DBS Survey: SMEs embracing Gen AI, upskilling and global expansion to stay competitive
Singapore.03 Feb 2025
Seven in 10 intend to tap Gen AI to transform business operations;one-third already leveraging it for marketing and communications
60% planning overseas expansion, targeting Asean and high growth markets
Singapore, 03 Feb 2025 - Local small and medium enterprises (SMEs) are gearing up for the future by investing in generative AI (Gen AI) solutions, employee upskilling and overseas expansion to stay competitive amid macroeconomic uncertainty and market volatility. These were the findings from DBS’ latest SME Pulse Check Survey conducted early this year.
Gen AI adoption emerged as a major theme among companies surveyed. In line with a national push to raise awareness and accelerate take up rates of this game-changing technology, 73% of respondents said they were planning to invest in Gen AI-powered solutions. About 72% were planning to upskill employees and strengthen their teams’ readiness to adopt such advanced technologies. Another 32% said they had already started experimenting with Gen AI tools for functions such as marketing and communications.
To help accelerate their transformation journey, companies said that government grants, access to affordable digital solutions and practical advice on the most appropriate tools for specific business needs were the most helpful.
Companies polled were bullish on overseas expansion, with about 70% intending to allocate capital towards regionalisation. More than 60% of companies had a go-to-market strategy targeting Asean and other high-growth regions. To succeed, respondents identified market insights, guidance on trade laws and compliance, as well as access to reliable suppliers and distributors’ network as the top resources needed to support their internationalisation efforts.
The survey also explored SMEs’ sustainability preparedness as mandatory climate disclosures for listed companies take effect this year. These regulations, aimed at reducing carbon emissions, are expected to significantly impact SMEs embedded within the supply chains of large corporates.
While 36% of SMEs have started or are well into their preparations, the majority remain in the early stages of their sustainability journeys, highlighting the critical need for continued support. The top barriers to greening operations included limited resources, navigating complex regulations and managing transition costs, underscoring the importance of continued capacity building and access to financial support.
Koh Kar Siong, Group Head of Corporate and SME Banking, DBS, said: “SMEs in Singapore are taking bold steps to future-proof their businesses, whether by investing in Generative AI to boost productivity or expanding into high-growth markets to capture new opportunities. Their adaptability and commitment to transformation are essential for staying competitive in an increasingly uncertain landscape. At DBS, we are dedicated to fostering this entrepreneurial spirit by providing financial advisory, market intelligence and strategic connections to help our clients achieve sustainable growth and long-term success.
The annual DBS Pulse Check Survey engaged more than 110 SMEs across diverse industries to better understand the needs, concerns and aspirations of the local 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 16 consecutive years from 2009 to 2024.
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 supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
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.
Gen AI adoption emerged as a major theme among companies surveyed. In line with a national push to raise awareness and accelerate take up rates of this game-changing technology, 73% of respondents said they were planning to invest in Gen AI-powered solutions. About 72% were planning to upskill employees and strengthen their teams’ readiness to adopt such advanced technologies. Another 32% said they had already started experimenting with Gen AI tools for functions such as marketing and communications.
To help accelerate their transformation journey, companies said that government grants, access to affordable digital solutions and practical advice on the most appropriate tools for specific business needs were the most helpful.
Companies polled were bullish on overseas expansion, with about 70% intending to allocate capital towards regionalisation. More than 60% of companies had a go-to-market strategy targeting Asean and other high-growth regions. To succeed, respondents identified market insights, guidance on trade laws and compliance, as well as access to reliable suppliers and distributors’ network as the top resources needed to support their internationalisation efforts.
The survey also explored SMEs’ sustainability preparedness as mandatory climate disclosures for listed companies take effect this year. These regulations, aimed at reducing carbon emissions, are expected to significantly impact SMEs embedded within the supply chains of large corporates.
While 36% of SMEs have started or are well into their preparations, the majority remain in the early stages of their sustainability journeys, highlighting the critical need for continued support. The top barriers to greening operations included limited resources, navigating complex regulations and managing transition costs, underscoring the importance of continued capacity building and access to financial support.
Koh Kar Siong, Group Head of Corporate and SME Banking, DBS, said: “SMEs in Singapore are taking bold steps to future-proof their businesses, whether by investing in Generative AI to boost productivity or expanding into high-growth markets to capture new opportunities. Their adaptability and commitment to transformation are essential for staying competitive in an increasingly uncertain landscape. At DBS, we are dedicated to fostering this entrepreneurial spirit by providing financial advisory, market intelligence and strategic connections to help our clients achieve sustainable growth and long-term success.
The annual DBS Pulse Check Survey engaged more than 110 SMEs across diverse industries to better understand the needs, concerns and aspirations of the local SME community.
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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 16 consecutive years from 2009 to 2024.
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 supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
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.
