from the ground Up

by Jessica Cheam, The Straits Times, Nov 5 2008

Trade Minister outlines three growth strategies for firms to ride out economic downturn
SINGAPORE companies must take advantage of this period of financial gloom in the global economy and strengthen their competitiveness, said Trade and Industry Minister Lim Hng Kiang.
They should strive to “advance their global footprint in emerging economies during the downturn and prepare to become even more competitive when recovery eventually takes root”, said Mr Lim.
In particular, companies can consider three growth strategies: market diversification, mergers and acquisitions as well as banding together to venture overseas.
“Asia will remain a bright spot,” added the minister, who cited International Monetary Fund figures that forecast growth of about 6.9 per cent for emerging economies this year and 6.1 per cent next year despite the economic downturn.
Mr Lim was speaking at the Singapore International 100 Ranking, an annual exercise that recognises the top companies ranked by overseas revenue.
Palm oil giant Wilmar International was the big winner out of 839 companies that submitted entries for the survey, which is compiled and organised by IE Singapore and DP Information Group.
Wilmar topped the list with a 191 per cent growth rate in overseas revenue. It also ranked first in the China, India, Middle East and North Asia markets in terms of overseas revenue contributions.
Wilmar’s executive director (commercial) Teo Kim Yong, who received the award from Mr Lim, said the firm was “honoured to be ranked No.1. Wilmar has benefited from Singapore’s excellent infrastructure… and its proximity to key Asian markets and beyond”.
A new category – the Top 10 Internationalising SMEs – was introduced to rank small- and
medium-sized enterprises on their overseas revenue.
Sineurope, which supplies high-end seafood products such as shark’s fin and sea cucumber, was top with $67.5 million of overseas revenue, derived mainly from North Asia.
Managing director Melvin Foo said the firm was “shocked to discover they ranked first” but happy that 20 years of effort in expanding overseas had paid off.
Another new category – Top 10 Fastest Growing Internationalising Companies – saw property and retail group Wing Tai Holdings dwarf its competitors with a compounded annual growth rate of 1,161 per cent for the 2005 to 2007 period.
Its chief operating officer Tan Hwee Bin said: “We appreciate the award which recognises our success over the past three years.”
Mr Ted Tan, deputy chief executive of IE Singapore, pointed out that the total overseas revenue of the top 100 companies had increased from $75.8 billion in 2004 to $173 billion last year – a testament to the growth of Singapore firms internationally.
He said financial institutions should avoid adding to the credit crunch “by looking at a firm’s fundamentals and helping fund their ventures overseas”.