Leaders of Singapore’s small and medium-sized enterprise (SME) are the least optimistic about international expansion among all markets surveyed globally, scoring 7.2 out of 10 compared to a global average of 8.2, according to the third edition of Kreston Global’s Interpreneur Report.

The report is based on a survey of 1,100 international entrepreneurs with revenue between £10 million and £300 million across 11 countries. Despite their cautious stance, 66 percent of Singapore respondents expect the environment for international business expansion to become more favorable in the next two to three years, compared to 86 percent of their global peers. Some 40 percent expect it to be very or somewhat difficult to expand overseas at present.

Singapore respondents identified geopolitical instability as the most significant threat to their overseas operations at 52 percent, the highest among all countries surveyed and above the global average of 45 percent. Supply chain disruption was cited by 43 percent, also the highest globally against a global average of 31 percent, while tariff-related cost increases were flagged by 42 percent, slightly above the global average of 40 percent.

On the opportunities side, respondents prioritized access to new customer markets at 52 percent, formation of strategic partnerships or joint ventures at 51 percent, and lower production or operating costs at 43 percent.

Singapore businesses also take a more measured view of AI’s impact on expansion strategy. While 97 percent say AI has some impact, only 52 percent describe it as significant or very significant, well below the global average of 74 percent. Singapore respondents are nearly twice as likely as global peers to describe AI’s impact as moderate or minor, at 45 percent versus 24 percent globally.

Helmi Talib, Managing Partner of Kreston Helmi Talib Singapore, said that while ambition remains strong in Singapore, the city’s heavy reliance on trade means global headwinds have a direct and profound impact on business confidence, resulting in a more cautious and selective approach to international expansion.

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