One in three Singaporean firms are pessimistic about business outlook in 2025: SCCCI survey

SINGAPORE: About a third of local businesses remain pessimistic about the business outlook this year, according to the Singapore Chinese Chamber of Commerce & Industry’s (SCCCI) annual business survey.

The survey found that 36.7% of respondents described their outlook as neutral, 33.4% as pessimistic, while 24.3% were optimistic. Only 2% said they were very optimistic about 2025.

The poll, conducted over 12 weeks between June and August, gathered responses from 711 businesses. Small and medium-sized enterprises (SMEs) made up the majority of participants at 93%, with the remaining 7% comprising larger organisations.

In terms of revenue expectations, 39% of businesses forecast growth this year, up from 33.4% last year.

However, more firms also expect revenue declines, rising to 32.7% compared to 29.1% previously. The proportion of businesses anticipating no change in revenue dropped to 28.3%, down from 37.5% a year ago.

The survey highlighted three main concerns among companies: rising business costs, difficulties in finding suitable labour, and the need to transform into new growth areas.

To navigate these challenges, more firms are looking beyond Singapore’s shores and half of the respondents said they are scaling up their overseas expansion plans, compared to 44% last year, particularly in Malaysia, China, Indonesia, Vietnam and Thailand.

Among firms pivoting to Southeast Asia, the main reasons cited were tapping into market potential (61.4%), sourcing goods and materials (29.3%), and managing geopolitical risks to improve business resilience (25.2%).

Companies also reported that they are diversifying into new markets (33%), sourcing from alternative suppliers (27.4%), and delaying investments (25.2%) in a bid to navigate the impact of US tariffs, which have led to greater market uncertainties and higher operating costs for many local firms.