WhY 3S NEXUS?
3S Nexus was founded to address the need to strengthen commercial ties between Spain and Singapore/ASEAN countries, enhancing the presence of SMEs and START-UPS in these markets. Both are that one’s requiring greater support and count on a reliable partner to face the internationalisation process.
1. MARKET POTENTIAL
The economies of all ASEAN countries are very dynamic, resilient and in steady growth. The economy of the region has been growing at an average annual pace of 7.5% for the last 10 years, which means 5 points above the world’s average and 6 points above the EU. The ASEAN market is already the 5th largest economy in the world. The Mckinsey Global Institute’s list of Outperformers: High-growth emerging economies over the last 50 years includes 8 of the 10 ASEAN member countries. Singapore, Malaysia, Indonesia and Thailand appear on the list within top 7 long-term outperformers since 1965, while Vietnam, Myanmar, Laos and Cambodia are listed within the top 11 recent outperformers.
The economic integration project in a single market, the ASEAN Economic Community (AEC), which is the second most integrated regional grouping after the EU, is a catalyst for business development and investment, both externally and intra-Asean.
The AEC is a very robust market with a large ever-expanding middle-class, highly active consumers. It is undergoing a rapid urbanisation process and sharply increasing the infrastructure expenditure. It has a developed manufacturing industry, well-educated skilled workforce, low labour costs, a young population, natural resources, and good infrastructures and connectivity. Coupled with the countries capacity to complement one another (specially in supply chain and resources) like a well-oiled piece of machinery, this makes ASEAN countries markets with very high potential.
It is a highly attractive region for foreign investment. FDI inflows multiplied by 3.7 over the last decade, hitting US$174.7b in 2019. Almost the same value as China and India together and means the 13.2% of World’s total FDI. (source: World Data Bank)
14% of world trade takes place inside ASEAN, moving US$3.5T in 2019. Its trade balance has been positive for over two decades. ASEAN exports of goods and services increased by 84%, while imports went up by 93% since 2009. This growth means a strong expansion of its industry and services, which have been rising steadily, enhancing the spending power and driving the transition from a production to a consumer society.
The large market potential, the strategic geopolitical position between East and West (US$5.3T of world trade passes through the region), low tariff rates, trade agreements and the current trade tensions between China and the USA which are moving trade and investment to this region, create large and diverse opportunities nearly in every area. Spanish companies must take advantage of this and start investing in ASEAN country members.
We group opportunities in 4 key areas:
According to experts’ opinion, this market is thought to be the next economic centre of the world.
(“Malacca, gravitational centre and battlefield”, Josep Pique, Spanish Economist and former Minister of Foreign Affairs)
(“ASEAN: The outstanding journey toward the future epicentre of the global economy”, ABC, the oldest and 3rd largest Spanish newspaper)
3. UNDERREPRESENTED SPANISH BUSINESSES
In its internationalisation process, Spanish companies have usually opted to address to Europe for geographical reasons and to Latin America countries due to the language and cultural proximity, leaving more objective criteria aside.
The lack of knowledge about Singapore and Southeast Asian countries has slowed down the choice as potential destination markets.
As result, the presence of Spanish companies and Spanish expatriates in Singapore and Southeast Asia is scarce and lower than that of our European neighbours.
EU companies established in Singapore
Source: Chambers of Commerce and Embassy Websites
Spanish residents in ASEAN (2020)
- Philippines 47% 47%
- Singapore 22% 22%
In Singapore alone there are approximately 20,000 French expats, 45,000 Britons and 8,000 Germans. The number of Spanish expats is the same as that of Swedish community in Singapore, but the population of Spain is almost 5 times larger than that of Spain.
Source: Embassies and Chambers of Commerce
While, SMEs & Start-ups play a vital role in the economy of any country. They also face many obstacles to grow and develop.
According to researchers from the International Labour Orgnisation (ILO), and the Organisation of Economic Cooperation and Development (OECD), SMEs & Start-ups represents the folowing figures worldwide:
Therefore, at 3S Nexus, we put our resources and experience at the disposal of SMEs and Start-ups , in order to enable them to take advantage of market opportunities and foster collaboration ties with their Asian partners.
We want companies to lose their fear. We encourage them to take the leap and come to Singapore and Southeast Asia to explore business opportunities in this region. With us, you will have a loyal trustworthy partner to guarantee your success and offer assistance along your internationalization journey.