More than 2 in 3, or 68%, of Asian businesses surveyed by HSBC, feel more certain about trade than they were six months ago, HSBC says in a statement on Nov 24.
The statement cites findings from HSBC’s Trade Pulse Report, which was published on Nov 18. The first report in the series was released in May, and last week’s report was the second and latest entry. HSBC’s survey ran from Oct 6 to 21 and collected responses from 6,750 corporates across 17 markets, including countries such as mainland China, Hong Kong, India, Indonesia, Singapore, and the US.
According to HSBC, Asian businesses expect supply-chain disruption to have a slightly lower impact on revenue than in May. HSBC’s latest findings say firms in Asia are forecasting a 13% negative impact on revenue, down from 18% when it last conducted its survey six months ago.
Aditya Gahlaut, HSBC’s regional head of global trade solutions, Asia, says the bank’s data suggests that Asia-based companies are adapting to the new environment.
“Though their concerns around revenue have eased slightly, they remain alert to risks. Tariff uncertainty has galvanised Asia, while a growing sense of certainty is enabling companies across the region to make more informed decisions and plan ahead,” Gahlaut says.
Nearly four in five, or 79%, of Singapore businesses are optimistic about trade
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250 of HSBC’s respondents came from businesses based in Singapore. Nearly four in five, or 79%, of Singapore-based respondents say they remain optimistic about growing international trade over the next two years, HSBC says.
53% of firms in Singapore have plans to enter new markets, per HSBC’s findings. The bank says Singapore businesses have been increasing their sales to countries such as Australia, mainland China, India, Japan, and Malaysia.
HSBC says that more than half, or 53%, of Singapore businesses it surveyed are looking to increase their reliance on Southeast Asia. In addition, 47% of them are planning to increase their reliance on East or North Asia, while 45% of them are looking at South Asia, which includes countries such as Bangladesh, India, and Sri Lanka.
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Runa Baksi, HSBC’s head of Southeast Asia, global trade solution, says she expects to see more intra-Asia and intra-ASEAN trade in the coming years. “What has been increasingly certain from this tariff situation, is the growth and potential of Southeast Asia as a trading bloc and Singapore’s role as a trading hub for the region,” she says.
Global trade has been hit with uncertainty ever since President Donald Trump announced his “Liberation Day” tariffs in April. A baseline tariff of 10% was imposed on imports from over 180 countries, and countries such as Japan, South Korea, and Vietnam have been scrambling to sign new trade deals with the US.
The Ministry of Trade and Industry (MTI) announced on Nov 21 that Singapore’s GDP grew by 4.2% y-o-y in the third quarter, beating a 2.9% advance estimate released in October. MTI says it is upgrading its 2025 GDP growth forecast to “around” 4% from 1.5% to 2.5% previously.
