Singapore firms less optimistic of growth in international trade, but plan to deepen links with Asean, India: HSBC study 

[SINGAPORE] Nearly nine out of 10 Singapore-based businesses say they are rethinking their long-term business models and planned investments in light of the recent tariff turmoil, according to HSBC’s 2025 Global Trade Pulse Survey.

The survey polled 5,750 businesses from 13 markets – including 250 firms from Singapore – with international operations and a turnover of between US$50 million and US$2 billion. Research was conducted between Apr 30 and May 12.

The survey also found that Singapore firms expect revenue to decline by 22 per cent on average due to supply-chain delays.

In the city-state, 83 per cent of the firms are optimistic about international trade growth in the coming years, a smaller proportion when compared with their global peers (89 per cent).

But the survey noted that Singapore firms “are actively managing global uncertainties by tapping the Republic’s strong trade links with key corridors for growth”.

Given the current trade dynamics, one in two Singapore-based firms plans to increase trade with Asean and India (55 per cent) as well as mainland China (50 per cent). Beyond Asia, Singapore firms also plan to trade more with Europe (46 per cent) and the Middle East (38 per cent).

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On a similar note, firms in the Republic plan to move or scale their operations in South Asia (56 per cent), mainland China (46 per cent) and Europe (38 per cent).

“Resilient and adaptable”

Gilbert Ng, HSBC’s head of banking for Singapore, corporate and institutional banking, noted that Singapore businesses continue to be resilient and adaptable despite the tariff and trade uncertainty.

“While supply chains may be further reconfigured, there continues to be strong potential for local companies to leverage Singapore’s strong trade ties and tap opportunities that we see emerging from India, the Middle East and Europe.”

Among the Singapore firms, 59 per cent cited rising costs from tariffs and other trade-related factors as the biggest concern. As a result, 42 per cent of Singapore firms have adjusted their prices to account for the higher costs, with 44 per cent planning to do the same.

In addition, 42 per cent of Singapore firms have increased their inventory levels to manage supply disruptions, with 46 per cent planning to do as well.

At the same time, the survey found that Singapore firms are taking the opportunity to boost operational efficiencies. One in two Singapore firms (56 per cent) has developed new products and services, while 59 per cent have adopted new technology or digital platforms.

Despite trade tensions, 43 per cent of the Singapore firms surveyed have maintained their production capability in mainland China while expanding to other markets, with 40 per cent planning to do the same.

Singapore firms also indicated cash and liquidity management as the most helpful form of support in managing working capital (61 per cent) amid trade disruption. This was followed by improved payment terms with buyers and suppliers (56 per cent), and supply chain finance (56 per cent).

Aditya Gahlaut, HSBC’s regional head of global trade solutions in Asia, noted that against a backdrop of trade uncertainty, many companies have held back on their capital expenditure to “assess the new normal”.

“Working capital has become a high priority C-suite agenda item for many clients because much of it is now trapped in either inventory or receivables,” he said.

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