MANY local firms still aim to go international despite the setbacks they have had to deal with over the past 18 months of economic downturn.

More than 54,000 firms here were given help last year to expand globally - an increase of about 30 per cent from 2008's 41,675 firms. Together, they generated about $15 billion worth of overseas sales.

The numbers came from Mr Sunny Verghese, chairman of International Enterprise (IE) Singapore, an agency that promotes international trade and aids local enterprises to expand.

Mr Verghese told a seminar yesterday that the agency also handed out $3.9 billion in grants and loans last year, five times more than in 2008.

SPINN, a creative video production company that expanded to Dubai last year, was one firm that benefited.

Chief executive Daniel Yew said IE provided more than just financial assistance: 'Most of IE's services are free and they are comprehensive - not just providing policy or financial support, but also having people on the ground with contacts and real knowledge.'

More companies see overseas expansion as an important tool for survival and sustainability, said Mr Verghese.

He cited a 2009 survey by DP Information Group, which showed that 69 per cent of small and medium-sized enterprises (SMEs) expanded abroad last year - up from 65 per cent in 2008.

The Singapore International 100 Ranking showed that top local enterprises recorded an 18 per cent increase in their total overseas revenue last year compared with 2008.

Mr Verghese said IE will continue to intensify its efforts to help local firms expand globally. 'Companies can look forward to over 400 IE-organised events and business missions to support your internationalisation efforts,' he said.

'We will align our capability with Spring Singapore to maximise the impact for SMEs, and empower trade associations and chambers to play a larger role in driving SME internationalisation.'

Dr Thierry Apoteker, managing director of Thierry Apoteker Consultant, told The IE Partnership Seminar held at Suntec City - which was attended by more than 300 people - that emerging markets offer attractive opportunities for firms keen to expand offshore.

'GDP growth in advanced areas like the United States, the eurozone and Japan will remain below potential for quite a while, even though recession is ending,' he said.

'Inflation expectations are likely to increase too, and the pressure on monetary authorities to tighten policies has started and is likely to increase.'

While industrialised nations are expected to experience a slow recovery, emerging markets are displaying more resilient growth. Even during the financial crisis, Asian, Middle Eastern and African regions showed positive GDP growth, said Dr Apoteker.

But emerging markets should still be treated with caution, as some developing countries face political and economical risks.

'We prefer countries with lower risks like China, India, Malaysia, but this doesn't mean that we can't go to countries with high risks,' added Dr Apoteker.

'What companies should do, is to properly incorporate the cost of risk.'

ynlee@sph.com.sg