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Business Times
16 minutes ago
- Business Times
Africa presents a promising new frontier for Singapore businesses
AS TRADE tensions and supply-chain disruptions reshape the business landscape, Singapore companies must look beyond traditional markets for sustainable growth. Africa's growth trajectory presents a compelling story. During my visits to Africa, I was struck by the continent's remarkable potential for growth, driven by its natural resources, demographic advantages, expansive consumer base and the innate creativity of its people. For instance, Kenya – which I visited in March – has become East Africa's technology powerhouse. There, innovations in mobile money are changing how millions manage their daily transactions. This dynamism is not unique to Kenya. While Africa is not homogeneous, similar stories of development and opportunity are unfolding in other parts of the continent. By 2050, Africa's population is expected to reach 2.5 billion, with African youth making up a third of the global youth population. The continent's economy is projected to grow by 3.6 per cent this year, above the global average of 2.4 per cent. This momentum is reflected in Singapore's bilateral trade with the continent, which grew from US$9.1 billion in 2020 to US$13.7 billion in 2024. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Overcoming hesitance Yet, despite Africa's potential, many Singapore companies remain hesitant, often deterred by distance, perceived risks and unfamiliarity. Overcoming these barriers requires companies to make a fundamental shift in their mindset and approach to new markets beyond our traditional neighbourhood. My work in helping companies internationalise, under Enterprise Singapore, has shown me how businesses can enjoy early-mover advantages and build scale when they take the road less travelled. Kitchen-appliance supplier Newmatic, for instance, faced a highly competitive market in Singapore. In 2015, it had the opportunity to partner with a distributor to enter Kenya. Since then, it has opened 14 showrooms across Kenya, Tanzania, Uganda, Angola and Nigeria. Doing business in Africa comes with challenges, from currency volatility to regulatory complexities. But companies would face similar challenges when entering any market – and can overcome them by investing time to understand local market nuances, conducting thorough due diligence and developing targeted strategies for mitigation. Where the opportunities lie For companies ready to venture into Africa, the growing focus on sustainability is creating new opportunities. One major area is the emerging carbon economy, within which Africa's vast natural resources position it as a key player. Singapore sees Africa as an important partner here, and has signed implementation agreements with Ghana and Rwanda. Besides carbon trading, there are opportunities in project development, consulting and carbon services. This potential attracted 22 Singapore-based companies to join an inaugural carbon-credits business mission to Ghana in July 2024. Among them was HydraX, which specialises in capital markets infrastructure. Its software enables countries to develop registries, exchanges or distribution platforms for carbon credits trading under Article 6 of the Paris Agreement. Beyond sustainability, Africa's digital transformation is unlocking opportunities across sectors. The continent's young, mobile-first population drives demand for innovative digital solutions. Riding this wave is Singapore-based fintech Thunes. Its cross-border payment network enables transfers to over three billion mobile wallets globally, connecting users across Africa and the rest of the world. Its partnerships with leading mobile money platforms in Africa have enhanced financial access, enabling real-time payments across the continent. As cities across Africa expand, there is growing demand for integrated urban planning, infrastructure development and smart-city solutions. This creates natural synergies with Singapore's expertise in sustainable urban planning and solutions. Surbana Jurong has been supporting Africa's development through its master planning, urban-design and complex engineering capabilities. SMEC, part of the group, has played an integral role in delivering major infrastructure projects across the continent, including the Nairobi expressway project in Kenya and the Msikaba bridge in South Africa. Opportunities are also being created by Africa's manufacturing drive. Amid global supply chain shifts, the continent presents a potential manufacturing base for companies seeking resilience. Many African nations are also prioritising local production to meet rising consumer demand and reduce import dependence. All this creates opportunities for Singapore companies across the manufacturing, logistics and energy sectors. Singapore-headquartered conglomerate Tolaram, for example, began manufacturing Indomie instant noodles in Nigeria and Ghana through a joint venture with Indofood. Recognising the continent's manufacturing potential, Tolaram then partnered with Kellanova to produce Kellogg's cereals and instant noodles for Africa and the Middle East. Today, it has grown into one of Africa's largest manufacturers of fast-moving consumer goods. Another example is Singapore-based agribusiness company Valency International, which recently established a US$40 million cashew processing plant in Cote d'Ivoire. The plant will process 45,000 tonnes of cashews annually and create over 2,000 local jobs. Gearing up for entry In today's business landscape, the question of engaging Africa has shifted from whether to do so, to how to do so. The continent is emerging as a strategic frontier market, driven by strong consumer demand while serving as a gateway for regional and global trade. Early movers who invest time to understand these markets will have distinct advantages. Companies can leverage Enterprise Singapore's Overseas Centres in Johannesburg, Nairobi, and Accra for on-ground support to navigate the intricacies of African markets. Through these networks, we facilitate partnerships and identify business opportunities. The upcoming Africa-Singapore Business Forum will further catalyse connections, bringing together businesses from both continents to explore new possibilities. As global economic dynamics shift, Africa represents not just an alternative market, but also a strategic imperative for Singapore companies' long-term growth. The opportunities are clear; the time to act is now. The writer is deputy managing director of markets at Enterprise Singapore
Straits Times
16 minutes ago
- Straits Times
PlayStation prices rise as US tariffs bite
Sign up now: Get ST's newsletters delivered to your inbox The new price for PS5 will be US$550 (S$707), with a 'Digital Edition' priced at US$500 and a Pro version for US$750. SAN FRANCISCO - Sony on Aug 20 said it is bumping up the price of PlayStation 5 video game consoles by US$50 (S$64.26) in the United States due to a 'challenging economic environment.' Tariffs imposed by President Donald Trump hike the cost of goods brought into the US, leaving companies like Japan's Sony to decide whether to pass that on to consumers. 'Similar to many global businesses, we continue to navigate a challenging economic environment,' Sony Interactive Entertainment vice-president of global marketing Isabelle Tomatis said in a post. After initially being threatened with a 25 per cent hike, Japan negotiated a 15 per cent tariff with the Trump administration. 'As a result, we've made the difficult decision to increase the recommended retail price for PlayStation 5 consoles in the US.' The new price for PS5 will be US$550, with a 'Digital Edition' priced at US$500 and a Pro version for US$750, according to Ms Tomatis. In May, Sony warned it was considering tweaking prices in the US, estimating that tariffs could wind up costing the company about US$680 million in the fiscal year. American companies are feeling the crunch, too. New York-based cosmetics giant Estee Lauder recently estimated the impact of the new tariffs at around US$100 million for the 2026 financial year and plans to adjust its prices to offset the additional cost. US snack giant PepsiCo could increase prices of its soft drinks about 10 per cent to mitigate effects of US tariffs, particularly those on imported aluminium used to make soda cans, according to trade magazine Beverage Digest. Meanwhile, California-based energy drink maker Monster Beverages is considering raising prices due to a 'complex and dynamic customs landscape,' according to chief executive Hilton Schlosberg. The Commerce Department this week said the US broadened its steel and aluminum tariffs , impacting hundreds more products that contain both metals such as child seats, tableware and heavy equipment. Since returning to the presidency, Mr Trump has imposed tariffs on almost all US trading partners. Though the impact of Mr Trump's tariffs on consumer prices has been limited so far, economists warn that their full effects are yet to be seen. Some businesses have coped by bringing forward purchases of products they expected will encounter tariffs. Others have passed on additional costs to their consumers, or absorbed a part of the fresh tariff burden. AFP
Straits Times
16 minutes ago
- Straits Times
Google unveils latest Pixel phones packed with AI
Sign up now: Get ST's newsletters delivered to your inbox Pixel 10 prices start at US$799 (S$1,027), with the Pixel Pro Fold model starting at $1,799. NEW YORK - Google on Aug 20 unveiled new Pixel 10 smartphones that promise more artificial intelligence capabilities, as it seeks to elbow out competition in the emerging AI-assistant market. Comedian Jimmy Fallon hosted a launch event in Brooklyn that blended Google product pitches with stars such as The Jonas Brothers band and Stephen Curry of the Golden Gate Warriors basketball team. 'This is exciting,' Mr Fallon, host of NBC's 'The Tonight Show,' said in an opening monologue. 'It's like a Taylor Swift announcement for nerds.' The line-up of new products included a foldable phone, improved Pixel smartwatch, and ear buds all synced to work with AI and each other. 'Pixel continues to be the best way for people to try out the latest bleeding-edge AI from Google,' product manager Tyler Kugler said during a briefing with journalists. Pixel phones claim a scant portion of a high-end smartphone market ruled by Apple, Samsung and Xiaomi, but custom Google hardware is an opportunity for the internet giant to highlight what is possible with its Android mobile operating system and the Gemini AI assistant. While Samsung routinely ranks as the world's top smartphone seller, its products run on Android software. Top stories Swipe. Select. Stay informed. World Israel says it has taken first steps of military operation in Gaza City Singapore 3 Sengkang Green Primary pupils suspended for bullying classmate, with 1 of them caned: MOE Singapore 18 persons nabbed and 82 vapes seized in HSA ops in Raffles Place and Haji Lane Business Chinese brands like Pop Mart, BYD, Joocyee expanding into S'pore as gateway to Asean market Life Why should we bear the burden of budget meals and app discounts, some S'pore hawkers ask Singapore Religion growing in importance for Singaporeans: IPS study Asia 'Disastrous, useless': New Zealand to overhaul high school qualification to lift falling standards Opinion Malaysia: The cost of public doubt over high-profile criminal cases 'Initially, Google Pixel devices were designed as a technological showcase to limit Android fragmentation and accelerate innovation,' said Forrester principal analyst Thomas Husson. 'Ten years later, the strategic challenge is still not to become the market leader, but to demonstrate the value of Google's integrated ecosystem.' AI competition The tactic promises to promote use of Google's platform by handset makers and is a spin on the way Apple ties together its iPhones and other devices with its software. Meanwhile, with Apple seen as lagging in the fierce AI race, Google has touted all-out efforts to integrate advanced AI throughout its offerings as it competes with powerhouses such as Amazon, Meta, and Microsoft. 'Its positioning remains premium and its market share is less than 5 percent, but in the age of AI, it is a true laboratory of innovation,' Mr Husson said of the Pixel smartphone line. It is also 'a means of countering Apple's integrated hardware-software-services strategy while remaining a strategic partner for Samsung and the Android ecosystem,' Mr Husson added. AI built into new Pixel phones lets Gemini AI assistant look through the cameras to 'see' what users see, answering questions or providing tips about locations, objects or situations, according to Mr Kugler. Google is not the only one putting AI in phones. South Korean consumer electronics giant Samsung has made AI a centrepiece of its Galaxy smartphone line and recently released a new Galaxy Z Fold7. Google's product team described the new Pixel Watch 4 as a redesigned experience that marks the biggest update to the line. Features include smartwatch fitness tracking fine-tuned to distinguish between activities such as walking, bicycling, or tennis. The Pixel Watch also enables users to command Gemini AI assistant from one's wrist. Gemini detects the mood of whoever is speaking to it and adjusts its responses accordingly, and can even 'look' through the phone camera to offer photo suggestions, according to the Google team. AI was also used to add 100x telephoto lens capability to Pixel smartphone camera. Pixel 10 prices start at US$799 (S$1,027), with the Pixel Pro Fold model starting at $1,799. AFP
