Trade costs force 42% of Singapore firms to raise prices, HSBC finds

SINGAPORE: Rising costs due to tariffs and other trade-related factors, the biggest concern for almost six in 10 Singapore businesses, have led 42% of companies to increase their prices, according to Singapore Business Review, citing a recent HSBC report.

In addition to those that have already raised prices, 44% plan to do so soon, and 42% have increased their inventory levels to manage supply disruptions.

Rising costs and supply disruptions have also led eight in 10 businesses to reconsider their long-term strategies. Meanwhile, 86% say uncertainty around trade has made them more cautious to expand or invest.

When it comes to international trade growth in the coming years, 83% of Singapore companies feel less confident compared to their global peers.

In terms of trade dynamics, half of Singapore firms plan to increase trade with South Asia, including ASEAN, India, and China. Beyond Asia, 46% aim to trade more with Europe, and 38% with the Middle East.

Last week, Ang Yuit, president of the Association of Small and Medium Enterprises (ASME), warned that some Singapore firms could go into “life support mode” once the 90-day pause on US tariffs ends. /TISG 

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