Singapore Businesses Show Increased Optimism for 2025, But Talent Hub Appeal Declines

Singapore businesses are displaying greater optimism and satisfaction as they approach 2025, according to the latest National Business Survey (NBS) 2024 by the Singapore Business Federation (SBF). The survey revealed that 40% of organisations are satisfied with the current business environment, a 10-percentage point rise from mid-2024. Furthermore, nearly a third (26%) of companies expect improvements in the coming year, surpassing the 22% predicting a downturn.

While challenges persist, such as rising business costs — particularly in manpower (66%) — and uncertainties around customer demand (45%), 57% of businesses have managed to either maintain or grow their profitability. Many companies have responded with strategies like cost-cutting measures (51%), price increases (41%), and improved inventory management (30%) to maintain stability.

However, there is a noticeable decline in Singapore’s appeal as a global talent hub. Only 41% of organisations rated Singapore highly as a destination for talent, down from 43% last year, with larger companies showing the most significant drop. This marks a concerning trend for the country, which has long been a key player in attracting skilled workers from around the world.

In terms of future planning, businesses are focusing heavily on investments that will drive long-term growth. Among their priorities, 36% are concentrating on employee training, 37% are investing in new technologies and digitalisation, and 26% plan to make new investments in the upcoming year. Additionally, many companies are seeking government assistance, with 35% looking for support in financing, 34% in human capital development, and 33% in digitalisation.

As for the 2025 budget, companies’ top requests include measures to alleviate cost pressures (64%), support for attracting and retaining local talent (43%), and solutions to challenges surrounding foreign manpower (41%).

Kok Ping Soon, CEO of the Singapore Business Federation, expressed optimism in light of the survey findings, noting that businesses are demonstrating resilience by preparing for future growth. He acknowledged the concerns over rising costs but was encouraged by the increased investment in people, technology, and innovation. He added that Singapore’s future success hinges on its ability to increase the absorption of a complementary workforce, highlighting the need for greater integration of local and foreign employees in the workplace.