Local small and medium-sized enterprises (SMEs) in Singapore are actively investing in cutting-edge technologies and expanding into new markets to remain resilient amid global uncertainties.
SMEs are prioritising generative AI, employee upskilling, and regional growth.
Over 70% of SMEs target Southeast Asia for international expansion.
While 36% of SMEs are advancing sustainability, many face regulatory challenges.
The recent DBS Business Pulse Check survey showed that small and medium-sized enterprises (SMEs) are focusing on generative AI (GenAI), employee upskilling, and internationalisation to future-proof their operations.
Adoption of generative AI
One of the key trends highlighted in the survey is the widespread adoption of GenAI. As part of a national campaign to raise awareness of this transformative technology, 73% of surveyed SMEs plan to invest in GenAI-enabled solutions to boost productivity, automate operations, and enhance customer interactions.
Additionally, 72% of respondents stated that they are committed to reskilling their employees to ensure their teams can fully leverage AI technologies. Meanwhile, 32% of businesses have already started experimenting with GenAI tools in marketing and communications.
Focus on regional expansion
Beyond technology adoption, SMEs are optimistic about international growth, with around 70% investing in regionalisation, particularly within Southeast Asia. Over 60% have developed strategies to enter ASEAN and other high-growth markets, identifying market intelligence, trade law guidance, and reliable supplier networks as critical success factors.
Sustainability challenges and opportunities
Despite forward-looking strategies, many SMEs are struggling with sustainability compliance. As climate disclosures become mandatory for listed firms, SMEs face growing pressure to meet regulatory requirements and lower carbon emissions. While 36% are making significant progress, most are still in the early stages. Key challenges include limited resources, complex regulations, and the financial burden of adopting greener practices, underscoring the need for financial and advisory support.
Supporting entrepreneurial growth
Koh Kar Siong, DBS's Group head of corporate and SME banking, emphasised the adaptability and commitment of Singapore's SMEs in driving innovation and pursuing growth opportunities. He stated, “SMEs are taking bold steps to future-proof their businesses, whether by investing in generative AI or expanding into high-growth markets. At DBS, we are committed to supporting this entrepreneurial spirit with the financial advisory, market intelligence and strategic connections needed to foster sustainable growth and long-term success.”
The DBS Pulse Check Survey engaged over 110 SMEs from various industries, provides key insights into the evolving priorities of Singapore’s SME community. With a strong focus on innovation, expansion, and sustainability, these businesses are positioning themselves for long-term success in an increasingly dynamic global market.