A study on Singapore small and medium enterprises in the manufacturing sector of China.

• Main Authors: Ching, Wei Chin, Choo, Chee Ming, Lin, Chuan Wei
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::General
• Online Access: http://hdl.handle.net/10356/51802
• Institution: Nanyang Technological University

Small and medium enterprises (SMEs) today constitute a major portion of the economy of Singapore, in terms of employment, contribution to the gross domestic products (GDP), and foreign exchange earnings. The quality of their businesses, the comprehensiveness of their services and the level of skills will help determine how competitive the big enterprises can be. However, continuous strong growth of SMEs within the domestic market cannot be sustained and the time has come for local SMEs to look beyond Singapore for trade and investment opportunities. Recognizing the significance of SMEs in helping Singapore to develop an external wing, the objective of this report is to study the prospects oflocal SMEs venturing into China’s manufacturing industry and the possible problems they may face. We will also investigate the reasons behind SMEs venturing abroad and why China is regarded by many Singapore manufacturers as the ideal place to establish their production bases. For our survey, we sent our questionnaires to 110 small to medium enterprises and obtained responses from 34. The data collected was then analyzed to give an insight to our study. Interviews with some local investors were also conducted to reinforce our understanding of the investment environment in China. We hope that this project will provide local investors with useful information for research before they venture into the Chinese market. Although China has unprecedented opportunities for SMEs, but at the same time, they will face many stem challenges and difficulties which cannot be overlooked.