Businesses in Singapore face mounting cost pressures

Nearly all businesses in Singapore are grappling with higher operating costs due to rising energy prices, with more than half also reporting increasing manpower expenses, according to a snap poll released Monday by the Singapore National Employers Federation.

The survey, conducted from April 10 to 16 and covering 210 companies across manufacturing, services, and construction, found that 96 percent of respondents reported higher operating expenses, News.Az reports, citing Xinhua.

Among them, 41 percent experienced moderate increases ranging from 11 percent to 25 percent, while 19 percent reported significant cost surges exceeding 25 percent.

Utilities and fuel emerged as the most affected cost components, each cited by 70 percent of respondents. These were followed by materials and supplies at 59 percent, and air and sea freight at 53 percent.

Businesses indicated that rising energy prices are also driving broader cost increases, pushing up expenses for raw materials, logistics, and temporary labor. The impact has been particularly pronounced in sectors such as hospitality, food and beverage, and retail.

Looking ahead, 39 percent of respondents expressed a negative outlook for the next six to 12 months, pointing to concerns over global trade disruptions and evolving supply chains.

Employers have called for targeted support measures if energy prices remain high, highlighting priorities such as tax relief or financing assistance (83 percent), energy subsidies (77 percent), and delays to manpower policy changes (55 percent).

News.Az 

By Nijat Babayev