SE Asian firms’ business outlook falls to 48% after US tariffs: UOB

Business sentiment across ASEAN and Greater China has dropped sharply following the announcement of new US tariffs, according to UOB’s Business Outlook Study 2025. The percentage of firms with a positive business outlook fell to 48%, down from 77% prior to the tariff announcement in April. In Singapore, sentiment declined from 82% to 53%. The dip reflects growing concerns over inflation, higher business costs, and supply-chain disruptions, particularly in Indonesia and Hong Kong. Rising supply costs were attributed to both inflation and interest rates, while procurement issues also weighed heavily. In response, businesses are localising operations and strengthening supplier relationships. Singapore firms are improving inventory management and digitalising supply-chain systems to mitigate further disruptions.