Tech horizons: Expanding markets via Singapore and India

Sri Lanka needs stronger ties with tech hubs

India has rapidly emerged as an economic giant and a technology hub in the past two decades, while Singapore has solidified its position as a regional hub for businesses. Fortunately, Sri Lanka finds itself in close proximity to India and not far from Singapore. Yet, the key lies in leveraging these two economic powerhouses for enhanced collaboration to attract business, investments, and crucially, for market access.

Should Sri Lanka cultivate stronger ties with these hubs, as it stands to position itself as a crucial point in the value chain? Beyond considerations of South Asia and Southeast Asia, looking at the broader Asia Pacific region underscores the significance of partnering with Australia. However, the geographical distance may pose challenges. 

Establishing connections with Southeast Asia, particularly in the tech sector, is paramount for businesses. Singapore, already a thriving tech business hub, acts as a gateway to both regional and global markets, hosting the headquarters or regional offices of numerous multinational corporations. This makes it a pivotal entry point to the Southeast Asian, East Asian, Australian and New Zealand markets.

For Sri Lankan businesses, especially those in tech, overcoming the constraints of island boundaries has been an enduring challenge. The reality is that the local market is relatively small, and without attaining hub status, the tech sector remains somewhat detached from the global tech business arena.

India has successfully positioned itself as an offshore centre for many global businesses. The question for Sri Lanka is why it hasn’t become an integral part of this value chain. Discussions around the Sri Lanka-India Economic and Technology Cooperation Agreement (ETCA) in 2015 that included tech, emphasised collaboration. While there was a lot of opposition for such a trade agreement, that noise was quite political and my stance is that we should collaborate. Businesses should collaborate and our professionals should work in India and vice versa, however, make sure there is a skill assessment process for incoming tech workers from either country so that a flood of work migration is controlled. In 2024, there’s still no definitive tech collaboration between the countries, despite an ongoing round of renewed negotiations.

On the flip side, Singapore undeniably serves as the regional hub for global tech companies in the Asia Pacific and Southeast Asia. Connecting with Southeast Asia through Singapore offers access to the global business ecosystem, providing a gateway to a larger market share, a strategy crucial for revolutionising tech exports.

Singapore’s success is underpinned by world-class infrastructure, a robust financial sector, and a highly educated workforce. Ranked second globally for ease of doing business, Singapore’s transparent processes and business-friendly environment, coupled with straightforward labour laws, make it an ideal partner for tech ventures.

As a result of the economic crisis in 2022 and falling currency value, many businesses started to either incorporate entities or partner with entities in Singapore or Dubai. Basically, to park money in more stable financial systems, while only transferring the funds needed to run the operations in Sri Lanka, such as staff costs and rental costs. It is no secret that not only medium sized businesses but even the largest of the largest are doing this even right now. With the pressures of new taxation regulations as well as some of the anomalies therein, more digital companies are considering this route now. You cannot stop companies considering such business strategies in a globalised world, when the business realities are such. Patriotism can only go a certain distance, and from that point onwards, realities set in and if businesses are to survive and compete, they will take more efficient strategies. There is an opportunity for the Government to review some of this to see how it could be slowed down by helping businesses facing difficulties, create level playing tax grounds and encourage businesses to bring more money home. However, for businesses thinking of parking money elsewhere, it is more strategic to use that mechanism not just as a way of facing exchange rate and taxation headwinds, but also to use those business hubs for partnerships, business expansions and market access.

The pivotal role of tech and business partnerships cannot be overstated. To navigate this landscape successfully, familiarity with both Sri Lankan businesses and the dynamics of these hubs are crucial. Crafting alliances requires a deep understanding of business opportunities, cultures, and networks within these markets, all while adopting a long-term strategy that involves measured risks and staggered investments.

(The writer is a tech professional currently based out of Singapore. He has previously worked in Sri Lanka, India, Australia, USA, and the UK and travelled to over 20 countries for professional engagements. He is a Past President of the Computer Society of Sri Lanka (CSSL), has run a tech ed business in Sri Lanka and worked for multinational companies such as Meta and Accenture. He has authored four books and over 250 

articles.)