2 in 3 Singapore businesses hit by Middle East conflict; SMEs most affected
A poll finds two-thirds of Singapore businesses report negative impact from the Iran-Israel war, with SMEs hit hardest. Revenue declines among smaller firms are more severe as supply-chain disruptions and fuel costs compound.
The Singapore Business Federation polled over 500 business leaders and found widespread strain across sectors. Direct and indirect impacts from the Iran war include higher transport costs, increased insurance premiums, and shipping route risks. The Strait of Hormuz disruption has forced freight rerouting at premium costs.
SMEs operate with less flexible supply chains and inventory buffers than large corporations. About 55% report revenue declines from local customers as their own input costs rise. Importers face margin squeeze because they cannot fully pass through logistics cost inflation to buyers. Payment terms are tightening and credit risk has climbed.
Domand softness is emerging in domestic-facing sectors. Customs clearance delays plague importers, and insurers increasingly refuse to cover Hormuz transits without heavy premiums. Both small-scale exporters and regional trade are expected to face medium-term headwinds.
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