Singapore’s small and medium enterprises ( SMEs ) are doubling down on generative artificial intelligence ( GenAI ), employee upskilling and overseas expansion as they navigate their way through the ongoing macroeconomic uncertainty and market volatility, according to a recent survey.

Singaporean businesses are increasingly leveraging AI-driven tools and seeking new markets in the Association of Southeast Asian Nations ( Asean ) and other high-growth regions, finds Singaporean bank DBS’ Business Pulse Check Survey 2025, which engaged over 110 SMEs from various industries and offers a snapshot of evolving priorities for businesses in a rapidly shifting economic landscape.

Notably, 73% of SMEs, according to the survey, plan to invest in GenAI solutions to enhance productivity, with 32% already using it for marketing and communications.

In line with Singapore’s own national AI push, 72% of respondents say they are also focusing on upskilling employees, ensuring they can effectively adopt and implement AI-driven technologies.

Beyond digital transformation, SMEs are also setting their sights on global growth, with the survey revealing that 70% are allocating capital for regional expansion and 60% giving precedence to Asean and other high-growth economies.

To support their cross-border expansion, businesses emphasize the need for market insights, trade law guidance and access to reliable supplier networks.

Sustainability, the survey reveals, is also on the radar for the firms as climate regulations tighten. However, while 36% of SMEs have begun sustainability preparations, most respond that they remain in the early stages.

Key barriers to adopting sustainable practice progress include limited resources, complex regulations and high transition costs, highlighting the need for ongoing financial and advisory support.

"SMEs in Singapore are taking bold steps to future-proof their businesses, whether by investing in GenAI or expanding into high-growth markets,” states Koh Kar Siong, the bank’s group head of corporate and SME banking. “Their adaptability and commitment to transformation are essential for staying competitive.”