry associations, or partner companies, Kale said.

SMEs without a legal entity in their target markets should work with incubators or accelerators to secure business or training visas instead of work permits, he added.