SME business prospects in Singapore are set to weaken in the coming quarters as tariff uncertainties dampen global trade and weaken the US dollar, hitting outwards-oriented sectors such as ICT, transport & logistics and wholesale trade.
Singapore bank bonds are likely to retain their safe-haven status in 2H2025, as their asset quality is expected to remain robust despite increased headwinds linked to tariffs.
Strong underwriting and risk management have kept small- and medium-sized enterprises (SME), trade-reliant industries and commercial real estate (CRE) loan exposures steady with no material stress points.
