Rising Business Costs Top Concern for Singapore Companies Amid Global Uncertainty

Dragon Media News Desk

Rising business costs have emerged as the biggest concern for Singapore companies as geopolitical tensions and global economic uncertainty continue to weigh on business sentiment, according to a survey by the Singapore Chinese Chamber of Commerce and Industry.

The survey, released on Wednesday, showed that 71.8 percent of respondents identified rising business costs as their primary concern.

Other major challenges included the availability of suitable manpower and the need for business transformation to capture new growth opportunities.

The ongoing conflict in the Middle East has further increased uncertainty, with respondents citing higher operating costs, market volatility, weaker demand and supply chain disruptions as the main risks facing businesses.

Companies have also become more cautious about the outlook. Thirty-eight percent of respondents expressed a neutral view of business prospects, while 34 percent were pessimistic and only 20 percent were optimistic.

Reflecting the subdued sentiment, just 34 percent of businesses expect their revenue to increase this year, down from 39 percent in 2025.

Although 78 percent of respondents still expect their businesses to remain profitable, more than half of them anticipate lower profits compared with last year.

The survey also identified Malaysia, Indonesia, China, Vietnam and Thailand as the leading overseas markets for Singapore companies seeking expansion opportunities.

Meanwhile, 45 percent of respondents said they were experimenting with readily available artificial intelligence tools. However, limited technical expertise and implementation costs remain major obstacles to wider AI adoption.