Singapore’s business leaders are the least optimistic about international expansion among the markets surveyed in Kreston Global’s latest Interpreneur Report, underscoring a more cautious approach to cross-border growth amid rising geopolitical friction, supply-chain fragility, and tariff pressure.
The report, based on a survey of 1,100 “interpreneurs” operating businesses with annual revenue between £10 million and £300 million (roughly US$12.7 million to US$381 million) across 11 countries, gives a rare window into how mid-market firms that have already expanded overseas are thinking about the next stage of foreign growth. Singapore respondents averaged a 7.2 out of 10 score for the current business climate for expansion, compared with 8.2 globally.
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The more muted sentiment coexists with guarded optimism. Two-thirds of Singapore interpreneurs, or 66 per cent, expect the environment for international business expansion to become more favourable in the next two to three years. However, that optimism lags the 86 per cent seen among their global peers.
A city-state acutely exposed to global trade dynamics, Singapore unsurprisingly flags geopolitical instability, supply-chain disruption, and tariff-related costs as the most significant threats to overseas operations. In each case, the city recorded some of the highest concern levels among countries polled: 52 per cent cited geopolitical instability (versus a 45 per cent global average), 43 per cent named supply-chain disruption (global average 31 per cent), and 42 per cent pointed to tariff-related cost increases (global average 40 per cent).
“These are direct and profound impacts on the economy and business confidence,” said Helmi Talib, managing partner at Kreston Helmi Talib, Singapore. “As a city that heavily relies on trade, global headwinds such as geopolitical tensions and supply-chain disruption shape a more cautious, selective approach to international expansion.”
The Singapore context: still open, but choosy
Singapore’s priorities when assessing expansion destinations remain rooted in traditional fundamentals: future economic growth prospects (46 per cent), favourable tax policies (44 per cent), trade agreements (44 per cent), and alignment with long-term strategy (43 per cent). Access to skills and talent, and to digital infrastructure, was each featured by 38 per cent of respondents.
That emphasis signals how Singaporean firms are treating overseas expansion more as a calculated extension of their domestic strategies than as a leap into unfamiliar technology frontiers. Access to new customer markets (52 per cent), strategic partnerships or joint ventures (51 per cent), and the ability to lower production or operating costs (43 per cent) were cited as the most significant opportunities for international growth.
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For Southeast Asia, that spells an opening for deeper commercial ties built on partnerships rather than purely technology-driven propositions. ASEAN economies offering talent, lower operating costs, or attractive trade pacts may attract Singapore capital and management expertise, but likely on a more project-by-project basis than in the boom years of rapid outbound deals.
AI and technology: embedded, not transformative
One of the report’s more revealing findings concerns the role of artificial intelligence. While 97 per cent of Singapore respondents say AI influences their expansion strategy to some extent, only 52 per cent describe that impact as “significant” or “very significant”, well below the 74 per cent global average. Singapore interpreneurs are almost twice as likely as global peers (45 per cent versus 24 per cent) to regard AI’s impact as moderate or minor.
That pragmatism extends to technology more broadly. Just 25 per cent say access to digital technologies and innovation was a primary motivator for expanding overseas (global average 40 per cent), and only 37 per cent view advanced technology adoption as a major future opportunity (global average 52 per cent).
“Singapore is one of the most mature and hyper-connected digital markets globally,” Talib said. “Access to technology is less of a limiting or motivating factor in expansion decisions; AI appears to be embedded, business-as-usual rather than a transformational driver.”
For Southeast Asia, this has two implications. First, Singapore firms may look to regional markets for conventional expansion levers (market access, cost efficiencies, and partnerships) rather than leveraging a native technology advantage for exports. Second, local Southeast Asian startups and service providers that can offer targeted operational capabilities or support localisation will remain valuable to Singaporean entrepreneurs looking to scale abroad.
Practical responses: governance, processes and partnerships
Faced with a volatile, uncertain, complex and ambiguous (VUCA) environment, Kreston advises SMEs to prioritise internal alignment and operational readiness so they can move quickly when opportunities appear. “SMEs that strategically invest in strengthening governance, refining processes and establishing robust operating frameworks will be better equipped with the resilience and agility needed to act decisively as expansion opportunities regain momentum,” Talib said.
That message resonates across Southeast Asia, where mid-market firms often encounter regulatory complexity, talent gaps and fragmented supply chains. The report suggests Singapore-based firms may increasingly favour joint ventures, strategic alliances, and local partnerships to navigate those hurdles, a trend that could bring capital, governance standards and managerial know-how into the region.
A nuanced picture beneath a broadly positive headline
Liza Robbins, chief executive of Kreston Global, described the overall mood as resilient despite the challenges. “The finer details in the data tell a more nuanced story of businesses grappling with the challenges of AI, tariffs and geopolitical instability,” she said. “In spite of this, the resilience, drive and adaptability of interpreneurs have once again been underscored.”
For Southeast Asia, the Kreston findings emphasise a recalibration rather than retreat by Singapore firms: more selective, partnership-led expansion focused on market access, cost efficiency and regulatory alignment, with technology treated as an enabler rather than the primary rationale for outbound investment.
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In practice, that could translate to more Singapore capital flowing into targeted manufacturing hubs, logistics nodes and consumer markets within ASEAN, accompanied by operational and governance expertise, rather than the headline-grabbing tech acquisitions of previous cycles. For regional startups and policymakers, the opportunity lies in aligning incentives, easing market entry and demonstrating reliable local capabilities that complement Singapore’s cautious but persistent outward push.
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