Small and medium-sized enterprises (SMEs) plan to expand into international markets in 2026, according to the latest survey by DBS Bank.

The survey gathered data between December 2025 and January 2026 and it showed that 82% of the surveyed firms plan to expand to overseas markets this year. The most ambitious firms are from the information and communications and manufacturing sectors.

According to the statistics, almost half of the surveyed companies (49%) said that they are expanding to reach new customer bases and 43% said that they prioritize strengthening their overseas brand presence. Findings point out the strategy of Singapore’s business landscape to diversify revenue streams and reduce reliance on a single market.

Many companies that plan to expand overseas highlighted three main requirements for a smooth expansion:

• Trusted local partners in target markets
• Access to reliable market insights
• Guidance on local regulatory requirements

AI adoption is growing, but integration is still limited

Technology, and in particular Artificial Intelligence (AI), has become a central tool for competitiveness in the local business market. Although the survey shows that about 67% of firms use some form of AI in their operations, there are still only 12% that fully integrated it into their business, as many are still at an early or intermediate stage of adoption.

Surveyed companies said that implementation of AI into their business systems and turning AI tools into measurable productivity gains would be less challenging with proper financial support, expert guidance and partnerships with technology providers.

Trade pressures are still present

Expanding overseas can be challenging for companies because of tariffs and trade restrictions. Around 36% of respondents report that these factors have affected their operations. Reported impacts include higher operating costs and supply chain disruptions, such as delays and material shortages.

Nevertheless, SMEs remain optimistic. About 57% of them expect business performance to improve in 2026, supported by investments in productivity and international expansion.