Singapore Business Costs Become Top Concern as Profit Outlook Weakens

Rising Singapore business costs have become the leading concern for local companies as global uncertainty, weaker demand and supply-chain disruption weigh on profitability.

A Singapore Chinese Chamber of Commerce and Industry survey of 540 businesses found that 80% were concerned about higher operating expenses, up from 65% a year earlier.

Although 78% expected to remain profitable in 2026, 56% anticipated lower earnings than in the current year.

Companies said they were responding by absorbing some cost increases, passing others to customers and expanding into new markets.

Nearly half were also experimenting with artificial intelligence tools, despite concerns about implementation costs and shortages of relevant expertise.

The government has announced measures intended to reduce regulatory requirements and ease administrative pressure on businesses.

However, the survey indicates that cost management, productivity improvement and market diversification will remain central priorities for Singapore companies.