80% of companies in SCCCI survey flag rising costs as top concern amid global uncertainty
The Government is moving to ease regulatory burdens for SMEs.
Eighty percent of businesses surveyed in Singapore by the Singapore Chinese Chamber of Commerce and Industry (SCCCI) expressed concern over rising costs, up from 65% the previous year, amid global uncertainty triggered by the Middle East conflict. The government is addressing the issue by easing regulatory burdens for SMEs, with more firms anticipating lower profits in 2026.
Key concerns include market uncertainty, weaker demand, supply chain disruptions, manpower availability, and the need for transformation and pivot towards new growth areas. Despite these challenges, 78% of respondents expect profitability in 2026, with 56% projecting lower profits compared to 2025. Companies are coping by absorbing higher costs, passing some on to customers, cutting costs, and diversifying into new markets.
Roughly 45% of businesses are experimenting with AI tools cautiously, facing hurdles such as uncertainty regarding comprehensive adoption, lack of in-house expertise, and implementation costs. Malaysia, Indonesia, China, Vietnam, and Thailand are the top destinations for international expansion, while Singapore businesses aim to leverage the region's growth potential, strengthen sourcing, and expand manufacturing capabilities.
The government plans to improve regulatory efficiency and reduce compliance burdens for SMEs, with initiatives such as streamlining approvals for medical clinic operators and businesses within the Changi Airport development. The aim is to save time and money while fostering a pro-business environment across agencies.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
