By Francis Chan

VENTURING overseas may be a risky step, but it has paid off spectacularly for many local companies, according to a survey released yesterday by DP Information Group.

The survey showed that 43 of the 50 fastest-growing companies in Singapore derived most of their income from foreign markets last year.

On average, the 43 companies generated 58 per cent of their revenue overseas - an estimated $26 billion.

'This is phenomenal,' Mr Ted Tan, the deputy chief executive of IE Singapore, said at the announcement of the survey results yesterday.

'It is a strong recognition that a lot of companies here are going overseas, and that is an effort that we welcome, from the Government and IE Singapore's perspective.'

Companies are ranked by compounded annual revenue growth rate (CAGR) over three years, which helps identify winners that have the ability to stay for the long haul.

About 8,500 companies operating in Singapore - from big guns to small- and medium-sized enterprises (SMEs) - were assessed by DP Information Group, a provider of business and credit information, before the Fastest Growing 50 were singled out.

The top 50 included 35 companies that originated in Singapore, while 16 were SMEs - up from 13 last year and four in 2006.

Gardenia International, the holding company of Gardenia Bakeries, topped the rankings, while Filtec, a wholesaler of batteries and tyres which took third place, was the SME with the highest CAGR.

Filtec managing director Jimmy Neo said efforts in expanding overseas gave his company the edge: 'We were focused on smaller markets that big companies tend to ignore. But as an SME, we were able to better serve the needs of other smaller businesses in those markets.'

The ambitious company has ventured into Fiji, Tonga, the Maldives, Mauritius and Turkey, among other traditional markets in Asia and Europe.

IE Singapore said this was a rising trend among many local companies, with more SMEs starting to show a higher level of interest in emerging markets such as Latin America, the Middle East, Africa and South Asia.

'We saw a natural progression for companies, as can be seen from the (top 50) list, to go beyond our shores into fairly unknown or less-trodden markets,' said Mr Tan.

DP Information Group will present awards to the top-ranked companies at a ceremony at The Ritz-Carlton, Millenia Singapore today.

This article was first published in The Straits Times on 23 July 2008.