Connectivtiy through digital technologies permit not only cross-border trade but also cross-border servicing as well as coordination.
Rising costs across developed Markets will require partial diversifications to manage productivity and growth well. Not everything can be done through automations and AI.
Profitability depends on the size of the market, spending power, and affordability. Indonesia and Malaysia will post significantly higher than many due to the presence of these winning factors especially market size.
Access to Internationalisation is open to all and no longer just SMEs including overseas competitors. Global diversifications for markets are required to stay competitive and promote growth.
The inflation and uncertainties today are huge regardless which country your business is based in. Diversifying markets and pivoting to other business industries are essential to managing the risks and ensuring survival.
Match Advisory is here to ensure that our clients get reliable contacts, network, insights, and credible support throughout the setup processes. Learning curve is definitely required but we make sure to make it manageable.
Indonesia is the biggest market in South East Asia in terms of GDP, Population, Size, and so on. The country offers tremendous opportunities to thrive and grow in success with rich natural resources, diverse culture, rich in nature, and growing prosperity across the archipelago. Indonesia is considered one of the most attractive country for many SMEs to consider to expand to.
The reality however, there are not many whom is able to directly expand to Indonesia due to lack of knowledge, insights, and contacts in the country. In Singapore only 100 SMEs were able to expand to Indonesia in 2021 and 300 in 2023. The numbers are growing but represent only less than 10% of the actual numbers of the interests.
The opportunities are in the market size, profitability margins, low costs, and also growth of the business. For example for many, the payback period in Indonesia is as short as 6 monhts whereas in Singapore the average payback period is 3 years. The challenges however, are compliance, language, culture, manpower, administrative requirements, speed of processing, and so on. To invest and grow in Indonesia, flexibilities and patience are required. It is chaotic but there is an order to it.
This is where Match Advisory can share more with you pertaining our more than 20 years of experiences in Indonesia. We are not experts in all industries but we understand how to start and grow businesses in Indonesia. Our forte is F&B, Services, Tech, Property, and Manufacturing.
Feel Free to Contact us for More information! We provide free business advisory!
To find reliable information about Indonesia, you should look into the Investment Promotion Board of Indonesia government rather than going to other countries' investment promotion board or economic development board agencies. You can find the link to Indonesia Investment Promotion Corporation below.
Please reach us at match.advisory.sg@gmail.com if you cannot find an answer to your question.
Yes since 2014, the government of Indonesia has introduce the requirement of having to put in paid up capital of more than IDR10 Billion to start a foreign owned entity in Indonesia (equivalent to about SGD$950K or more). However to register a foreign entity, you are only required to put a statement of pledge stating that you will be depositing the amount of IDR10 Billion or more as your Paid Up Capital over the next 4 years. This policy is to ensure that Indonesia will attract quality investments.
Yes you can import certain products into Indonesia provided they are not part of restricted and controlled items by the Custom and Immigration of Indonesia. The import tax however for most goods are well in the range of 40% and it will take certain administrative requirements and time to clear imported products. So it is not really recommended to import products to Indonesia if they can be sourced locally.
Depending on the product category that you are planning to produce in Indonesia. If it is under manufacturing than depending on the industry, the relevant statutory board will be the one in charge of the issue of the production permit. For consumable Food or Beverages for example, it is under the agency called BPPOM or Food License Agency. For Central Kitchen, Food Factory, and FMCG, they are under the care of BPPOM. Not all FMCG is under BPPOM. Coffee beans for example will fall under the Ministry of Agriculture.
Malaysia is a big market with a population of 25 million people and the rules as well as regulations are similar to Singapore and that of United Kingdom. The GDP in Malaysia is similar and slighly below SIngapore at US$407 billion in 2023. The ringgit is currently facing devaluation due to high gearing of Malaysia National Debt to IMF. This however gives an opportunity for a lower cost business operations and productions in Malaysia which can be 1/3rd of Singapore.
The legalities and compliance in Malaysia are clear and trasnparent similar to Singapore although in terms of Market spending, they are still below Singapore having more regional MNCs and offices based in Singapore. The challenge in Malaysia would be the relationships and network unlike SIngapore. In Malaysia, you will need to have some network and perhaps certain level of lobbying in order to get good deals and projects be it in the private or even in the public sectors.
Malaysia is good and opportunistic for SMEs for business operations as the capabilty and human resources in Malaysia are on par with Singapore. The focus however should be to serve Intenational Markets rather than just the domestic market in Malaysia. Match Advisory have built strong business network and understandings in Malaysia over 10 years. We are able to effectively provide credible insights and provide reliable business matching opportuntities.
Feel Free to Contact us for More information! We provide free business advisory!
To find reliable information about Malaysia, we recommend you visit the agency that is associated with your industry. But you can visit Malaysian Investment Development Authority to have better understanding about Malaysia market and compliance requirements.
It is important to understand your needs and also to map-out the journey and solutions as different business will need different network, insights, and solutions. Do approach us anytime and Match Advisory does not charge for Business Advisory services even if you do not engage us at the end for our services. We believe in building friendships and we understand the need to do research and due dilligence because business expansion overseas is always a big decision.
Hi Andre, thanks for guiding me and Edmund for the past 4 days. Appreciate your insights into Indonesia and your very helpful opinions!
Match had curated the list and ensure they are quality leads
The Business Matching was very useful and certainly an eye opener
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