Batam Targets SME Investors from Singapore and Malaysia
Batam is broadening its strategy to attract investment by targeting micro, small, and medium enterprises (SMEs) from Singapore and Malaysia. This move is expected not only to increase investment in the community business sector but also to open opportunities for Batam’s SME products to penetrate international markets.
These opportunities were highlighted during a panel discussion titled ‘Capturing Investment Opportunities From Neighbouring Countries – Preparing Local Business and Human Capital for the New Wave of Investment in Batam’, organised by the Vision Strategy Society (VIS) at the HARRIS Hotel Batam Centre on Friday (31/7).
The Director of Goods Traffic for the Batam Free Trade Zone Authority (BP Batam), Rully Syah Rizal, stated that the forum serves as a platform to bring local entrepreneurs together with investors from various countries, thereby opening wider opportunities for business collaboration.
According to him, VIS does not only gather large-scale investors but is also beginning to build networks of small and medium enterprises from Singapore and Malaysia interested in developing businesses in Batatam.
Several target sectors include food and beverage (F&B), clinics and healthcare services, and retail businesses, which are considered to have a direct impact on the local economy. “Particularly small and medium sectors, which may not be massive, but can increase investment in Batam,” he said.
Rully emphasised that the established cooperation model is not solely about inviting foreign investment into Batam. Local SMEs are also being encouraged to utilise these networks to expand their markets into Singapore. “In addition to inviting SME-category investors from Singapore, it also provides opportunities for SMEs in Batum to export. It is a reciprocal arrangement,” he noted.
One of the opportunities currently being explored relates to the needs of Singapore’s culinary industry. According to Rully, several businesses in Singapore are looking for production kitchens in Batam that meet Singaporean operational standards. This trend arises due to high operational and property costs in Singapore. Given its proximity and more competitive production costs, Batam is considered to have a strategic advantage as a production base.
The existence of international-standard production facilities is believed to help businesses develop culinary ventures with maintained quality but more efficient operational costs. Rully cited a similar cooperation model already visible in the Singaporean chicken rice business, which has expanded in Batam. “In Singapore, there is only one tenant, but in Batam, there are already around 10 tenants. Although the scale is still small, it continues to grow,” he said.
He added that these culinary products maintain Singaporean quality standards and have received a positive response from the Batam community. The forum, attended by entrepreneurs from Singapore, Malaysia, South Korea, China, and Indonesia, is expected to foster new business networks capable of strengthening the SME ecosystem and enhancing Batam’s investment competitiveness.