European Investor
10 Feb 2026, 10:18
DBS said a strong majority of Singapore SMEs are planning overseas expansion and increasing technology adoption to drive growth in 2026, despite trade and cost pressures, according to its latest Business Pulse Check Survey.
The survey of 730 companies found that 82% of SMEs intend to internationalise next year, led by firms in information and communications and manufacturing, as they seek new customer bases and stronger overseas brand presence. Around 67% of respondents are already using artificial intelligence to improve productivity, although only 12% have fully integrated AI across their operations, highlighting uneven adoption across sectors.
Sustainability readiness has improved markedly, with 49% of SMEs now considering themselves prepared, up from about one-third a year earlier, while the share feeling unprepared has fallen sharply. Despite headwinds from tariffs and trade restrictions, 57% of businesses expect performance to improve in 2026, supported by investments in productivity, technology and regional expansion.
The survey of 730 companies found that 82% of SMEs intend to internationalise next year, led by firms in information and communications and manufacturing, as they seek new customer bases and stronger overseas brand presence. Around 67% of respondents are already using artificial intelligence to improve productivity, although only 12% have fully integrated AI across their operations, highlighting uneven adoption across sectors.
Sustainability readiness has improved markedly, with 49% of SMEs now considering themselves prepared, up from about one-third a year earlier, while the share feeling unprepared has fallen sharply. Despite headwinds from tariffs and trade restrictions, 57% of businesses expect performance to improve in 2026, supported by investments in productivity, technology and regional expansion.
