Tata Communications today revealed the findings of a research study into emerging markets and their impact on the global economy. The research aims to examine the experience and expectations of emerging markets as they look to build businesses beyond their home markets.
The report, conducted by independent research company Vanson Bourne, surveyed 1,600 business leaders from emerging and developed markets, and reveals that 96 percent of companies in Singapore have looked to emerging markets for growth opportunities, highlighting the growing influence of developing markets in the global economy.
According to the survey, companies in Singapore expect to increase their investment in emerging markets by 30 percent in the next year, the lowest of all markets surveyed. They also show the widest interest in global markets and are considering markets such as Chile, Mexico, Hungary, and Morocco for future expansion.
The study also reveals that 66 percent of Singapore companies are looking to China for growth. Singaporean business leaders who took part in the study also cited the lack of skilled staff, reliable communications infrastructure, and political instability, as critical barriers to moving into emerging markets.
Other key findings include:
- Singapore respondents stated interest for growth in China (66%), Indonesia (44%) and India (40%).
- Singapore respondents showed the widest interest in global markets, including Chile (21%) and Mexico (19%).
- Growth opportunities and competitive activity overseas are cited as the biggest factors for global expansion.
- 55% of Singapore respondents are already operating in emerging markets, with an expected increase in investment in emerging markets by 36% over the next year.
Vinod Kumar, MD and CEO, Tata Communications, said: "For companies to capitalise on that potential we need to see greater levels of investment in the infrastructure that is essential to support it. That will inevitably require more focus on developing talent and innovative thinking in markets that can have less educational investment in those areas."
He further added that businesses are prioritising communications and digital infrastructure as a critical part of their operations. The ability to manage those communications and to ensure reliability and security requires a level of global, and in particular, emerging market experience.
Sign up for MIS Asia eNewsletters.