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Business Times
a day ago
- Business
- Business Times
Less than half of small and mid-sized regional firms upbeat about business outlook post-US tariffs: UOB study
[SINGAPORE] Business sentiment in the region has declined sharply following the announcement of US tariffs, with only 48 per cent of firms positive about the business outlook, down from 77 per cent before. The study, titled UOB Business Outlook Study 2025 (SMEs and Large Enterprises), was conducted in January; about 4,200 businesses in Asean and Greater China were polled, including 900 from Singapore. Following the announcement of US President Donald Trump's 'Liberation Day' tariffs on Apr 2, a dipstick study of 800 businesses was next conducted from Apr 9 to 12. The survey found under half (48 per cent) of companies in the region 'positive' or 'very positive' about the business environment, down from just over three-quarters (77 per cent) in 2024 and 2023. In Singapore alone, 53 per cent of businesses are 'positive' or 'very positive' about the business environment, down from 82 per cent before the tariff announcements. The study noted heightened concerns around increased business costs and inflation. The study also found that companies are facing significant supply-chain disruptions – especially those in Indonesia and Hong Kong. In supply-chain management, 41 per cent of businesses cited rising supply costs due to high inflation as the top challenge; 36 per cent attributed rising supply costs to high interest rates, and 31 per cent flagged difficulties in procuring supplies and raw materials. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Adjusting business strategies Nevertheless, the study revealed that businesses in the region are adjusting their strategies accordingly, to cope with tariff developments. In response to supply-chain challenges, UOB noted that many companies are adopting a localisation strategy, and aiming to improve the stability and resilience of their supply networks by sourcing and operating closer to home. Singapore companies are adopting better inventory-management practices, investing in stronger supplier relationships and digitalising supply-chain management. Based on the study, about 67 per cent of respondents in Asean expect intra-Asean trade to grow, following the announcement of the tariffs; 47 per cent expect to quicken the pace of overseas expansion. Other strategies to respond to the US tariffs included stepping up the pace of digital adoption to improve productivity and customer experience. This was named by 60 per cent of the respondents. About 56 per cent plan to adopt sustainable practices more quickly, in order to improve the company's reputation and become more attractive to investors. UOB's head of group commercial banking Eric Lian said: 'Businesses are actively planning their next steps following the US tariff announcements. Nearshoring looks set to be a longer-term trend as companies rebalance their supply chains within Asean.' Tackling workforce challenges Businesses expect manpower challenges to escalate following the announcements of US tariffs, said UOB. The study revealed that close to six in 10 respondents are affected by workforce or manpower-related issues. Among the top three workforce challenges flagged were higher expectations from employees on pay and remote working (45 per cent), talent retention (42 per cent) and talent attraction (40 per cent). To address these issues, 47 per cent of businesses are offering higher pay and benefits, and 44 per cent are providing reskilling and upskilling to staff. About 39 per cent are embarking on digital transformation; 37 per cent are offering flexi-work arrangements; and 36 per cent are offering job-rotation opportunities across departments or markets.
Business Times
2 days ago
- Business
- Business Times
Half of small and mid-sized regional firms upbeat about business outlook post-US tariffs: UOB study
[SINGAPORE] Business sentiment in the region has declined sharply following the announcement of US tariffs, with only 48 per cent of firms positive about the business outlook, down from 77 per cent before. The study, titled UOB Business Outlook Study 2025 (SMEs and Large Enterprises), was conducted in January; about 4,200 businesses in Asean and Greater China were polled, including 900 from Singapore. Following the announcement of US President Donald Trump's 'Liberation Day' tariffs on Apr 2, a dipstick study of 800 businesses was next conducted from Apr 9 to 12. The survey found under half (48 per cent) of companies in the region 'positive' or 'very positive' about the business environment, down from just over three-quarters (77 per cent) in 2024 and 2023. In Singapore alone, 53 per cent of businesses are 'positive' or 'very positive' about the business environment, down from 82 per cent before the tariff announcements. The study noted heightened concerns around increased business costs and inflation. The study also found that companies are facing significant supply-chain disruptions – especially those in Indonesia and Hong Kong. In supply-chain management, 41 per cent of businesses cited rising supply costs due to high inflation as the top challenge; 36 per cent attributed rising supply costs to high interest rates, and 31 per cent flagged difficulties in procuring supplies and raw materials. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Adjusting business strategies Nevertheless, the study revealed that businesses in the region are adjusting their strategies accordingly, to cope with tariff developments. In response to supply-chain challenges, UOB noted that many companies are adopting a localisation strategy, and aiming to improve the stability and resilience of their supply networks by sourcing and operating closer to home. Singapore companies are adopting better inventory-management practices, investing in stronger supplier relationships and digitalising supply-chain management. Based on the study, about 67 per cent of respondents in Asean expect intra-Asean trade to grow, following the announcement of the tariffs; 47 per cent expect to quicken the pace of overseas expansion. Other strategies to respond to the US tariffs included stepping up the pace of digital adoption to improve productivity and customer experience. This was named by 60 per cent of the respondents. About 56 per cent plan to adopt sustainable practices more quickly, in order to improve the company's reputation and become more attractive to investors. UOB's head of group commercial banking Eric Lian said: 'Businesses are actively planning their next steps following the US tariff announcements. Nearshoring looks set to be a longer-term trend as companies rebalance their supply chains within Asean.' Tackling workforce challenges Businesses expect manpower challenges to escalate following the announcements of US tariffs, said UOB. The study revealed that close to six in 10 respondents are affected by workforce or manpower-related issues. Among the top three workforce challenges flagged were higher expectations from employees on pay and remote working (45 per cent), talent retention (42 per cent) and talent attraction (40 per cent). To address these issues, 47 per cent of businesses are offering higher pay and benefits, and 44 per cent are providing reskilling and upskilling to staff. About 39 per cent are embarking on digital transformation; 37 per cent are offering flexi-work arrangements; and 36 per cent are offering job-rotation opportunities across departments or markets.
Business Times
2 days ago
- Business
- Business Times
About 1 in 2 SMEs in region positive about business outlook post-US tariffs, down from 77%: UOB study
[SINGAPORE] Business sentiment in the region has declined sharply following the announcement of US tariffs, with only 48 per cent of firms positive about business outlook, down from 77 per cent before, based on the UOB Business Outlook Study 2025 (SMEs and Large Enterprises). The study was conducted in January and polled about 4,200 businesses in Asean and Greater China, including 900 from Singapore. Following the announcement of US President Donald Trump's 'Liberation Day' tariffs on Apr 2, a dipstick study of 800 businesses was conducted from Apr 9 to 12. Based on survey findings, only 48 per cent of companies in the region are 'positive' or 'very positive' about the business environment. This was down from 77 per cent in 2024 and 2023. Zooming into Singapore, only 53 per cent of businesses in the Republic are 'positive' or 'very positive' about the business environment. This was down from 82 per cent before the tariff announcements, with UOB noting heightened concerns around increased business costs and inflation. The study also found that companies are facing significant supply chain disruptions – especially firms from Indonesia and Hong Kong. In supply chain management, 41 per cent of businesses cited rising supply costs due to high inflation as the top challenge, while 36 per cent cited rising supply costs due to high interest rates. Finally, 31 per cent flagged difficulties in procuring supplies and raw materials. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Adjusting business strategies Nevertheless, the study revealed that businesses in the region are adjusting their strategies accordingly to cope with tariff developments. In response to supply chain challenges, UOB noted that many companies are adopting a localisation strategy and aim to increase the stability and resilience of their supply networks by sourcing and operating closer to home. Meanwhile, Singapore companies are adopting better inventory management practices, investing in stronger supplier relationships and digitalising supply chain management. Based on the study, about 67 per cent of respondents in Asean expect intra-Asean trade to increase following the US tariffs. In addition, 47 per cent expect to quicken the pace of overseas expansion. Other strategies to respond to the US tariffs were also highlighted. About 60 per cent plan to increase the pace of digital adoption to improve productivity and customer experience. About 56 per cent plan to adopt sustainable practices more quickly, in order to improve company reputation and become more attractive to investors. UOB head of group commercial banking Eric Lian said: 'Businesses are actively planning their next steps following the US tariff announcements. Nearshoring looks set to be a longer-term trend as companies rebalance their supply chains within Asean.' Tackling workforce challenges Businesses expect manpower challenges to escalate following the announcements of US tariffs, said UOB. The study revealed that close to six in 10 respondents are affected by workforce or manpower-related issues. Among the top three workforce challenges flagged were higher expectations from employees on pay and remote working (45 per cent), talent retention (42 per cent) and talent attraction (40 per cent) To address these issues, 47 per cent of businesses are offering higher pay and benefits, while 44 per cent are providing reskilling and upskilling to staff. About 39 per cent are embarking on digital transformation; 37 per cent are offering flexi-work arrangements; and 36 per cent are offering job rotation opportunities across departments or markets.
Business Times
2 days ago
- Business
- Business Times
Richport Technology continues to polish its surface treatment offerings
[SINGAPORE] In 1995, Teo Sang Kiam set up Richport Technology to provide supporting services for the construction industry, in which her husband had an existing business. What began as a small electroplating service provider has since become something much greater. In 1998, during the Asian financial crisis, the construction industry was badly hit as projects were put on hold. This was the catalyst for Richport to shift into precision engineering. This decision to pivot redefined the company's future and set it on a path of innovation. Richport is now a leading surface treatment provider, specialising in high-value components for high-tech industries such as semiconductors, life sciences and medical devices. Over the years, Richport secured approvals for various cutting-edge electroplating techniques. With these added capabilities, it has been able to position itself as a one-stop provider for surface treatment. Apart from obtaining ISO certifications, it also secured key approvals from major semiconductor manufacturers. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Richport's growth has been driven by its client-centric approach. By investing in research and co-developing solutions with clients, Richport could address their unique and often complex needs, solidifying its role as a trusted partner. Client needs also lay behind Richport's decision to make its first overseas foray into Penang, Malaysia, in 2018. The company saw a gap in the semiconductor supply chain between Penang and Singapore. Customers were incurring extra costs sending equipment to Singapore for electroplating, and then back to Penang. Richport successfully replicated its production systems in Penang, trained new staff and secured approvals from key original equipment manufacturers (OEM) – cementing a place in the region's high-tech manufacturing supply chain. It intends to expand and strengthen its regional role: supporting emerging supply chains in India, Thailand and Vietnam, as well as serving established supply chains in Japan, Taiwan and South Korea. With the services it offers, it aims to be a vital enabler for regional fabricators. Talent and innovation Richport's business is founded on three pillars: technical mastery, quality assurance and a highly skilled workforce. The company's technical capabilities blend traditional engineering and cutting-edge advancements, with a commitment to research and development. For quality assurance, it uses smart sensors and statistical process controls to maintain the highest industry standards, even as production scales up. Its innovation is also fuelled by partnerships, both with clients and other organisations. Richport works closely with its clients' design engineers and R&D teams, to ensure that its offerings meet evolving industry standards and specific client needs. Such collaboration also allows the company to address critical supply chain gaps. By embedding itself in its clients' supply chains, Richport adds value and fosters long-term relationships. To stay at the leading edge, Richport partners educational and research institutions, such as the Singapore Institute of Manufacturing Technology and overseas universities. It also collaborated with Temasek Polytechnic to use robotic arms to automate polishing processes. Advanced programming was required to ensure the arms could achieve the required level of polishing, a skill that usually requires human expertise. But of course, humans remain key to the business. As Richport director Chew Kian Zi put it: 'Good processes and quality are ultimately created and run by people.' The company invests not just in technology but also its workforce, recognising the importance of skilled personnel. It provides process-specific and cross-functional training, to ensure operational flexibility and innovation at every level. Strategic shifts to stay competitive Richport's adaptability has helped it tackle challenges and stay competitive. During the Covid-19 pandemic, Richport had to remotely manage its plant in Malaysia, which at that time had only been operational for two years. Despite the difficulties, the Malaysia team – comprising both new and experienced employees – managed to adapt quickly. In fact, the team grew from 30 to nearly 100 employees during the pandemic. At the strategic level, Richport recognised the need to shift towards higher-value, more specialised products, to stay competitive against high-volume production hubs such as China and India. To support this strategy of moving up the value chain, Richport embarked on a two-pronged expansion in Singapore and Penang. A new 120,000-square-foot facility allows it to scale up its operations while also enhancing its capabilities, particularly in advanced precision cleaning for semiconductor equipment manufacturers. The new facility, which aligns with its OEM growth plans in Singapore and Malaysia, uses the latest Industry 4.0 technologies such as robotics, real-time data analytics and process automation. Another way that Richport is future-oriented is in its commitment to sustainable practices and reducing its environmental footprint. In water recycling projects with the national water agency PUB, Richport partners vendors to better control the release of chemicals into sewage systems. The company is also moving towards the use of solar power. With strategic investments in advanced capabilities and a customer-centric approach, Richport aims to keep distinguishing itself as a reliable and innovative partner in the surface treatment industry. This series is part of the Enterprise 50 Educational Project between the E50 partners and the NUS Business School. Richport Technology was among the winners in 2023. The annual E50 ranking is co-organised by The Business Times and KPMG, sponsored by OCBC Bank, and supported by Enterprise Singapore, Singapore Exchange and Singapore Business Federation.
Business Times
28-05-2025
- Business
- Business Times
Singapore firms less optimistic of growth in international trade, but plan to deepen links with Asean, India: HSBC study
[SINGAPORE] Nearly nine out of 10 Singapore-based businesses say they are rethinking their long-term business models and planned investments in light of the recent tariff turmoil, according to HSBC's 2025 Global Trade Pulse Survey. The survey polled 5,750 businesses from 13 markets – including 250 firms from Singapore – with international operations and a turnover of between US$50 million and US$2 billion. Research was conducted between Apr 30 and May 12. The survey also found that Singapore firms expect revenue to decline by 22 per cent on average due to supply-chain delays. Firms in the city-state are slightly less optimistic (83 per cent) on international trade growth in the coming years, compared with their global peers (89 per cent). But the survey noted that Singapore firms 'are actively managing global uncertainties by tapping the Republic's strong trade links with key corridors for growth'. Given the current trade dynamics, one in two Singapore-based firms plans to increase trade with Asean and India (55 per cent), as well as mainland China (50 per cent). Beyond Asia, Singapore firms also plan to trade more with Europe (46 per cent) and the Middle East (38 per cent). A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up On a similar note, firms in the Republic plan to move or scale their operations in South Asia (56 per cent), mainland China (46 per cent) and Europe (38 per cent). Gilbert Ng, HSBC's head of banking for Singapore, corporate and institutional banking, noted that Singapore businesses continue to be resilient and adaptable despite the tariff and trade uncertainty. '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.' Among Singapore firms, 59 per cent cited rising costs from tariffs and other trade-related factors as the biggest concern. As a result, 42 per cent of Singapore firms have adjusted their prices to account for the higher costs, with 44 per cent planning to do the same. In addition, 42 per cent of Singapore firms have increased their inventory levels to manage supply disruptions, with 46 per cent planning to do as well. At the same time, the survey found that Singapore firms are taking the opportunity to boost operational efficiencies. One in two Singapore firms (56 per cent) has developed new products and services, while 59 per cent have adopted new technology or digital platforms. Despite trade tensions, 43 per cent of Singapore firms surveyed have maintained their production capability in mainland China while expanding to other markets, with 40 per cent planning to do the same. Singapore firms also indicated cash and liquidity management as the most helpful form of support in managing working capital (61 per cent) amid trade disruption. This was followed by improved payment terms with buyers and suppliers (56 per cent), and supply chain finance (56 per cent). Aditya Gahlaut, HSBC's regional head of global trade solutions in Asia, noted that against a backdrop of trade uncertainty, many companies have held back on their capital expenditure to '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,' he said.
