Future-proofing your business in 2025

As businesses ramp up in 2025, many are looking to build greater resilience by leveraging technology and capture emerging growth opportunities in the face of an uncertainty.

For SMEs, this means making bold moves – whether its adopting new digital solutions, expanding overseas or integrating sustainability into their operations. But change does not come easy, and many business owners still grapple with rising costs, regulatory uncertainty and fierce competition. That is why having the right support and resources is more important than ever.

With Singapore Budget 2025 on the horizon, the latest DBS Business Pulse Check Survey highlights what local enterprises are prioritising, what challenges they face and most importantly – what they need to succeed.

Making Big Bets on Digital

Digital transformation is evolving. The rise of generative AI (Gen AI) is ushering in a new era – one where businesses move beyond basic digital adoption to intelligence-driven decision making. According to the survey, three in four SMEs have already embraced digital banking solutions and are now exploring next-generation technologies like digital analytics and Gen AI to sharpen insights, enhance customer engagement, and drive efficiency.

This shift aligns with the Infocomm Media Development Authority (IMDA)’s Digital Enterprise Blueprint, which underscores the need for SMEs to integrate advanced technologies – not just to streamline operations, but to unlock new efficiencies, scale at speed, and stay ahead in an increasingly competitive digital economy.

That said, digitalisation is not always straightforward. The cost of new tools, the overwhelming array of options, and a lack of in-house expertise often complicate the journey. While grants and subsidies have helped businesses take the first step, SMEs increasingly seek expert guidance to navigate the complexity and identify the right solutions for their needs.

Whether it’s automating processes, personalising marketing with AI, or simply running more efficient operations, digital tools are proving to be essential for long-term business success.

The Business Case for Going Green

Sustainability is no longer just a nice-to-have – it’s becoming a business necessity. With growing pressure from customers, investors, and regulators to cut emissions and report progress, companies are being pushed to take actions. Yet, many are still in the early stages of their green transition.

Survey results show that about 60% of businesses have either not started or are only just beginning to prepare for sustainability regulations. The biggest hurdles? High costs, complex regulations and a lack of resources.

While many SMEs recognise the importance of sustainability, translating ambition into action remains a challenge. Business owners say they need clearer guidance, industry-specific roadmaps, and financial support – such as government grants and subsidies – to ease the transition.

The message is clear: going green is not just about compliance, it’s about staying relevant, competitive, and unlocking new growth opportunities.

Growing Beyond Borders

Rising geopolitical tensions – including the threat of a trade war following US tariffs on Mexico, Canada and China – are prompting businesses to rethink their supply chains. To mitigate risks from disruptions and shifting trade policies, companies are increasingly seeking alternative manufacturing and sourcing hubs.

With ASEAN poised to benefit from this supply chain diversification, local businesses are setting their sights abroad to seize new growth and investment opportunities. The survey found that more than 60% of SMEs plan to expand beyond Singapore’s shores in 2025, eyeing ASEAN and other high-growth regions as key markets.

Many are already exploring opportunities within the recently announced Johor-Singapore Special Economic Zone (JS-SEZ), which is expected to create fresh cross-border business prospects for SMEs. Among its key benefits, the JS-SEZ will offer companies incentivised corporate tax rate for qualifying activities and more flexible foreign worker policies, facilitating smoother labour mobility between Singapore and Malaysia.

However, expanding internationally involves more than just setting up shop in a new country. Businesses cite regulatory complexity, uncertain market demand, and a lack of local presence as their biggest challenges. To succeed, SMEs need better access to market intelligence, trade laws, and strong local networks to ease their market entry.

Despite these hurdles, SMEs increasingly see internationalisation as a key driver of long-term growth, enabling access to new revenue streams and larger customer bases. The National Business Survey 2024 by the Singapore Business Federation found that 59% of businesses already operating overseas expect an increase in international sales within the next 12 months, reinforcing the tangible benefits of expansion. For SMEs that successfully navigate cross-border challenges, global markets offer greater revenue potential, diversified risk, and long-term business resilience.

Staying Ahead in an Uncertain World

In an increasingly complex business environment, companies looking to future-proof their operations cannot go at it alone. Strong partnerships and targeted support will be key to helping businesses navigate digital transformation, sustainability goals and overseas expansion.

Recognising these challenges, DBS has developed a suite of programmes to provide businesses with the expertise, tools and connections they need to succeed. 

Koh Kar Siong, Group Head of Corporate and SME Banking, DBS, said: “SMEs in Singapore are taking bold steps to future-proof their businesses, whether by investing in Generative AI to boost productivity or expanding into high-growth markets to capture new opportunities. Their adaptability and commitment to transformation are essential for staying competitive in an increasingly uncertain landscape. At DBS, we are dedicated to fostering this entrepreneurial spirit by providing financial advisory, market intelligence and strategic connections to help our clients achieve sustainable growth and long-term success.

To support SMEs in their transformation journey, DBS has introduced several key initiatives:

• The Spark GenAI Programme: Developed in collaboration with Enterprise Singapore and the Infocomm Media Development Authority, this initiative helps SMEs adopt AI-driven solutions to enhance productivity and drive innovation.

• The ESG Ready Programme: Designed for businesses working towards sustainability goals, this programme provides expert guidance and financial support to help SMEs build stronger sustainability capabilities.

• The Bridging Business Horizons Programme: For companies looking to expand beyond Singapore, this initiative offers market insights, regulatory guidance and networking opportunities to help companies break into regional markets and seize new business opportunities.

By partnering with DBS, businesses can tap into specialised expertise, industry connections, and tailored solutions to strengthen resilience and drive growth in an increasingly volatile landscape.