Singapore SMEs Eye Malaysia For Expansion Plans This Year - Survey

KUALA LUMPUR, March 14 (Bernama) -- Malaysia is one of the most preferred locations for Singaporean small and medium enterprises (SMEs) with expansion plans, a survey by the United Overseas Bank reveals. UOB Mid-Sized Corporates Business Sentiment survey conducted in December last year showed 37 per cent of the 1,600 mid-sized Singaporean companies expressed intentions to expand their business in Asia this year. Of these, 21 per cent are eyeing Malaysia as a potential location for business expansion, while China is at the top of the list (27 per cent), with Indonesia and Vietnam tied in third place (15 per cent). "Prospects are positive for companies eyeing Malaysia as an expansionary destination," said Chan Kok Seong, UOB Malaysia Chief Executive Officer, in a statement Wednesday. He said Malaysia's facilitative and open policies to attract foreign direct investments, such as the 100 per cent allowance for foreign equity holdings and funds repatriation to their base country, have made it attractive. He also said there was high interest from Singapore companies wanting to establish a presence at Iskandar Malaysia in Johor. "We believe the close proximity to Singapore is a key consideration as it allows Singaporean companies to manage their business from their doorstep," he said. Chan also attributed the higher interest among Singaporeans to set up businesses in Malaysia to the recent announcement by the Singapore government in wanting to reduce its dependency on foreign labour. The extension of the Mass Rapid Transit system from Singapore to Johor Baharu within the next four to five years was another positive factor, he said. "In recent months, UOB Malaysia has received an increased number of enquiries from Singaporean companies about purchasing industrial factories and warehouses in Johor Baharu, especially from those in the food and beverage industry," he added. -- BERNAMA