Finding safe harbour in 2024's political storm

This year will see monumental change and a record number of elections worldwide. 40 countries will have their political agendas reshaped by old and new regimes looking to sure-up their leadership. This shift will have ripple effects for trade policies, bringing a wave of uncertainty to internationally minded businesses.

By Mark Worthington, Managing Director and Co-Founder, H/Advisors Klareco

Incumbent Governments have had a tough term as they’ve been forced to navigate a pandemic, recessions, and volatile geopolitics. As a result, 2024’s elections could see dissatisfied voters instigate an overhaul of international relations and trade policies. It’s a year where businesses will need to brace themselves for stormy seas and seek an even keel for growth.

Amidst the turmoil, Singapore’s transfer of leadership has been long planned with economic stability and political continuity at its core. Sitting in the centre of the developing ASEAN economy and as a result of strategic planning, Singapore is increasingly attractive to businesses and now the de facto gateway for eastward expansion.

With the changing dynamic in Hong Kong, the dismantling of the UK’s global trade network post-Brexit, and elections slowing down individual trade negotiations, Singapore has been a linchpin in the UK’s renewed international trade strategy. Through a series of agreements and treaties, such as the Trade Agreement , Digital Economy Agreement , and new Strategic Partnership, the UK and Singapore have steadily cultivated a strategic economic partnership.

The new post-colonial, post-Brexit partnership is one of equals. Over 5,000 British businesses and 45,000 British nationals call the island-state home. The trade value between the two nations has increased, with exports from the UK to Singapore seeing 22% year-on-year growth exceeding $24-bil- lion (SGD). At the same time, imports from Singapore to the UK have seen a rise of 10.2%, totalling over $12-billion (SGD). The result? Singapore offers a stable harbour for UK businesses seeking safety in rough economic seas.

British businesses aren’t the only ones seeking economic refuge. As Singapore’s global appeal for Asian expansion strategies grows, so too does the competition for survival, market share, and talent. Unlike Europe and the US, however, the Asian economy is much more diversified in terms of culture, media, skills, average income, and GDP.

The region is bursting with opportunity, but to understand and navigate the waters requires a regional headquarters and a team that can provide deep understanding and expertise of consumer and market dynamics. From January to November last year, for every 10 companies that formed, more than 7 closed their doors in Singapore. Tactics that are deemed good in a western headquarters are usually insufficient to stay afloat in the Asian market.

Treaties and agreements are good for buoyancy, but a company’s operations, market positioning, regulatory understanding, and approach to Government need a local navigator for smooth sailing. Businesses need to differentiate themselves and explain what they can offer in a regional context to cut through the noise of the competition, build the customer base, and attract the talent needed to expand across the region.

Success in this region is determined by local expertise and a deep understanding of the new regional landscape. The most successful will develop their regional story, outlining their values, their offering, and what makes them relevant. The narrative needs to be tailored to resonate with the diverse audiences across different countries, like Singapore’s concentrated and competitive media ecosystem and Indonesia’s expansive and varied media landscape. A one-size-fits-all Asia strategy is not enough. A nuanced strategy that tailors the message to each country and segment is essential to capture market share and attract top talent.

With more and more British businesses landing on Singapore’s shores, businesses will need local leaders who can help build the brand’s authentic credibility and quickly adapt to regional dynamics. While more established organisations with a global footprint may find this easier, new entrants seeking to make the most of the economic relationship will need to focus on building the right in-house expertise, or find the right external partner to offer insight-led strategic counsel. Partnering with experts who understand the differences and opportunity is key to not only surviving, but thriving in this growing and dynamic economy.

Plain sailing though is far from guaranteed, and businesses still need to keep watch for the ripples of international instability crashing against Singapore’s shores. The new norm is that the unexpected quite literally needs to be expected, and with elections that have the power to change dynamics as close as Indonesia and Thailand, businesses need to be prepared. Any business plan should also include crisis procedures and scenario planning for escalating geopolitics that could undo any positive progress in an instant, however safe the harbour.

About the Company

H/Advisors Klareco is a leading consultancy in Southeast Asia and part of a global strategic advisory network extending to 23 countries with 1,500 experts. H/Advisors Klareco is known for its award-winning work in enhancing corporate reputation, advising on significant financial transactions, and tackling complex communication challenges like cyber-attacks. It serves as a trusted advisor to both world-leading multinationals and Asia-based companies. For more information visit www.klarecocomms.com.