Why Singapore Companies Are Expanding to Thailand in 2024

Over the past 18 months, we've seen a 40% increase in inquiries from Singapore-based companies looking to establish Thai operations. At this week's Singapore Regional Business Forum in Bangkok, the message was clear: Singapore businesses are surging into Thailand—and the opportunities are just getting started.

1. Cost Arbitrage Is Real—and Significant

Singapore operating costs have skyrocketed. Office rent in Bangkok's prime districts runs 60-70% lower than equivalent space in Singapore's CBD. Thai engineering talent costs 40-50% less than Singapore equivalents, while customer service and administrative roles can be 60-70% cheaper.

For a 20-person team, that's a difference of S$300,000-500,000 annually in salary costs alone. For Singapore HQs looking to maintain margins while scaling, Thailand isn't just an option—it's a necessity.

2. Government Backing Is Accelerating Growth

Thailand's Board of Investment (BOI) is aggressively rolling out incentives to attract Singapore investment. At the Singapore Regional Business Forum, BOI Secretary-General Narit Therdsteerasukdi highlighted corporate tax incentives for joint EV manufacturers using 40% locally-sourced materials—a clear signal that Thailand is serious about building high-value supply chains with Singapore partners.

This isn't just about tax breaks. It's about Thailand positioning itself as the manufacturing and R&D hub for companies looking to serve ASEAN markets while maintaining Singapore headquarters for strategy and finance.

3. The Digital Economy: "We've Barely Scratched the Surface"

Ping Soon Kok, CEO of Singapore Business Federation, put it bluntly at the forum: "Traditionally, Singapore's investments in Thailand have been in real estate, food and beverage and retail. But in the digital economy, we've barely scratched the surface."

This is the opportunity. While traditional sectors are saturated, digital services—SaaS, fintech, e-commerce platforms, data analytics—remain wide open. Singapore companies with proven models at home are finding Thai enterprises hungry for digital transformation, with less competition than in Singapore's crowded market.

4. Real Success Stories Are Emerging

Eigen Energy's Thailand expansion since 2022 proves the model works. As Geraldina Koh, Eigen Energy's Thailand Country Manager, shared: "The market in Thailand is large enough to ensure that smaller players with a good market strategy can still enter."

This is critical for Singapore SMEs. You don't need to be a unicorn to win in Thailand. The market is fragmented enough that focused players with clear value propositions can carve out profitable niches.

5. Financing Infrastructure Is Maturing

Cross-border financing is getting easier. Bangkok Bank's Singapore branch—operating since 1957—is actively connecting opportunities, providing trade financing and working capital for Singapore companies expanding into Thailand.

On the venture side, Singapore's established VC ecosystem is increasingly filling funding gaps for Thai startups, creating a two-way flow of capital and deal flow. Singapore investors get access to Thailand's growth stories; Thai companies get access to Singapore's sophisticated capital markets.

6. Thailand as ASEAN Launchpad

Thailand is not just a destination—it's becoming the launchpad for Singapore companies eyeing Vietnam, Laos, Cambodia, and Myanmar (CLMV). The logistics infrastructure, trade agreements, and regional headquarters ecosystem make Bangkok the natural coordination point for ASEAN-wide operations.

As one forum participant noted: "Having the right networks and knowledge of the land is very helpful to Singapore companies." Thailand provides both—established Singapore business networks in Bangkok combined with deep local market knowledge that's difficult to replicate elsewhere in the region.

7. Thailand as ASEAN Execution Hub

Smart Singapore companies are keeping HQ functions (strategy, finance, senior leadership) in Singapore while moving execution (sales, operations, customer success) to Thailand. This "Singapore brain, Thai muscle" model gives them the best of both worlds:

• Singapore credibility and governance standards
• Thai cost structure and market access
• Regional coordination from Singapore, local execution from Bangkok

8. The Talent Pool Is Deep—and Eager

Thailand graduates 100,000+ university students annually. English proficiency in Bangkok's professional class rivals Singapore's, especially among younger workers. And unlike some neighboring markets, Thai talent stays—turnover rates are 30-40% lower than Vietnam or Indonesia.

9. Governance Bridge: The Critical Piece

Here's where most Singapore-Thailand expansions fail: governance gaps. Singapore boards expect reporting standards, compliance frameworks, and financial controls that Thai operations struggle to deliver without guidance.

The solution isn't to accept lower standards—it's to build Thai operations with Singapore governance from day one. This means:

• Proper entity structuring (BOI incentives where applicable)
• Financial reporting systems that satisfy Singapore HQ
• Compliance frameworks from the start, not retrofitted
• Hiring that prioritizes bilingual, governance-aware talent

What This Means for You

If you're a Singapore company considering Thailand expansion, the window is open—but getting it right requires more than just setting up an office. You need local expertise that understands both Singapore governance expectations and Thai operational reality.

The Singapore Regional Business Forum made one thing clear: the companies moving now are positioning themselves for ASEAN leadership. Those who wait risk finding the best opportunities already captured.

We've helped Singapore fintech, SaaS, energy, and professional services companies establish Thai operations that satisfy their boards while actually working on the ground. The pattern is consistent: start with a 4-week pilot, validate the model, then scale.