The Singapore Business Federation (SBF) has released its National Business Survey 2025, revealing a significant shift in business sentiment. Conducted between 27 March and 21 April 2025, the survey gathered insights from 526 businesses, highlighting a cautious outlook amid global economic uncertainty. The Business Sentiment Index (BSI) stands at 56.5, reflecting this cautious sentiment, with 40% of businesses expecting the economy to worsen over the next 12 months—nearly double the 22% from Q4 2024.
The survey indicates that sectors such as Hotels, Restaurants & Accommodations, and Retail Trade are particularly pessimistic, with the former registering the lowest BSI score of 52.2. Rising cost pressures are a concern, with the Real Estate and Hotels sectors anticipating the highest cost increases.
Despite the gloomy outlook, the Banking & Insurance and Education sectors show optimism, with BSI scores of 61.2 and 60.5, respectively. These sectors also report the highest revenue and profitability expectations. The outlook for business expansion is moderate, with a score of 61.6, driven by optimism in the Education and Banking & Insurance sectors.
The Singapore Budget 2025 has been well-received, with 92% of businesses expressing satisfaction or neutrality. Key measures such as the 50% Corporate Income Tax Rebate and the SkillsFuture Workforce Development Grant are seen as beneficial. However, liquidity remains a concern, with 22% of businesses facing credit crunches.
SBF CEO Kok Ping Soon emphasised the importance of continued transformation and collaboration with the government to address financing challenges. “It is heartening to see that transformation momentum remains strong,” he stated, highlighting the need for larger financing lines and longer terms to mitigate the impact of US tariff measures.
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