Singapore businesses are facing significant challenges from rising costs and supply chain disruptions, prompting a strategic overhaul, according to HSBC’s 2025 Global Trade Pulse Survey. The survey highlights that 85% of Singapore-based firms are re-evaluating their long-term business models in response to evolving trade policies, whilst 86% are exercising caution in expansion and investment plans. The anticipated revenue decline due to supply chain delays stands at an average of 22%.
Despite these hurdles, Singapore companies are capitalising on the nation’s robust trade connections to key growth regions such as India, the Middle East, and Europe. Gilbert Ng, Head of Banking – Singapore, Corporate and Institutional Banking at HSBC, noted, “Despite the challenges posed by the uncertain tariff and trade landscape, Singapore businesses are demonstrating resilience and adaptability in the way they operate.”
The survey also indicates that Singapore firms are slightly less optimistic about international trade growth compared to their global counterparts, with 83% expressing optimism versus 89% globally. Aditya Gahlaut, Regional Head of Global Trade Solutions, Asia, HSBC, commented on the strategic shift, stating, “Against a backdrop of trade uncertainty, many companies have taken a pause on their capital expenditure so that they can assess the new normal.”
As Singapore businesses navigate these complexities, the focus on leveraging regional trade ties and managing working capital remains crucial. This strategic adaptability is expected to help local firms mitigate the impact of global trade uncertainties and sustain growth in challenging times.
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