More Businesses Expect Economy to Worsen, Cost Pressures to Rise: SBF Survey

The business outlook here has weakened considerably amid growing economic uncertainty, according to a Singapore Business Federation (SBF) survey released on May 28.

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The percentage of businesses that see the economy worsening over the next 12 months nearly doubled on the quarter, from 22 per cent in the fourth quarter of 2024 to 40 per cent in the first quarter of 2025, the National Business Survey (NBS) 2025 found.

"This bearish sentiment is shared by both small and medium-sized enterprises, with the proportion expecting worsening conditions increasing from 23 per cent to 41 per cent, and large companies, where the figure rose from 18 per cent to 38 per cent over the same period," the survey indicated.

It collated responses from 526 businesses across major sectors.

Businesses in the hotels, restaurants and accommodation, health and social services as well as retail trade sectors showed high pessimism about economic prospects for the next 12 months, SBF said.

Notably, the hotels, restaurants and accommodation sector had the most cautious outlook.

It recorded the lowest score among all sectors for Business Sentiment Index (BSI) — a new indicator that consolidates key measures that capture business confidence.

The sector's BSI of 52.2 was below the overall BSI of 56.5.