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Business Times
a day ago
- Business
- Business Times
Singapore companies must go global despite ongoing trade turbulence: SBF returning chairman SS Teo
[SINGAPORE] In his second tenure as Singapore Business Federation (SBF) chairman, Teo Siong Seng is prioritising efforts to push businesses to venture into new markets. In the face of global uncertainties and trade tensions, he stressed that companies can no longer rely exclusively on a few established major markets, such as the United States, for growth. 'While the environment is so complicated and fast changing, we have to be confident that Singapore companies do have a good reputation in terms of their quality of services and goods,' he said. He urged businesses to 'break out of their comfort zone' and actively pursue new opportunities in emerging markets, particularly in South-east Asia, Africa and the Middle East. This was one of the key priorities Teo shared in his first media interview since he was reappointed as chairman on May 20. He succeeded Lim Ming Yan, who stepped down early from his third consecutive two-year term to focus on his new role as chairman of Changi Airport Group. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The appointment marks Teo's second stint as SBF chairman, having previously held the position from 2014 to 2020. The 70-year-old shipping veteran, known among industry peers as SS Teo, is the first person in SBF's history to return to the role. Predecessor to successor Though Teo stepped down from his post five years ago, he told The Business Times that he has remained active in the organisation. Past council members are often consulted and engaged on matters, even after they step down from their posts, he noted. In 2024, Teo was appointed chair of SBF's Internationalisation Action Committee, which supports local companies to scale up their business overseas. He was chosen due to his experience as executive chairman of Pacific International Lines, a home-grown shipping company with operations in South-east Asia, the Middle East, Africa, and Latin America. Teo's experience in internationalisation is also a key reason SBF saw him as a strong fit to return as chairman, as it aligns with the chamber's 2030 plan to promote overseas expansion. Asked if he will serve as an interim chairman until another successor is found, Teo replied: 'We will always be looking out for a successor, and you will know in due course.' He noted, however, that while previous SBF chairmen typically completed three two-year terms, the rapidly changing external environment means this may no longer be the case. Going global Though only five years have passed since he was last chairman, Teo noted that outside factors have transformed significantly. 'I would say that in my first six years of SBF chairmanship, the majority of the time, (Singapore's) economy was growing and there was free trade,' he said. At the time, the chamber's main priorities were growing its membership and leading business delegations. However, since the Covid-19 pandemic, global crises have become shorter yet more frequent. Teo, who stepped down during the pandemic, is back at the helm amid a wave of trade tensions, triggered by US President Donald Trump's 'Liberation Day' tariffs. In light of these challenges, businesses in the Republic must seek out like-minded partners and pursue overseas opportunities. 'If they do nothing, they will be marginalised,' he warned. To support this push, SBF will intensify its efforts to organise more trade missions, helping local companies explore promising international markets. These missions typically bring together Singapore firms that have successfully expanded abroad to share their experience, as well as provide networking opportunities with local businesses in the target markets. This year, SBF plans to lead trade missions to Dubai, Saudi Arabia, Africa, and Latin America. According to Teo, interest in these missions has grown in recent years, thanks to the advocacy efforts of business chambers such as SBF in making companies more open to overseas expansion. SBF also plans to launch two new Singapore Enterprise Centres (SECs) this year – one in Bengaluru, India, set to open in the third quarter; and another in Dubai, scheduled for the fourth quarter. These international centres support businesses to expand overseas through providing advice on the market, business matching, and networking opportunities, under the chamber's GlobalConnect programme. The SECs in Vietnam, Indonesia and Thailand have successfully helped companies in the city-state to expand to these markets, said Teo. When it comes to sectors that can seize opportunities in these emerging markets, Teo highlighted education, lifestyle, food manufacturing, and accommodation. The new Johor-Singapore Special Economic Zone is another opportunity for firms. For instance, food-manufacturing companies can consider opening facilities in Johor to scale up production, he said. Trump's tariffs Another priority for Teo is to help Singapore firms navigate the uncertainties caused by the US tariffs. According to a survey by SBF in May, over a third of local businesses are already feeling the impact of the global tariff war, with nearly 90 per cent expecting to experience its effects within the next six months. Many companies have also communicated to the chamber their need for larger and longer-term financing to weather these trade challenges, as they are uncertain if they can sell their inventory during this period of uncertainty. Teo, who is now a member of the Singapore Economic Resilience Taskforce chaired by Deputy Prime Minister Gan Kim Yong, plans to raise these concerns with the taskforce. In addition, SBF intends to enhance educational efforts to improve businesses' understanding of how tariffs are applied and the role of free trade agreements – areas Teo noted many companies remain unfamiliar with. In May, the chamber's Centre for the Future of Trade and Investment launched a digital playbook aimed at helping businesses understand, respond to, and plan for the impact of the US tariffs. In addition, SBF offers tailored advice to companies facing specific challenges and is working on launching a mentorship programme. This initiative will connect experienced business leaders with younger companies, including startups, to provide hands-on guidance. In particular, it has been actively supporting the trading sector, which has been particularly affected by the ongoing tariff situation. Beyond these immediate-term priorities, Teo will continue with efforts to help businesses transform, in areas of sustainability and digitalisation. For instance, the chamber has a committee which advises small and medium-sized enterprises on how to adopt sustainability measures more meaningfully. As for digitalisation, SBF is looking at how to help companies adopt artificial intelligence without breaking the bank.
New Paper
6 days ago
- Business
- New Paper
Dealing with economic situation and its impact on Singaporeans a key priority for Govt: PM Wong
Dealing with the economic situation and its impact on Singaporeans is a key priority for the Government, said Prime Minister Lawrence Wong. He also said he is focused on forming a new and strengthened team in Government to secure Singapore's future. In a video uploaded on social media on May 9, PM Wong said: "The election results have made it clear that Singaporeans want a team that combines experience with fresh perspectives to take our country forward." His update comes six days after an election in which the ruling PAP secured 65.57 per cent of the popular vote, and won 87 out of 97 seats in Parliament. The election win comes amid turmoil in global trade and other crisis hot spots around in the world. In April, US President Donald Trump announced wide-ranging tariffs that hit many nations in the world, including 10 per cent on Singapore. A recent Singapore Business Federation survey found that four in five Singapore businesses are negatively affected by tariffs imposed by the United States, PM Wong said. Three in four firms project a drop in revenues, and half of them said they are holding back on new hires for the next three months. "So clearly, businesses are very concerned," he said. Workers and union leaders are anxious too, and graduating students are worried about the potential difficulties in securing jobs, he said. That is why the Singapore Economic Resilience Taskforce, chaired by Deputy Prime Minister Gan Kim Yong, has been actively meeting to develop and flesh out response plans. They will provide further updates when ready, he said. "DPM Gan is also continuing his discussions with US counterparts, exploring constructive ways to further our trade relations with America," he added. Meanwhile, the Government will roll out the measures announced in this year's Budget to help cushion the immediate impact on jobs and prices, said PM Wong. These include more support for households, like additional CDC vouchers to be issued next week, and SG60 vouchers that will come in July, as well as enhanced support for businesses and workers. Said PM Wong: "The elections are over, and my team and I are busy back at work this week… "We have a full agenda ahead of us. We will continue to do our best for all of you, for Singapore, and for all Singaporeans."
Straits Times
7 days ago
- Business
- Straits Times
More S'pore businesses expect economy to worsen, doubling from previous quarter: SBF survey
Businesses here are also anticipating rising cost pressures over the next six months, the survey found. PHOTO: ST FILE More S'pore businesses expect economy to worsen, doubling from previous quarter: SBF survey SINGAPORE - The business outlook here has weakened considerably amid growing economic uncertainty, according to a Singapore Business Federation (SBF) survey released on May 28. The proportion of businesses that foresee the economy worsening over the next 12 months nearly doubled on the quarter, from 22 per cent in the fourth quarter of 2024 to 40 per cent in the first quarter of 2025, the survey found. 'This bearish sentiment is shared by both small and medium-sized enterprises, with the proportion expecting worsening conditions increasing from 23 per cent to 41 per cent, and large companies, where the figure rose from 18 per cent to 38 per cent over the same period,' the survey indicated. It collated responses from 526 businesses across major sectors. Businesses in the hotels, restaurants and accommodations, health and social services as well as retail trade sectors showed high pessimism about economic prospects for the next 12 months, SBF said. Notably, the hotels, restaurants and accommodation sector had the most cautious outlook. It recorded the lowest score among all sectors for Business Sentiment Index (BSI) – a new indicator that consolidates key measures that capture business confidence. The sector's BSI of 52.2 was below the overall BSI of 56.5. It also reported the lowest levels for revenue expectations, profitability expectations, positive business expansion outlook and level of planned capital investment, and had the least optimistic business growth confidence level. Moreover, businesses are anticipating rising cost pressures over the next six months, NBS found. The real estate and hotels, restaurants and accommodations sectors faced the highest cost expectations, with BSI scores at 78.4 and 71.9, respectively. Some bright spots While overall sentiment is cautious, some sectors showed optimism. The banking and insurance as well as education sectors were the most optimistic, with BSI scores of 61.2 and 60.5, respectively. These two sectors logged the highest revenue expectations. Sectors with the highest profitability expectations included the education sector with a 60.8 score, the real estate sector with 60.4, and the banking and insurance sector with 59.1. Business expansion outlook remained moderate at 61.6, indicating some optimism for growth – particularly for the sectors of education with a BSI of 66.6, and banking and insurance with a BSI of 65.6. Hiring outlook had a 57.7 score, suggesting that businesses intend to maintain their current workforce size. The hotels, restaurants and accommodations, IT and related services and education sectors had the most optimistic hiring outlooks with BSI scores of 67.4, 61.8 and 60.1, respectively. Businesses also identified the five most useful measures that emerged from Budget 2025. These were the 50 per cent Corporate Income Tax Rebate; the enhancement of the Progressive Wage Credit Scheme; the Central Provident Fund transition offset; the extension of Senior Employment Credit; and the new SkillsFuture Workforce Development Grant. Strong transformation momentum, liquidity concerns Transformation momentum remains strong as businesses are continuing to pursue long-term competitiveness through enterprise and workforce transformation, the survey found. SBF chief executive Kok Ping Soon said: 'It is important that businesses stay the course in enterprise and workforce transformation by leveraging on the slew of government support.' Despite this, challenges of high costs of adopting new technologies and manpower crunches when staff attend training persist. Internationalisation and artificial intelligence development schemes emerged as top priorities for enterprise transformation, NBS said. The redesigned SkillsFuture Enterprise Credit and SkillsFuture Workforce Development Grant were the most preferred initiatives for workforce transformation. Liquidity was a key concern for businesses as around a quarter face a moderate to severe credit crunch – with 35 per cent of these reporting insufficient cash to operate for three to six months, NBS found. Businesses also wanted greater government support on financing related programmes, more flexible repayment terms and access to alternative financing solutions. Noting that accessibility and cost of financing were areas of concern, Mr Kok said SBF hopes to work with the government and financial institutions to better support businesses. This comes as some businesses may now require larger financing lines and longer financing terms amid the impact of US tariff measures, he added. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
7 days ago
- Business
- Business Times
Two in five businesses expect economy to worsen in the year ahead: SBF survey
[SINGAPORE] Business outlook has weakened considerably amid growing uncertainty, based on a Singapore Business Federation (SBF) survey released on Wednesday (May 28). The proportion of businesses that foresee the economy worsening over the next 12 months nearly doubled on the quarter, from 22 per cent in Q4 2024 to 40 per cent in Q1 2025, the National Business Survey (NBS) 2025 - Singapore Budget Edition found. 'This bearish sentiment is shared by both small and medium-sized enterprises, with the proportion expecting worsening conditions increasing from 23 per cent to 41 per cent, and large companies, where the figure rose from 18 per cent to 38 per cent over the same period,' the survey indicated. It collated responses from 526 businesses across major sectors. Businesses in the hotels, restaurants and accommodations, health and social services as well as retail trade sectors showed high pessimism about economic prospects for the next 12 months, SBF said. Notably, the hotels, restaurants and accommodation sector had the most cautious outlook. It recorded the lowest score among all sectors for Business Sentiment Index (BSI) – a new indicator that consolidates key measures that capture business confidence. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The sector's BSI of 52.2 was below the overall BSI of 56.5. It also reported the lowest levels for revenue expectations, profitability expectations, positive business expansion outlook and level of planned capital investment, and had the least optimistic business growth confidence level. Moreover, businesses are anticipating rising cost pressures over the next six months, NBS found. The real estate and hotels, restaurants and accommodations sectors faced the highest cost expectations with BSI scores at 78.4 and 71.9, respectively. Bright spots despite cautious overall sentiment While overall sentiment is cautious, some sectors showed optimism. The banking and insurance as well as education sectors were the most optimistic, with BSI scores of 61.2 and 60.5, respectively. These two sectors logged the highest revenue expectations. Sectors with the highest profitability expectations included the education sector with a 60.8 score, the real estate sector with 60.4, and the banking and insurance sector with 59.1. Business expansion outlook remained moderate at 61.6, indicating some optimism for growth – particularly for the sectors of education with a BSI of 66.6, and banking and insurance with a BSI of 65.6. Hiring outlook had a 57.7 score, suggesting that businesses intend to maintain their current workforce size. The hotels, restaurants and accommodations, IT and related services and education sectors had the most optimistic hiring outlooks with BSI scores of 67.4, 61.8 and 60.1, respectively. Most useful Singapore Budget 2025 measures, according to businesses Businesses also identified the five most useful measures that emerged from Budget 2025. These were the 50 per cent Corporate Income Tax Rebate; the enhancement of the Progressive Wage Credit Scheme; the Central Provident Fund transition offset; the extension of Senior Employment Credit; and the new SkillsFuture Workforce Development Grant. Strong transformation momentum, liquidity concerns Transformation momentum remains strong as businesses are continuing to pursue long-term competitiveness through enterprise and workforce transformation, the survey found. Kok Ping Soon, chief executive of SBF, said: 'It is important that businesses stay the course in enterprise and workforce transformation by leveraging on the slew of government support.' Despite this, challenges of high costs of adopting new technologies and manpower crunches when staff attend training persist. Internationalisation and artificial intelligence development schemes emerged as top priorities for enterprise transformation, NBS said. The redesigned SkillsFuture Enterprise Credit and SkillsFuture Workforce Development Grant were the most preferred initiatives for workforce transformation. Liquidity was a key concern for businesses as around one-quarter face a moderate to severe credit crunch – with 35 per cent of these reporting insufficient cash to operate for three to six months, NBS found. Businesses also wanted greater government support on financing related programmes, more flexible repayment terms and access to alternative financing solutions. Noting that accessibility and cost of financing were areas of concern, Kok said SBF hopes to work with the government and financial institutions to better support businesses. This comes as some businesses may now require larger financing lines and longer financing terms amid the impact of US tariff measures, he added. .
Independent Singapore
22-05-2025
- Business
- Independent Singapore
Over 80% of Singapore companies expect US tariffs to hurt business
SINGAPORE: More than 80 per cent of Singapore companies expect US tariffs to hurt their business over the next six months, a new survey has found. In response, the Singapore Business Federation (SBF) has introduced a new guide aimed at helping companies – especially small and medium-sized enterprises (SMEs) – navigate the growing uncertainty. The survey, carried out between April 11 and 23, gathered responses from nearly 300 businesses across a range of industries. The findings suggest that many local firms are bracing for a tough road ahead. About half of the respondents reported direct or indirect exposure to the US market, while nearly 20 per cent said that more than half of their annual revenue comes from American customers. Short-term expectations are grim. Three in four businesses anticipate a drop in revenue, and half believe their operating costs will climb. For some, the impact has already begun: 40 per cent say they're already feeling the squeeze from tariffs. SMEs – often less resilient than larger firms – are likely to be the hardest hit. But it's not just about costs. Businesses also expressed concerns about currency volatility, supply chain disruptions, and the risk of retaliatory trade measures. Seven in ten are planning to raise prices, although many say they'll try to absorb some of the added costs in order to stay competitive. To cope with the financial strain, around 60 per cent of businesses say they'll need more working capital. Many are also calling on the government for support in the form of tax relief, funding schemes, and clearer guidance on how to make better use of existing free trade agreements. To help companies respond to these challenges, the SBF has teamed up with the Federation of Chinese Chambers of Commerce and Industry's Future Trade and Investment Centre to launch a new guide titled *Navigating US Tariffs*. The guide breaks down practical steps businesses can take depending on how long the disruption lasts. In the first three months, companies are urged to assess risks and review their financial health. Between four and twelve months, the focus shifts to supply chain redesign and financial planning. Beyond that, the guide recommends longer-term strategies such as digitalisation, innovation, and business transformation to build resilience.
