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Go East;

 

PLUNGING OIL AND COMMODITY prices are bringing more opportunities for small businesses overseas. Developing countries in the Pacific Rim that once focused most of their efforts on attracting large U.S. companies are now stumping for small ones by cutting red tape, easing equity restrictions, and even offering government venture capital and loan funds. Among them:

Singapore has unveiled a new $45-million venture capital fund to entice start-ups to that country.

Malaysia created an investment fund of about $400 million, which makes foreign businesses eligible for five-year, low-interest loans.

Indonesia streamlined investment and licensing procedures and instituted measures to ease credit and cleanse its corrupt customs service.

The moves represent a rethinking of development policies in the Far East. Until now, policies were skewed in favor of big companies that could develop natural resources. Requirements that foreigners take on local partners discouraged smaller companies. But now these nations target small businesses to create jobs and transfer technology and management skills. "The newer companies have the technology and the entrepreneurial talent that we need," says Peck How, regional director of the Singapore Economic Development Board.

For small and midsize U.S. companies, the new policies open a window to local capital. Says Eldridge Wood, president of Inter-Pacific Capital Corp.: "They represent opportunities to minimize the risk of setting up offshore manufacturing operations in the Asia market."