According to the latest DBS Business Pulse Check Survey, 82% of 730 companies polled between December 2025 and January 2026 have plans to internationalise this year.
The annual survey is conducted across diverse industries to better understand the needs, concerns and aspirations of Singapore’s small- and medium-sized enterprises (SME) community.
Of the local SMEs surveyed, companies in the information and communications as well as manufacturing sectors led the way in wanting to take business beyond domestic shores.
Around half of 49% of the 730 companies indicated wanting to reach new customer bases while 43% cite building a stronger overseas brand presence as the primary drivers, reflecting a shift towards diversifying revenue streams and markets.
SMEs looking to enter new markets also highlighted the importance of connections with trusted local partners, access to market insights and guidance on local regulatory requirements to support successful market entry and scaling.
In addition to regional expansion, the survey also found that technology —particularly artificial intelligence (AI) — is playing an increasingly prominent role in how companies are strengthening their competitive edge.
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About 67% of respondents have already begun applying some form of AI in their work processes.
Despite the clear intention, adoption remains uneven across industries, with only 12% having fully integrated AI across their operations, indicating significant headroom for broader and deeper deployment.
Companies in the information and communications, electronics manufacturing and professional services sectors were the most advanced in their AI usage, while those in the wholesale and trade sectors were the least likely to have adopted AI solutions.
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To further scale AI adoption, surveyees cited the need for financial support or grants, expert guidance on how to apply AI more effectively and partnerships with technology providers as the most helpful forms of support in translating usage into tangible gains in productivity.
Meanwhile, the proportion of businesses that considered themselves sustainability-ready rose to 49%, up from about a third a year ago. In relation to this, the share of firms that felt unprepared in their sustainability journeys had declined to 27% from 60% last year.
To sustain the momentum, SMEs highlighted the need for more affordable green technologies, clear step-by-step implementation frameworks and training to equip staff with relevant skills to compete credibly and effectively as sustainability becomes integral to competitiveness.
These strategic initiatives are being undertaken against a more challenging backdrop.
Global dynamics continue to be a challenge, with about 36% of survey respondents pointing out that operations had been affected by tariff and trade restrictions, with impacted businesses citing higher operating costs and supply chain disruptions, including delays and materials shortages.
Despite these headwinds, sentiment in the year ahead seems measured yet optimistic. Some 57% of respondents expected their business performance to improve compared to last year, underpinned by intentional investments in productivity and expansion into new markets.
Chen Ze Ling, group head of corporate and SME Banking, DBS, says: “The survey reflects the pragmatic approach many SMEs are taking to navigate an uncertain environment. Businesses are taking clear, practical steps — expanding their footprint, investing in AI to drive efficiency and strengthening their sustainability credentials to stay competitive.”
As at 4.04pm, shares in DBS are trading 32 cents lower at $57.87.
