ALTHOUGH businesses have gotten used to travelling less due to the pandemic, many are still looking forward to expanding abroad once borders reopen, said Linus Goh, head of global commercial banking at OCBC Bank, on Monday (Feb 21).

With Singapore being a small island city-state, companies have "no other option" but to connect with overseas markets, and being physically present is still the best way to seek customers and find new partners, he said at The Business Times - Budget Dialogue 2022, presented by OCBC Bank.

"The reality is that travel and connecting with overseas markets is a must… There is a pent-up demand and feeling of anticipation to be able to reconnect," said Goh.

"I know that there are many businesses who have been able to connect well digitally, but I think they will be the first to recognise that if you're seeking new customers, seeking new partners, opening up new markets, you have no choice but to be there physically."

With the post-Covid era presenting many opportunities, Singapore businesses will want to be out there, said Goh.

Sustainability is one such emerging area. In the past couple of years, there has been a "significant shift" on this issue, he noted. Firms used to see going green as doing good for society, but not necessarily as being good for business.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

"But today, you see more and more companies who recognise that (going green) is good for business (and this has) become a lot more clear," said Goh, adding that there is now a growing pool of firms who are serious about going green.

When OCBC launched its SME Sustainable Finance Framework in 2020, the bank received a very strong response, he added. Several hundred small- and medium-sized enterprises took up green loans to start on their transition to being more sustainable.

On top of that, many SMEs are themselves leading the green wave in the economy, said Goh: "They are the ones who are providing the R&D, the consulting, the services in climate change, in carbon, in energy efficiency, so they are helping even bigger companies like us to make that shift."

"So I definitely agree that there is an opportunity for business. This in itself can be a catalyst for business and for Singapore to become something of a hub," he added.

Digitalisation is another wave that is set to continue. The pandemic has lifted the overall standards of digitalisation in Singapore, and the journey should not stop here just because countries are opening up and travel is resuming, said Goh.

Going digital pays off, he added, citing OCBC's findings that in 2021, firms which were more ambitious with their digital plans outstripped those that have been slower to go digital by 4 times their sales performance.

Singapore businesses who have pivoted in a faster and more comprehensive way than their regional peers also now form significant nodes in the regional supply chain.

"That really is not something to be traded away," said Goh. "It has to be reinforced and you, in a way, have to complete that journey in order to realise the full benefits of the endeavour," he added.

READ MORE:

• Budget measures will help firms build on pandemic lessons, make Singapore a more attractive 'magnet global city'

• Carbon tax hike a 'strong signal' that Singapore is serious about green targets: Tan See Leng