Businesses Tap Regional Ties to Weather Trade Disruptions

This is according to the findings of HSBC’s 2025 Global Trade Pulse Survey, which offers insight into the business plans and sentiment of over 5,700 international firms across 13 markets including Singapore regarding tariffs and trade.

85% of Singapore-based firms say that trade policy changes are forcing them to rethink their long-term business models, while 86% say that trade uncertainty has made them more cautious about expansion and investment. Singapore firms also expect an average decline of 22% in revenues due to supply chain delays.

While Singapore businesses are less optimistic (83%) compared to their global peers (89%) to grow international trade in the coming years, they are actively managing global uncertainties by tapping Singapore’s strong trade links with key corridors for growth.

Considering current trade dynamics, one in two (55%) Singapore-based businesses plan to increase trade with South Asia that includes ASEAN and India as well as mainland China (50%). Beyond Asia, Singapore businesses also plan to trade more with Europe (46%) and the Middle East (38%).

This shift is similarly reflected in the location of choice for Singapore businesses to move or increase their production. According to the survey, Singapore businesses plan to move or scale their operations in South Asia (56%), mainland China (46%) and Europe (38%).

Gilbert Ng, Head of Banking - Singapore, Corporate and Institutional Banking, HSBC commented, “Despite the challenges posed by the uncertain tariff and trade landscape, Singapore businesses are demonstrating resilience and adaptability in the way they operate. While supply chains may be further reconfigured, there continues to be strong potential for local companies to leverage Singapore’s strong trade ties and tap opportunities that we see emerging from India, the Middle East and Europe.”

Currently, the biggest concern for Singapore businesses (59%) is rising costs due to tariffs and other trade-related factors. In response, 42% of Singapore businesses have adjusted prices to reflect higher costs and 44% plan to similarly do the same. In addition, 42% of Singapore businesses have increased their inventory levels to manage supply disruptions, with 46% planning to do so as well.

While managing cost is top of mind for Singapore businesses during this period of global uncertainties, they are also using the opportunity to innovate and adopt new technology to boost operational efficiencies. 56% of Singapore businesses have developed new products and services while 59% have adopted new technology or digital platform.

Despite trade tensions, 43% of Singapore businesses surveyed have maintained their production capability in mainland China while expanding to other markets, with 40% planning to do the same.

The survey also indicates that during the current period of trade disruption, Singapore businesses find cash and liquidity management as the most helpful form of support in managing working capital (61%), followed by improved payment terms with buyers and suppliers (56%) and supply chain finance (56%).

Aditya Gahlaut, Regional Head of Global Trade Solutions, Asia, HSBC commented, “Against a backdrop of trade uncertainty, many companies have taken a pause on their capital expenditure so that they can assess the new normal. Working capital has become a high-priority C-suite agenda item for many clients because much of it is now trapped in either inventory or receivables.”

HSBC remains committed to supporting businesses in Singapore to mitigate any supply chain disruptions, be it through sharing of local and global expert insights, digital trade and payments innovation, and funding solutions that support their working capital needs.

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Media enquiries:

Betty Fong   |   betty.c.y.fong@hsbc.com.sg   |   +65 6658 4103