Chinese F&B brands choose Singapore as overseas testing hub

Chinese community and business-friendly policies draw expansion efforts.

Chinese F&B brands are increasingly selecting Singapore as a testing ground for their overseas expansion, due to its transparent and business-friendly environment as well as its strong Chinese cultural influence, according to Joongshik Wang, EY-Parthenon Asia-Pacific Leader. 

“More and more Chinese companies are coming to Singapore, especially in the last five years,” said Wang. “The Singapore government provides the easiest way to set up a company, offering tax benefit schemes and government agents to help companies establish and grow their business in the region.”

Singapore’s ease of doing business, with its supportive policies and efficient systems, has made it an attractive location for Chinese companies looking to expand internationally. The F&B sector, in particular, has capitalised on these advantages to test the viability of their brands beyond the Chinese market.

A significant factor in this trend is the large Chinese community in Singapore, which comprises about 70-80% of the population.

“The Singapore local market is pretty much closer to the Chinese community. It’s very rooted, even though there’s a lot of vibrancy in Singapore’s F&B industry,” Wang explained. He added that Chinese brands use Singapore as a testing ground to determine if their products can succeed in international markets. “Singaporean lifestyle and expectations on products are always top-notch, which means Chinese brands can test their quality and brand power in Singapore.”

This strategy often leads to a “spillover effect,” according to Wang. If a Chinese F&B brand is successful in Singapore, it is likely to resonate with the broader Chinese community across Southeast Asia, a region with a population of 700 million people and significant cultural influence from China.

Beyond its demographic advantages, Singapore’s strategic location and economic integration in the region make it a natural hub for Chinese companies seeking to penetrate Southeast Asia. The city-state serves as a logistics, financial, and cultural hub, giving businesses easy access to surrounding markets.