How should companies approach business opportunities in markets with high risks of repression and political threats?
Maren Schweizer
CEO
Schweizer World Pte Ltd
Besides various business-linked KPIs (key performance indicators) and risk management factors, economic openness, IP laws, flexible workforce, and predominantly FTAs (free trade agreements) as well as support by developed countries such as Singapore, are decisive for an investment decision.
Schweizer’s electronics manufacturing businesses have to wait and see in respect to any investment in emerging countries. As an automotive player, supply security is a must, while backup capacities are a no-go due to standards, qualification and tight gross margins.
Nevertheless, our digital ecosystem businesses – low capex and ROI (return on investment), lower fixed cost, and are easy to move – are valuable to test the ground in high-risk countries. Lastly, advanced manufacturing opens opportunities to reshore businesses. The Myanmar issues serve as an accelerant.
