Overseas revenues of top S'pore firms surge 56%

Singapore's top companies are powering ahead on the muscle of their external wings, with the overseas revenues of the top 100 globalised Singapore companies growing more than 56 per cent last year to more than $144 billion, said Deputy Prime Minister S Jayakumar yesterday.

But even as Singapore companies take greater strides further afield, the minister reminded them not to overlook their own backyard - the Asean region - which remains an important market.

Prof Jayakumar was speaking at the gala dinner for the Singapore International 100 Ranking 2007. Organised by International Enterprise (IE) Singapore with DP Information Group in collaboration with The Business Times, the list recognises Singapore's top 100 companies ranked by overseas revenue.

Topping the table again was Neptune Orient Lines with a record $11.4 billion in overseas revenue, followed by Jardine Cycle and Carriage and Singapore Telecommunications.

Of the 68 companies that managed to remain within the top 100 for two consecutive years, 82 per cent reported growth in their revenue from overseas. In addition, four out of five companies in this pool reported double-digit growth, said Prof Jayakumar, who is also the Coordinating Minister for National Security and Minister for Law.

He also said Singapore companies should continue to explore the Asean market and make use of the free trade agreements the grouping has signed with key markets like China.

According to a survey done by IE Singapore, about 30 per cent of respondents indicated that South-east Asia would be their priority market in terms of seeking overseas business ventures in 2007.

'With a population of more than 500 million, the Asean region remains an important market for Singapore companies. It is also a market that most Singapore companies are familiar with. Several key developments will benefit Singapore companies as they continue to explore the region,' said the minister.

He cited the agreement - made earlier this year - between the Asean members to deepen energy cooperation, especially for key infrastructure projects, including the Asean power grid and Trans-Asean Gas Pipeline. 'The intention was to create an open energy market in a bid to counter concerns over the negative impact that prolonged high oil prices have on economic growth and development in the region.'

He also urged Singapore companies to make use of the trade agreements that Asean has signed in order to penetrate key markets like China. Besides the Asean FTA, Asean has also concluded trade pacts with China and Korea. There are also on-going negotiations with Japan and India.

'By leveraging the Asean-China FTA, Singapore companies will be able to enhance their product's cost-competitiveness through tariff savings and secured enhanced market access for their services,' said Prof Jayakumar.

China was the next most popular destination after Asean, according to the IE Singapore survey.