SBF launches actionable Playbook to help Singapore businesses navigate rising trade barriers amidst greater economic uncertainty

The Singapore Business Federation (SBF) today launched its “Navigating U.S. Tariffs” Playbook, a practical guide designed to help Singapore businesses understand, respond to, and plan for the impact of recent tariff changes introduced by the United States (U.S.). This initiative comes as an SBF poll reveals significant concerns among local companies about the potential negative effects of these new tariffs on their operations and financial health.

Poll Findings

The poll of business leaders, conducted from 11 to 23 April 2025, received nearly 300 responses from businesses across all key industries, comprising 81% small and medium-sized enterprises (SMEs) and 19% large enterprises or multinational corporations (MNCs).

Four in five businesses (81%) expect the U.S. tariffs to negatively impact their operations in the next six months, with 28% anticipating a very negative impact. MNCs viewed it more negatively (89%) compared to SMEs (78%). Half of the respondents reported having direct or indirect exposure to the U.S. market, with nearly one in five (18%) of these businesses deriving more than half of their annual revenue from it. MNCs are more exposed to the U.S. market (62%) than SMEs (50%).

In the near term, three in four businesses expect a decline in revenue, and one in two foresee an increase in operational costs. Two in five businesses are already feeling the effects of the tariffs with SMEs more acutely impacted (40%) than MNCs (31%). Beyond pricing, top concerns include currency fluctuations (60%), supply chain reconfigurations (51%), and the risk of retaliatory measures (45%). In response, while seven in ten businesses plan to raise prices, many will absorb at least part of the cost increases to remain competitive.

Cashflow for one in two businesses is impacted by delayed/postponed/reduced orders from customers and volatility of ordering patterns and extended payment terms. As a result, three in five businesses anticipate an increased need for working capital. More SMEs (24%) reported a significantly increased need compared to MNCs (14%).

Among the top asks of government are tax reliefs, financial assistance, regulatory flexibility, and workforce support. Seven in ten businesses expressed a desire for timely updates and clearer guidance on evolving global trade regulations and Free Trade Agreement (FTA) compliance.

A Playbook for Action and Resilience

In response to the findings, SBF's Centre for the Future of Trade and Investment (CFOTI) in collaboration with partners including DBS Bank, DHL Express Singapore, Pacific International Lines, PwC Singapore, and Rajah & Tann Singapore LLP, have developed the "Navigating U.S. Tariffs" Playbook that provides a structured, time-phased response framework to help Singapore companies, especially SMEs, act decisively in the face of these trade disruptions.

The Playbook lays out a series of actions to be taken across three timed horizons:

Make Sense (0–3 months): This initial phase focuses on conducting risk mapping, financial assessments, and contractual reviews to stabilise operations and clarify exposures. This includes recommendations on Harmonised System (HS) code analysis and FX exposure.
Take Action (4–12 months): The second phase guides businesses in reconfiguring supply chains, tapping on Singapore’s FTAs, securing financing, and adapting commercial strategies. Strategies cover dual sourcing and using tariff-neutral hubs.
Plan Ahead (12+ months): The final phase emphasises building long-term resilience through digitalisation, innovation, market diversification, and business model transformation. Recommendations include green finance and digital supply chain integration.

Mr Kok Ping Soon, Chief Executive Officer of SBF said, “The on-again, off-again erratic tariff policies by the US have created deep uncertainty for Singapore businesses. Our poll shows strong concern across SMEs and MNCs alike, particularly for those in trade-reliant sectors. More than the actual tariffs, it is the uncertainty over the final outcome that is paralysing business investment. The launch of our “Navigating U.S. Tariffs” Playbook aims to provide practical, time-phased guidance for companies to take concrete steps in the face of uncertainty. This playbook gives them a structured way to assess where they stand, what they can do, and how to prepare for the longer-term shifts in global trade. It’s not about reacting—it’s about repositioning. In a more fragmented global trade environment, Singapore businesses must make sense of risks, take bold action, and plan ahead for resilience.”

In addition to the Playbook, CFOTI will be conducting workshops and briefings to update businesses on tariff rules interpretation, FTA utilisation, and trade compliance. These sessions will be complemented by support from CFOTI’s network of strategic partners, including legal, financial, and logistics specialists, who can assist with contract reviews, financing arrangements, and supply chain restructuring. CFOTI Trade Advisors will also be available for consultations to help businesses assess their specific exposure, identify viable response options or trade-offs, and connect them with expert partners where needed. These efforts will help companies move from awareness to action by applying the Playbook’s recommendations to suit their respective sector, business model, and market strategy.

Please refer to the Annex for Partners’ quotes, the full "Report on Sentiments on U.S. Tariffs Changes" and the "Navigating U.S. Tariffs” Playbook.

Full Report on Sentiments on U.S. Tariffs Changes: https://sbf.org.sg/docs/default-source/cfoti/cfoti_poll-of-businesses---sentiments-on-us-tariffs.pdf?sfvrsn=dd4d8a9c_1

Navigating U.S. Tariffs Playbook to Support Business Action: https://www.sbf.org.sg/docs/default-source/cfoti/cfoti_navigating-us-tariffs-playbook.pdf

Thursday, 22 May 2025

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SBF launches actionable Playbook to help Singapore businesses navigate rising trade barriers amidst greater economic uncertainty

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