The survey reveals the deep impact on business outlook in Singapore:
Yet businesses are still increasing their investment in growth:
Singapore’s firms are continuing to invest in Asian expansion in spite of over two-thirds expecting cross-border trade to become more difficult than it was pre-pandemic. Indeed Singapore’s businesses are doubling down on intra-regional trade; year-on-year trade with mainland China, the leading trade partner, has increased (50%, from 43% 2019) and there has also been strong growth in trade with ASEAN members, including:
Iain Morrison, Head of Global Trade and Receivables Finance, HSBC Singapore: “There’s no doubt that Singapore’s businesses have been hard-hit; it comes with the territory of being one of the world’s most internationally connected trading hubs. Yet it’s encouraging to see that they’re still investing for growth; digging deep to strengthen Asian trade links and seeking open, easier and safer trade. The formation of the world’s largest trade bloc under RCEP - signed after Navigator was conducted - couldn’t have come at a better time; creating a more coherent trading zone that hands Singapore firms a step-up to greater market access.”
The Regional Comprehensive Economic Partnership (RCEP) was signed on which ushers in a new era of trade and investment openness, diversity and resilience to Southeast Asia and its partners.1
As they prioritise growth overseas, nearly all businesses in Singapore express concerns about their supply chain, mainly with regard to time spent on management, instability and possible tariffs – all at higher levels compared to their global counterparts.
The vast majority of businesses are intent on reshaping, not restricting their supply chains in 2021 – investing at a more immediate pace than their global counterparts with a focus on:
Mr Morrison continued: “Firms are on the front-foot in pursuing technologies to overcome the cracks exposed in global supply chains. They know that digital is the key to building resilience, now the challenge is in formulating an ‘innovation elixir’ – combining technologies to make meaningful changes across their businesses.”
The Navigator survey is conducted on behalf of HSBC by Kantar. This survey of over 10,000 businesses spans 39 countries, markets and territories. It was conducted between 11 September and 7 October 2020. Markets in scope: Europe: Belgium, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Russia, Spain, Sweden, Switzerland, UK. Asia-Pacific: Australia, Bangladesh, mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Vietnam. Middle East & North Africa: Egypt, Saudi Arabia, Turkey, UAE. North America: Canada, Mexico, USA. South America: Argentina, Brazil. Rest of Africa: South Africa.
For more information visit: https://www.business.hsbc.com/navigator
HSBC Group’s history in Singapore dates back to 1877 when its founding member, The Hongkong and Shanghai Banking Corporation Limited, opened its first branch on the island. A qualifying full bank, HSBC in Singapore offers a comprehensive range of banking and financial services including retail banking and wealth management; commercial, investment and private banking; insurance; forfaiting and trustee services; securities and capital markets services. One of the earliest banks to establish in Singapore, HSBC today is a prominent player in Singapore's financial services sector serving the banking needs of multi-national corporations, home-grown businesses, private banking clients, institutional and retail customers. In May 2016, HSBC locally incorporated its retail banking and wealth management business in Singapore and established, HSBC Bank (Singapore) Limited. HSBC Singapore has a retail network of 13 branches (comprising 10 dedicated HSBC Premier Centres, 2 HSBC Jade Centres and a Premier International Centre) and many locations across the island providing self-service terminals.
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