POTENTIAL FOR SINGAPORE CONSTRUCTION AND CONSULTANCY FIRMS TO EXPORT THEIR SERVICES TO SOUTHEAST ASIA

Abstract

There are many business opportunities for Singapore construction and consultancy firms in Southeast Asia due to its booming economy and high construction demand. The aim of this study is to assist Singapore construction and consultancy firms (hereinafter ‘firms’) to choose their export destination in Southeast Asia. The objectives are to: (1) identify the countries in SEA that Singapore firms predominantly export their services to, (2) investigate the criteria that Singapore firms use in choosing the Southeast Asia country to offer their services (3) identify the SEA countries which have high potential for Singapore firms to export their services to (4) recommend to Singapore firms the criteria to be used to evaluate which SEA country or project to offer their services. Using a specially designed questionnaire, data were collected from experts who have had experience in managing projects in Southeast Asia. The data collected was analysed using SPSS software. The one sample T-test revealed that 11 out of 17 factors significantly affect the selection of a Southeast Asia country to export services to. The factors are: (1) volume of projects that the company has in Singapore, (2) financial strength of the company, (3) network connections in host country,(4) political stability of host country, (5) positive economic growth of host country, (6) high demand for construction services in host country, (7) legal system of host country, (8) language used in host country, (9) acceptability of construction industry in host country towards overseas firms, (10) level of credit risk occurring in host country, and (11) volume of projects in Singapore's construction industry. The statistical results were validated via in-depth face-to-face interviews with industry experts from firms that offer different types of services in Southeast Asia. Myanmar, Vietnam, Malaysia and Indonesia are found to be countries that Singapore firms can potentially export their services to. However, country credit risk and credibility of clients need to be carefully assessed.