Singapore firms feel trapped at home as costs, red tape stall overseas ambitions

SINGAPORE: Singapore companies are under real pressure right now. Costs are climbing, budgets are tightening, and finding the right talent is getting harder.

According to a recent survey by KPMG and the Singapore Institute of Directors (SID), these challenges are making it tougher for local businesses to expand overseas or take the leap into new technologies like AI.

The survey, which gathered views from 1,000 professionals, managers, executives, technicians, and business owners, paints a clear picture of what’s holding companies back—both beyond Singapore’s borders and at home.

For organisations looking to expand abroad, cost is the biggest hurdle. Over half, or 51% agreed that the high rates, fees, and charges made things difficult for them. Others said that problems with financing (26%), supply chain-related troubles (25%), high tariff rates (22%), and the lack of knowledge about foreign markets (22%) added to their survival issues. A few also cited that local regulations of the host country can deter a growing company’s day-to-day operations.

So, what would help? Respondents said tougher trade alliances, more focused financial backing, and better digital trade advancement could help a lot in enabling Singapore businesses in foreign countries.

When it comes to technology—particularly AI espousal—businesses also meet obstructions. Over half mentioned the dearth of trained talent (54%) and high application expenses (52%), while virtually half confessed they don’t have a clear plan (48%).

Skills disparities (57%) and inadequate labour force flexibility (35%) are reducing efforts to build teams that can vie internationally. Respondents highlighted the necessity of nonstop upskilling, job reforms, leadership advancement, and better paths for career adaptation and an international talent program.

At its core, the survey sends a clear message—to stay competitive in an increasingly global and digital economy, Singapore businesses must find ways to manage rising costs, close skills gaps, and embrace innovation.