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AMID a challenging business environment in 2024, Singapore companies could grow their annual revenue by S$14.5 billion, and create 12,300 jobs through projects supported by Enterprise Singapore (EnterpriseSG).

But this falls short of the growth of S$16.4 billion projected the year before, because fewer companies launched transformative projects in productivity, internationalisation and innovation in 2024.

At EnterpriseSG’s year in review on Thursday (Jan 23), chairman Lee Chuan Teck attributed the drop to challenges such as geopolitical uncertainties and higher business costs in 2024, which could have “dampened companies’ appetite to transform and grow”.

Companies are also grappling with technological disruptions, including artificial intelligence and decarbonisation, he noted.

“In the face of these challenges, there are more companies, understandably, focusing on their immediate issues, rather than looking to grow and transform for the future,” he said.

In 2024, EnterpriseSG supported 11,500 enterprises in growing their revenue and cost competitiveness.

Of these, 2,300 embarked on transformative projects in 2024 – below 2023’s number of 3,000 enterprises, but closer to the pre-Covid figure of 2,800 in 2019.

Transformative projects are larger-scale projects with bigger growth impact and typically take longer to be implemented.

Despite the lower numbers, the projects undertaken in 2024 are expected to “have very strong outcomes”, said Lee.

On average, each company expects an increase in annual revenue of S$8.6 million in 2024, up from S$5.7 million in 2023.

This is “not unexpected”, he added. This is because “more marginal” projects will take a back seat as companies worry over current business conditions, while the “stronger” projects will surface.

In 2023, EnterpriseSG began sharing projected revenue figures instead of the committed value-added amounts of its projects, in response to feedback from companies that top-line figures were more relevant.

Still, 2024’s projected annual revenue growth is far below 2019’s figure of S$20.9 billion.

Lee said that it would be “hard to say” how long it would take for Singapore to return to pre-pandemic revenue levels, given the increasingly challenging business environment.

But he urged companies to look beyond the current global volatility, and instead focus on pockets of growth they can capture elsewhere.

For instance, many Singapore companies are well-placed to seize opportunities in areas such as green energy, healthcare and food security.

“While there’s a lot of focus on cost pressures – Trump, global uncertainties, tariffs and all… we should not lose sight of longer-term trends and opportunities,” said Lee.

Furthering growth in 2024

In 2024, EnterpriseSG supported companies in expanding abroad by facilitating deals and adopting global standards. These moves are expected to raise their annual revenue by S$5.5 billion.

Those that undertook internationalisation projects can each expect an increase in annual revenue of S$8.8 million, up from S$7.7 million in 2023.

While South-east Asia and China still remain among the top markets of interest for companies, more are heading further afield – to the Middle East, Europe and the US, for example.

The Middle East, in particular, has a “huge need” for infrastructure investments, food security, healthcare and urban solutions, Lee noted.

In terms of productivity, EnterpriseSG’s efforts in helping companies become more efficient and more competitive are projected to boost annual revenue by S$8.2 billion.

Average cost savings of about S$230,000 per company are expected upon the full implementation of projects.

In innovation, EnterpriseSG facilitated companies’ product development and process innovation efforts in areas such as advanced manufacturing and sustainability.

These projects are expected to boost annual revenue by S$0.8 billion, with an increase of S$10.2 million in revenue for each company in 2024 – almost double the S$5.2 million in 2023.

Apart from transformative projects in 2024, the statutory board supported 9,200 enterprises on more foundational capability upgrading projects and market exploration initiatives.

More than three-quarters of these companies adopted digital solutions in areas such as accounting and sales, customer service and inventory management. Those exploring new markets turned to trade fairs, overseas marketing and partner sourcing.

EnterpriseSG noted that more companies heading overseas for the first time focused on finding potential overseas partners with the experience and networks to ease them into new markets.

Looking ahead

With global economic uncertainties expected to persist, helping companies must go beyond the quantum of financial support, said Lee.

Rather, EnterpriseSG will need to be “creative” in the way it delivers support and will employ differentiated strategies to support the needs of companies of all sizes.

First, high-growth companies looking to scale will be supported through EnterpriseSG’s Scale-Up programme, which has so far taken in more than 100 businesses in 10 cohorts.

The first five cohorts of Scale-Up had a combined 36 per cent – or S$2 billion – increase in revenue, three years after joining the programme. They also generated more than S$600 million in value-add and created close to 800 good jobs during this period.

Second, the statutory board will continue to support partnerships between small and medium-sized enterprises (SMEs) and large enterprises. Such partnerships facilitate knowledge exchange and enable the SMEs to innovate, grow their capabilities and access new markets through the larger companies’ networks, it noted.

Third, to help companies in nascent sectors such as precision medicine, offshore wind and climate tech, EnterpriseSG will build connections with key partners in established markets to help them access customers, investors and expertise.

Fourth, it will enhance and expand its outreach to companies through channels such as the new SME Pro-Enterprise Office, expected to launch in the first quarter of 2025.

EnterpriseSG will also look at improving grant processes for companies, as well as work with trade associations and chambers to uplift the capabilities of SME Centres.

A new digital platform containing programmes, tools and resources tailored to SMEs is set to be rolled out in phases from the second half of 2025.