DBS Forecasts Boost in Foreign Investments and SME Benefits Amid Easing Wage Growth in 2024

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DBS envisions 2024 as a year of economic rejuvenation for Singapore, with key sectors like manufacturing, trade-related services, finance, and insurance poised to drive growth. The influx of foreign direct investment (FDI) into Singapore presents an opportunity for small and medium enterprises (SMEs) to benefit from technology transfer, innovation, and technical know-how.

DBS experts foresee a softer labor market, providing relief on wage growth and mitigating cost pressures for SMEs. The insights were shared at the inaugural DBS Market Outlook Series at the DBS Asia X campus in Fusionopolis. The event aimed to assist SMEs in navigating the complex global landscape, with over 70 companies from 12 sectors participating in the two-hour dialogue.

Koh Kar Siong, Managing Director, and Group Head for Corporate and SME Banking at DBS emphasized Singapore’s appeal for foreign investment due to its business-friendly environment, regional connectivity, and skilled talent pool. This creates significant opportunities for local SMEs, especially those with sustainable practices.

DBS remains committed to supporting SMEs in areas such as regional connectivity, sustainability, and digitalization. Leveraging its strong presence in core markets beyond Singapore, including China, Hong Kong, India, Indonesia, and Taiwan, DBS aims to help SMEs scale their businesses.

Ray Kwan, Director of South Asia, Middle East, and Africa (SAMEA) International Business Division at the Singapore Business Federation, highlighted the cautious but keen overseas expansion sentiment among local businesses. SMEs with existing ventures abroad may experience stronger business growth, and collaboration with financial and business partners familiar with overseas markets can aid in navigating uncertainties.

Chua Han Teng, Economist at DBS, emphasized the expectation of a softer labor market in 2024, easing wage pressures for businesses. The evolution of Singapore’s labor market, responding to cooling demand and easing shortfalls, may result in a marginal increase in unemployment rates.

Representatives from Gprnt.ai and InfoComm Media Development Authority (IMDA) were also present to share insights on sustainability and digital transformation. Gprnt.ai showcased how technology simplifies ESG disclosures for SMEs, while IMDA introduced its Digital Leaders program, encouraging businesses to embrace digitalization for growth opportunities.