Singapore's leading firms becoming more global

SINGAPORE'S drive to get local companies out into the global marketplace is going great guns.

The top 100 globalised companies here grew even more global last year, as their combined overseas revenue shot up a spectacular 56 per cent, past $144 billion.

This emphatic success was disclosed by IE Singapore last night in its third annual ranking of companies according to their overseas revenue.

Last year's top five companies were again in the top 10, and all - except Singapore Airlines, whose revenue fell 7 per cent - posted growth in their overseas revenue.

Emerging top dog in overall dollar terms for the second straight year was shipping giant Neptune Orient Lines, with overseas revenue up 6 per cent to $11.4 billion.

Multi-franchise motor group Jardine Cycle & Carriage jumped 13 places with a revenue surge of more than 500 per cent, as it was likely to have been boosted by its consolidation of Indonesia's Astra International in August last year.

Deputy Prime Minister and Minister for Law S.Jayakumar, who spoke at a gala dinner to recognise the firms, said it was 'heartening to note that Singapore firms have made excellent progress in their globalisation efforts this year'.

The most lucrative markets for Singapore firms remain those that are closest, with South-east Asia, which made up 27 per cent, still the No.1 source of overseas revenue for a third year running, said IE Singapore.

The agency conducted a survey in conjunction with the rankings of the companies' high-priority overseas markets and main challenges faced in these markets.

Professor Jayakumar added that with further energy cooperation within Asean to 'create an open energy market' and with the regional bloc also 'engaging various countries in a slew of free trade agreements (FTAs)', Singapore companies can expect to reap further benefits from the region.

Not surprisingly, China played a key role, making up the second- largest piece of the pie after South-east Asia, said IE Singapore.

And it was voted the market of highest priority by the top 100 companies.

With the planned Asean-China FTA, Singapore firms will gain enhanced market access and improve their products' cost-competitiveness, said Prof Jayakumar.

The list featured 32 new entrants. Wilmar International, one of Asia's largest integrated agribusiness groups, led the debutants by seizing the No.4 spot and earned the most overseas revenue in the emerging markets of China, India and the Middle East out of all the participants. In one of the largest reverse takeovers, Wilmar was listed on the Singapore Exchange in July last year.

A total of 788 companies submitted entries to participate in the 2007 ranking, said IE. Singapore Food Industries (SFI) was one of the fastest-growing firms, with a revenue surge of more 2,600 per cent. In October last year, one of SFI's subsidiaries, Daniels, bought British firm Farmhouse Fare for $28.3 million.

IE said Singapore firms continue to face challenges even as they are getting better at globalising.
One of the top concerns again was the lack of skills and human resources. To overcome these obstacles, Prof Jayakumar urged Singapore companies 'to share their experience and network when they explore opportunities abroad'.