After a robust performance in 2024—when Singapore’s economy expanded by 4.4 per cent, outpacing the previous year’s growth—business leaders entered 2025 with renewed optimism.
However, as the year unfolded, the outlook became clouded by intensifying geopolitical rivalries in the Middle East and Europe, and most notably, by the escalation of global trade wars. The Trump administration’s imposition of high tariffs sent shockwaves through international markets, capturing the attention of business communities worldwide and reminding us of Singapore’s vulnerability to external shocks as one of the world’s most open economies with a trade-to-GDP ratio exceeding 300 per cent.
Business leaders are increasingly concerned about the risks and uncertainties facing Singaporean companies, particularly how these will affect growth and strategy. Slower economic growth, weaker sentiment, and reduced international trade are dampening investment and demand across sectors. Supply chain disruptions and higher import costs from tariffs and global volatility are impacting both export-oriented and domestic businesses. Even those focused on the local market may face delays, rising prices, and softer consumer demand as households tighten spending.
Despite these headwinds, Singaporean businesses are not without recourse. Drawing on insights from the recent IndSights Research Business Leaders Forum, this article explores the key risks and uncertainties for 2025—and, crucially, the strategies that can help companies navigate this challenging landscape and continue to thrive.
Turning uncertainty into opportunity
While headlines may paint a sobering picture, Singaporean businesses should not be discouraged by prevailing uncertainty.
At the forum, Ho Kwon Ping, Founder of Banyan Group, reminded leaders that resilience is forged in adversity. He cautioned against letting constant news and media commentary dictate business sentiment or strategy. Instead, Ping urged leaders to critically assess their unique position and seek ways to pivot and adapt for success in this new environment.
Mitigating protectionism through diversification of markets
Amid heightened global uncertainty and volatility, Ping stressed the importance of market diversification for Singaporean businesses. Given Singapore’s limited domestic market, he cautioned against a local-only focus and advocated making overseas expansion a key part of long-term strategy.
Drawing from his own entrepreneurial journey, Ping noted he launched his first resort in Thailand, only opening one in Singapore three decades later, underscoring his commitment to building an international brand. He also cited fellow panellist Elizabeth Liau, Founder of Maison de L’asie, who prioritised overseas growth by marketing her luxury perfumes in non-traditional destinations such as Lithuania, Paraguay, and Romania.
Their experiences demonstrate that, especially during periods of global volatility, businesses should look beyond conventional markets to remain agile, manage risks, and achieve sustainable growth.
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Choosing the right partner is key to local market success
Evelyn Tay, CEO of EtonHouse International Education Group, which operates 100 schools in nine countries, emphasised the importance of partnering with the right local stakeholders. She noted that having local partners aligned with the company’s values is vital, as it provides insights into localisation and access to key networks.
Tay shared that while EtonHouse’s standard operating model worked well in Suzhou, it needed further fine-tuning in Chengdu due to differences in affluence and parental work patterns. This underscores the need for a local partner, as even within the same country, market dynamics can vary significantly.
Striking a balance between brand identity and cultural nuances
Liau, with her extensive experience marketing luxury fragrances globally, emphasised that definitions of luxury differ and shift across markets, demanding brands to balance authenticity and adaptation. For businesses to expand into new markets, it’s essential to focus on the local consumers and appeal to their tastes, preferences and needs.
Additionally, Liau noted the growing role of digital marketing and the need for an omni-channel strategy, where regional influencers and digital ambassadors can significantly enhance brand equity—even without a physical presence. Digital marketing also offers a cost-effective approach for businesses looking to diversify into global markets, enabling them to reach and engage new audiences efficiently while managing resources strategically.
For Singaporean businesses, investing in aligned local partnerships and developing digital strategies is vital for building brand presence and achieving sustainable growth in diverse global markets.
Diversify supply chains for stability
To remain sustainable and tackle the impact of the trade war, businesses can look to diversifying business supply chains, particularly for companies deeply involved in cross-border trade. Ping highlighted the importance of understanding Singapore’s unique and evolving position in the regional supply chain.
With Thailand and Indonesia joining BRICS and expanding their supply chain networks into markets like Brazil, Egypt, and Ethiopia, Singaporean businesses now have indirect access to new and previously untapped markets, opening fresh opportunities for trade and collaboration.
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“1 + 1 + 1 greater than 3” means more cooperation between ASEAN nations
The ASEAN Trade in Goods Agreement (ATIGA) has been particularly beneficial in this regard, with six out of ten ASEAN members eliminating import duties and the remaining four reducing them to minimal levels. This has fostered a robust internal market within Southeast Asia that remains resilient despite external pressures.
Reflecting this momentum, Prime Minister Lawrence Wong attended a two-day ASEAN summit in Kuala Lumpur, where leaders reaffirmed their commitment to ASEAN’s integration and community building, and discussed ways to promote a free, open, and inclusive regional architecture both within the bloc and with external partners. The talks also focused on strengthening ASEAN’s resilience by making intra-regional trade more seamless and tapping into new growth areas such as the digital and green economies.
Beyond Southeast Asia, Singaporean businesses can also explore new opportunities in regions such as the Gulf. Recent ASEAN summits have strengthened economic ties between ASEAN, the Gulf Cooperation Council (GCC), and China, with leaders affirming their commitment to deeper cooperation in trade, investment, and supply chain diversification.
Local and on-the-ground partnerships
As highlighted by our panellist, Jasper Lee, Founder of Kingsmen Global, a leading freight forwarding company, it is crucial for businesses that are looking to diversify into new markets to work closely with their logistics providers.
Understanding lead times, customs requirements, and regulations is essential to ensure timely deliveries and avoid costly disruptions at borders. This reinforces the earlier point on the importance of strong local partnerships—not only for market entry but also for maintaining resilient and agile supply chains, regardless of industry or destination.
Charting a path forward
Despite the challenges posed by global complexities and trade tensions, Singaporean businesses are encouraged to stay optimistic and seize the opportunities that arise during uncertain times. The strategies shared by our panellists highlight the importance of adaptability and resilience.
Coupled with Singapore’s pro-business stance and commitment to maintaining a conducive environment, businesses are well-positioned to navigate the evolving landscape.
This article covers key moments from the Business Leaders Forum 2025 by IndSights Research. Additional highlights from the discussion are available here.
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