Singapore’s small and medium-sized enterprises (SMEs) are displaying the lowest confidence globally in international expansion, according to Kreston Global’s latest Interpreneur Report. Despite scoring 7.2 out of 10, compared to a global average of 8.2, 66% of Singaporean business leaders remain optimistic about a more favourable environment for international growth in the next two to three years.
The report, based on a survey of 1,100 international entrepreneurs across 11 countries, highlights the challenges faced by mid-market businesses in navigating global expansion. Helmi Talib, Managing Partner at Kreston Helmi Talib, Singapore, noted that Singapore’s reliance on trade makes it vulnerable to global headwinds such as geopolitical tensions and supply chain disruptions. “Whilst ambition remains strong in Singapore, we are seeing a more cautious, selective approach to international expansion,” Talib stated.
Key threats identified by Singaporean interpreneurs include geopolitical instability (52%), supply chain disruption (43%), and tariff-related cost increases (42%). Despite these challenges, Singapore’s SMEs prioritise economic growth prospects, favourable tax policies, and access to skills and talent when considering international expansion.
The report also reveals a pragmatic approach towards technology and AI, with 97% acknowledging its impact on expansion strategies. However, Singaporean businesses are more likely to view AI’s impact as moderate or minor compared to their global counterparts.
Liza Robbins, CEO of Kreston Global, emphasised the resilience and adaptability of interpreneurs amidst these challenges, highlighting the importance of internal alignment and readiness to seize future opportunities.
