DBS Survey: 8 in 10 SMEs prioritise overseas expansion in 2026 to drive growth amid market volatility

Singapore, 10 Feb 2026 - To build greater resilience amid a complex operating landscape, local small and medium-sized enterprises (SMEs) are looking beyond domestic shores and accelerating technology adoption. These were key findings of the latest DBS Business Pulse Check Survey.

Of the 730 companies polled between December 2025 and January 2026, 82% said they planned to internationalise in 2026. This was led by firms in the information and communications as well as manufacturing sectors. Reaching new customer bases (49%) and building a stronger overseas brand presence (43%) were cited as the primary drivers, reflecting a strategic shift towards diversifying revenue streams and markets.

SMEs looking to enter new markets highlighted the importance of connections with trusted local partners, access to market insights and guidance on local regulatory requirements to support successful market entry and scaling.

In addition to regional expansion, technology – particularly artificial intelligence (AI) – is playing an increasingly prominent role in how companies are strengthening their competitive edge. About 67% of respondents said they are already applying some form of AI in their work processes.

However, adoption remains uneven across industries, with only 12% having fully integrated AI across their operations, indicating significant headroom for broader and deeper deployment. SMEs in the information and communications, electronics manufacturing, as well as professional services sectors were most advanced in their AI usage while those in the wholesale and trade sectors were least likely to have adopted AI solutions.

To further scale AI adoption, respondents cited the need for financial support or grants, expert guidance on how to apply AI more effectively and partnerships with technology providers as the most helpful forms of support in translating usage into tangible productivity gains.

SMEs are also making notable progress in their sustainability journeys as they align with evolving customer and market expectations. The proportion of businesses that considered themselves sustainability-ready rose to 49%, up from about one-third a year ago. Notably, the share of firms that felt unprepared had declined to 27% from 60% last year.

To sustain the momentum, SMEs highlighted the need for more affordable green technologies, clear step-by-step implementation frameworks and training to equip staff with relevant skills to compete credibly and effectively as sustainability becomes integral to competitiveness.

These strategic initiatives are being undertaken against a more challenging backdrop. About 36% of respondents said tariffs and trade restrictions affected their operations, with impacted businesses citing higher operating costs and supply chain disruptions, including delays and materials shortages.

Despite these headwinds, sentiment in the year ahead remains measured yet optimistic. Some 57% of respondents expected their business performance to improve compared with last year, underpinned by intentional investments in productivity and expansion into new markets.

Chen Ze Ling, Group Head of Corporate and SME Banking, DBS, said: “The survey reflects the pragmatic approach many SMEs are taking to navigate an uncertain environment. Businesses are taking clear, practical steps – expanding their footprint, investing in AI to drive efficiency and strengthening their sustainability credentials to stay competitive. At DBS, we remain committed to supporting enterprises through this journey, working alongside them to build resilience and support sustained, long-term growth.”

The annual DBS Business Pulse Check Survey engaged 730 companies across diverse industries to better understand the needs, concerns and aspirations of Singapore’s SME community.




About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 17 consecutive years from 2009 to 2025.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.

DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by uplifting lives and livelihoods of those in need. It provides essential needs to the underprivileged, and fosters inclusion by equipping the underserved with financial and digital literacy skills. It also nurtures innovative social enterprises that create positive impact.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.