Expanding Your Business Under RCEP: How Singapore SMEs Can Tap ASEAN Markets for Growth

If you’re running a small business in Singapore and looking for growth beyond the local market, the numbers all point in one direction: outward. And thanks to the Regional Comprehensive Economic Partnership (RCEP) — the world’s largest free trade agreement — regional expansion has never been more accessible.

Since RCEP took effect in January 2022, Singapore-based SMEs now have lower trade barriers, streamlined customs processes, and clearer investment protections across 15 Asia-Pacific countries. But despite the opportunities, many small business owners still don’t know how to take full advantage of it — starting with strategic company incorporation in new markets.

This guide breaks down what RCEP means for your business and how to use it strategically to expand into ASEAN and beyond.

What is RCEP and Why Does it Matter?

The Regional Comprehensive Economic Partnership (RCEP) is a trade agreement between:

• The 10 ASEAN member states
  
• Plus China, Japan, South Korea, Australia, and New Zealand
  

Together, RCEP covers:

• 30% of global GDP
  
• 30% of the world’s population
  
• And nearly one-third of global trade
  

For SMEs based in Singapore, RCEP:

• Simplifies export and import procedures
  
• Offers preferential tariffs on goods traded across member countries
  
• Enables easier movement of services and investments
  
• Standardises rules of origin, making it easier to qualify for benefits across all RCEP partners
  

In short: RCEP gives you access to a massive customer base with fewer barriers and more predictability.

1. Identify Which Markets Make Sense for You

Not all RCEP markets are equal — and not all are relevant to your business.

Start by asking:

• Where is there growing demand for your product or service?

• Where can you compete effectively on price, quality, or delivery?
  
• Do you already have inquiries or traffic from other ASEAN countries?
  

If you’re an e-commerce business or B2B supplier, markets like Malaysia, Indonesia, Vietnam, and Thailand often offer natural next steps.

2. Understand Tariff Benefits and Trade Rules

Under RCEP, more than 90% of tariffs will eventually be eliminated — but the phase-out period and rates vary by product and country.

You’ll need to:

• Check your product’s HS code
  
• Refer to Singapore Customs’ RCEP resources or trade portals
  
• Track which markets offer immediate tariff reductions for your industry
  

Knowing this helps you price more competitively — and forecast margins accurately when entering a new market.

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3. Leverage the Simplified Rules of Origin

RCEP introduces a common set of rules of origin across all members, meaning goods made in multiple RCEP countries can qualify for preferential treatment.

This is a big win for businesses that:

• Source components from multiple countries
  
• Manufacture in one RCEP country and sell to another
  

For example, if you’re assembling products in Malaysia with parts from China and Singapore, you can still enjoy tariff preferences when exporting to Japan — as long as the overall production qualifies under RCEP rules.

4. Streamline Your Incorporation and Compliance Strategy

Cross-border expansion isn’t just about trade — it’s also about establishing entities, managing taxes, and staying compliant in multiple jurisdictions.

Consider:

• Whether to set up a local subsidiary, branch, or rep office
  
• Local licensing or product regulations
  
• Tax obligations under both local and Singapore law
  

While RCEP eases trade, each country still has its own regulatory and tax frameworks. Planning ahead reduces friction later — especially when it comes to financial reporting, VAT/GST, and profit repatriation.

5. Go Digital to Manage Multi-Market Growth

Managing multiple markets doesn’t mean building multiple back offices. Invest early in digital tools to centralise:

• Accounting and invoicing
  
• Inventory and logistics
  
• Tax tracking across jurisdictions
  

With a digital-first financial setup, you can scale faster, respond to regulatory needs, and avoid cash flow bottlenecks as your business grows across borders.

6. Use Government Grants and Resources

Singapore’s government actively supports regional expansion — and several grants or tools can be paired with RCEP opportunities:

• Market Readiness Assistance (MRA) Grant – up to 70% support for overseas market set-up and promotion
  
• Enterprise Development Grant (EDG) – for upgrading capabilities tied to cross-border growth
  
• GoBusiness GovAssist – trade support, RCEP tariff finder, and market insights
  

Don’t just go it alone — tap into what’s available to reduce costs and speed up expansion.

Summary

RCEP isn’t just a policy win — it’s a growth roadmap for Singapore SMEs willing to think regionally and act boldly. With the right financial, compliance, and operational strategies, you can move from local success to regional scale — without getting buried in red tape.

If you’re planning to expand into ASEAN markets, RCEP gives you the framework. Your job is to prepare your business to use it — from pricing and trade rules to financial reporting and cross-border compliance.

Using a Company Incorporation Service as an extension of your team

Setting up a company in Singapore can be challenging, but with professional support, it can be simple, Counto’s mission is to support your new business, take away the complexities of compliance, and save you time and money throughout the year. Speak to us directly on our chatbot, email [email protected], or use our  contact form to get started.

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