BY KOH HUI THENG

SMALL and medium-sized enterprises (SMEs) in Singapore are expanding their businesses to overseas locations where few have ventured.

Home-grown Beacons Pharmaceuticals is one example - it is opening its first overseas factory in Uzbekistan, formerly part of the Soviet Union, by the end of next year.

Beacons' general manager, Ms Gwen Goh, told my paper: 'Instead of going to China and India like everyone else, we would rather focus on untapped markets like Uzbekistan in Central Asia.

'The pharmaceutical industry there is in its infancy, so we can be a pioneer and have a headstart when it takes off.' Beacons' business philosophy could well be a model for other SMEs keen on expanding abroad.

According to a survey by branding consultancy A.S. Louken and the Association of Small and Medium Enterprises, two out of five SMEs said they intend to venture abroad in the next 12 months.

And, despite the recession, four out of five among the 152 companies polled in June and July said they expect to grow in the coming year.

'This is likely due to improved business sentiments, compared to the March period,' said Mr Luke Lim, chief executive of A.S. Louken.

The BreadTalk Group, for example, is banking on countries in the Middle East, such as Saudi Arabia, to grow its standalone retail-bakery concept. Said senior vice-president of group brand development, Ms Joyce Koh: 'The Middle East does not have a boutique-bakery concept, so it offers an important first step for our expansion in another region.'

Most SMEs polled say they plan to maximise growth mainly through expansion of operations - both in Singapore and overseas - as well as through branding and marketing, cost reduction and increased capital.

Other measures include raising the quality and variety of products and services offered.

Going overseas also presents another opportunity for SMEs to grow further, amid the current challenging economic conditions.

According to a survey by the Singapore Chinese Chamber of Commerce and Industry released last Friday, three in 10 SMEs ventured abroad because of the need to expand and diversify their client base.

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