How Singapore's SMEs Are Shaping a Sustainable Future for Asean

They can catalyse responsible action locally and in the region, especially with better tools and stronger support.

- Eric Lim

The Singapore story is one of pragmatism, adaptability and entrepreneurial spirit, and nowhere is this better reflected than among the small and medium-sized enterprises (SMEs) that constitute more than 99 per cent of all locally registered companies.

SMEs employ 70 per cent of Singapore's workforce and play a pivotal role in driving our economy. As suppliers to large enterprises, they are also vital links in the local, regional and global supply chains.

With a small domestic market, Singapore's SMEs are under constant pressure to innovate, move quickly and look abroad to preserve long-term viability. The decisions they take have an outsized impact on how Singaporeans work and live.

Singapore's 60th birthday this year is an opportune time to reflect on how the nation has grown, and how the country's SMEs will carry us forward.

As we consider the role that SMEs play in our economic future, we should also reflect on their broader impact—both environmentally and socially.

These businesses influence everything from carbon footprints to community well-being, and understanding these dimensions can help us identify ways to support their growth, resilience and sustainability.

THE SUSTAINABILITY CHALLENGE

Sustainability pressures on SMEs are building on multiple fronts.

In a 2024 survey conducted by Schneider Electric, 78 per cent of SME respondents reported losing contracts due to emissions reporting gaps. In another survey by the Singapore Business Federation, in partnership with Bain & Company, 60 per cent reported upstream supply chain pressures.

Meanwhile, the average consumer is requiring more from retail brands. According to a PwC survey in partnership with UOB FinLab, 46 per cent of Asean consumers are making the more sustainable choice at checkout.