Singapore is stable, well-connected, and built to enable cross-border trade and regional management. But how can you use it properly as a platform to enter and expand into other new markets overseas?
Businesses that are expanding internationally from Singapore usually share the same starting point: they see opportunities overseas but need guidance on growing their presence in a structured and sustainable way. With this in mind, we discuss:
- Expanding from Singapore and identifying target markets
- Singapore government support for overseas expansion
- Planning your market entry strategy
- How we can help
Expanding from Singapore and identifying target markets
From our experience, businesses typically begin to look closer to home where they have the benefit of a close operational distance. If you are building from Singapore, the first expansion markets are often the Association of Southeast Asian Nations (ASEAN) economies.
Malaysia, Indonesia, and Vietnam are commonly considered, depending on the sector. Increasingly, these countries are where we’re seeing opportunities for business growth within ASEAN. They are close enough to manage and travel to, and supply chains often fit naturally.
You might also hear about the “Singapore plus one” approach where Singapore is described as the place for regional headquarter functions complemented by a “plus one” location for land- and capacity-intensive operations. This usually involves either Johor in Malaysia or the Batam, Bintan and Karimun (BKK) islands in Indonesia.
Southern Johor, in particular, is increasingly considered by companies, especially with the attention around the Johor-Singapore Special Economic Zone (JS-SEZ). A bilateral initiative between Singapore and Malaysia, the area is being organised into nine zones across 11 sectors, including manufacturing, logistics, digital economy, financial services, green economy, and others.
With both countries introducing measures to make this cross-border operating model more efficient, the JS-SEZ is likely to be a key theme for businesses in 2026.
Singapore government support for overseas expansion
One reason Singapore is such a strong base for subsequent expansion is that the ecosystem is built around internationalisation. You have agencies that support market entry, networks that help companies connect across the region, and schemes that reduce the cost of first moves.
Assistance from government agencies
For companies who have yet to start in Singapore, you’ll want to know what will take weeks versus months, what approvals matter as well as how labour and tax rules might influence your plan. The various government agencies here, such as the Singapore Economic Development Board (EDB) and Enterprise Singapore, can help you understand what it actually means to begin operations here.
The Workshop by EDB, for example, can be helpful because it is not only about “why Singapore”. We’re a partner of The Workshop and in these discussions, our team will take the time to understand your business and provide expert guidance based on the sector you're operating in.
In case you missed it, we talked more about The Workshop here:
Financial schemes and grants for international growth
For some businesses, cash flow can be a constraint when entering new markets. For others, market research, introductions to partners, and support setting up an initial footprint are the immediate priorities to kickstart expansion. Singapore’s support landscape is therefore built around these two realities. Below are some of the key financial schemes that you can incorporate into your expansion plans:
1. Market Readiness Assistance (MRA) grant
If you’re taking your first step into a new market, the MRA could be the first grant to use when venturing overseas. This is a co-funding grant that can cover your overseas market promotion, business development, and market setup costs. It can provide up to 50% support, capped at SG$100,000 per company per new market.
It is designed for companies that are new to the target market and meet the criteria, including having at least 30% local shareholding and turnover or headcount thresholds.
2. Enterprise Financing Scheme - Trade Loan (EFS-TL)
The EFS-TL supports companies that require working capital for trade-related activities, including inventory financing, pre-shipment financing, and receivables financing.
Eligible Singapore companies with at least 30% local ownership and group turnover of up to SG$500 million can access loans of up to SG$10 million. Enterprise Singapore shares the risk with participating financial institutions, making it easier for companies to secure financing.
This scheme is particularly relevant for companies scaling export operations or managing cash flow as overseas sales grow.
3. Enterprise Financing Scheme - Mergers and Acquisitions Loan (EFS-M&A)
For companies expanding through acquisitions, the EFS-M&A provides financing of up to SG$50 million with repayment periods of up to five years.
The scheme supports acquisitions that contribute to internationalisation, whether through acquiring overseas entities or, in some cases, domestic companies that strengthen global capabilities. Eligibility criteria are similar to other EFS loans, including Singapore registration and local shareholding thresholds.
This can be used by growth-stage or mid-sized companies looking to accelerate expansion through strategic acquisitions.
4. Double Tax Deduction for Internationalisation (DTDi)
Additionally, you may claim a 200% tax deduction on qualifying overseas expansion expenses via the DTDi. Up to SG$150,000 of qualifying expenses can be claimed automatically each year without prior approval.
As of the latest Budget, the scheme was extended and will continue until 31 December 2030. It is widely applicable and can be used by companies of different sizes, provided the expenses relate directly to internationalisation activities. While the DTDi does not provide cash funding, it can deliver meaningful tax savings for Singapore companies expanding abroad.
Planning your market entry strategy
You’ll also want to think about what you want to achieve next when expanding your business globally from Singapore. The market entry strategy should match your speed requirements, risk appetite, and the level of local presence required to compete.
If your product or service can be delivered without a local entity at the beginning, you may start by selling cross-border from Singapore. You can work through local distributors or agents. This is a low-commitment way to learn more about the market and can be viable if the customer decision cycle does not require a heavy on-the-ground presence.
If you want local leverage, partnerships can work well when the objectives, decision rights, and exit options are clear.
Additionally, there is the option to invest directly, either by acquiring an existing company or by forming a new entity. Acquisitions can provide immediate scale, but you will need to be prepared to integrate the people, processes, and compliance posture. If you’re looking at this route, it is also where financing schemes, such as the EFS-M&A Loan, can be taken into consideration.
On the other hand, wholly owned set-ups can give you more control and typically suit long-term strategies.
Choosing a suitable business structure
From an incorporation standpoint, we typically encourage businesses to think about whether you need a formal presence at all and, if you do need a presence, what business structure best matches your risk and operations. Then, once the structure is chosen, how to stay compliant after incorporation, because ongoing obligations tend to be where businesses underestimate the workload.
A branch is generally simpler to establish because you are extending the Singapore entity into the foreign jurisdiction. But bear in mind the Singapore parent remains fully exposed. Liability will typically sit with the parent if the branch signs a lease, hires employees, or encounters a dispute.
A subsidiary tends to be the default for businesses that are planning to build a long-term presence. It can help ring-fence liabilities and give you a clearer operating platform for hiring staff, getting licences, and signing local contracts. In many markets, a subsidiary may also simplify commercial conversations because you are a local counterparty.
You will, however, need to meet requirements for a local director, registered address, or minimum capital commitment to successfully incorporate. After registration, you will also need to factor in local accounting, tax filing deadlines, and other mandatory compliance matters. These are all areas that we can assist you with as you expand your business internationally from Singapore.
How we can help
Every jurisdiction, whether that’s Malaysia, Vietnam, or outside of ASEAN, has its own incorporation process, documentation standards, and approval timelines. As a result, company registration overseas can become complex and time-consuming when you’re not familiar with the requirements.
Our main takeaway here is to factor in buffer time into your expansion plan and to find partners who understand both the regulatory environment and practical expectations on the ground.
If you’re considering starting in Singapore, you can reach out to our team directly or connect with us via The Workshop by EDB. Our Singapore-based team is experienced assisting companies across different sectors and can help you with your company registration, licensing, and talent acquisition.
For business growth beyond Singapore, we can work closely with you to continue expanding into new markets and growing your presence overseas. Read our latest case study on how we’ve supported TCL CSOT in their international expansion strategy.
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