Half of businesses passing off tariff hikes to manage costs

8 in 10 are cautious about expanding and investing.

Nearly six in 10 Singapore businesses’ biggest concern is the rising cost due to tariffs and other trade-related factors, resulting in 42% adjusting prices to reflect higher costs, according to a report by HSBC.

44% of companies are also planning to increase their prices, whilst 42% have increased their inventory levels to manage supply disruptions.

Both surging costs and supply disruptions are also causing eight in 10 businesses to rethink their long-term business models, whilst 86% say the trade uncertainty has made them more cautious about expansion and investment.

Meanwhile, 83% of Singapore businesses are less optimistic about compared to their global peers to grow international trade in the coming years.

Considering trade dynamics, one in two Singapore-based businesses plan to increase trade with South Asia, which includes ASEAN, India, and China. Beyond Asia, 46% plan to trade more with Europe, whilst 38% plan to trade more with the Middle East.