80% of companies flag rising costs as top concern amid global uncertainty: SCCCI survey

An SCCCI survey of 540 Singaporean businesses has found that 80% of respondents are concerned about rising business costs, up from 65% a year earlier. This growing worry stems from market uncertainty, weaker demand, and supply chain disruptions caused by the Middle East conflict. Despite this, 78% of businesses expect to remain profitable in 2026, although 56% anticipate lower profits compared to 2025.

To address the situation, SMEs are absorbing higher costs, passing some increases to customers, cutting costs, and exploring new markets. A majority of businesses are also experimenting with AI tools, but face challenges in fully integrating them, including uncertainty, lack of expertise, and costs. The government is taking steps to ease regulatory burdens for SMEs, including improving regulatory efficiency and reducing compliance burdens.

Additionally, businesses are looking to Southeast Asia for growth potential and are advocating for streamlined administrative processes to help them tackle AI, climate change, and technological change challenges.