Singapore’s small and medium-sized enterprises (SMEs) are increasingly prioritising overseas expansion and technology adoption to navigate a volatile market landscape, according to the latest DBS Business Pulse Check Survey. Conducted between December 2025 and January 2026, the survey revealed that 82% of the 730 companies polled are planning to internationalise in 2026, with the information and communications and manufacturing sectors leading the charge.
The primary motivations for this strategic shift include reaching new customer bases (49%) and building a stronger overseas brand presence (43%). SMEs emphasised the importance of connections with trusted local partners and access to market insights for successful market entry.
Technology, particularly artificial intelligence (AI), is also playing a crucial role in enhancing competitiveness. Whilst 67% of respondents are already utilising AI, only 12% have fully integrated it across their operations. The information and communications, electronics manufacturing, and professional services sectors are at the forefront of AI adoption, whereas the wholesale and trade sectors lag behind.
To further AI adoption, SMEs identified financial support, expert guidance, and partnerships with technology providers as essential. Additionally, sustainability readiness has improved, with 49% of businesses considering themselves prepared, up from one-third last year.
Despite challenges such as tariffs and trade restrictions affecting 36% of respondents, 57% expect improved business performance in 2026. Chen Ze Ling, Group Head of Corporate and SME Banking at DBS, noted: “The survey reflects the pragmatic approach many SMEs are taking to navigate an uncertain environment.”
The annual survey underscores the strategic initiatives SMEs are undertaking to build resilience and sustain long-term growth amidst a challenging economic backdrop.
