Marking 60 years of Singapore–Japan diplomatic ties, Kok Ping Soon, CEO of the Singapore Business Federation, explains how Singapore firms are moving beyond “business as usual” to active resilience, strengthening regional strategies, accelerating AI adoption and sharpening cyber defenses to stay competitive amid global uncertainty. He also outlines where Singapore–Japan collaboration can move beyond symbolism, including SME partnerships in high-tech ecosystems, talent exchanges and joint decarbonisation pilots.
Bridges: What has changed most significantly for Singapore’s business community, and what do you see as the most important progress that has been made, both in how companies are operating and in the support ecosystem around them?
Kok Ping Soon: The most significant change for Singapore’s business community is the shift from “business as usual” to a model of active resilience. In an era of global trade headwinds, companies are no longer just reacting to shifts; they are proactively rebuilding their core operating models around internationalisation, digital intelligence, and sustainability.
Our focus at SBF is clear: to help build a future-ready business ecosystem anchored in resilience, innovation, and regional connectivity. As reported in our Year-in-Review for 2025, SBF has supported 13,800 companies through programmes across our six Action Agendas, an increase of more than 70% from 2024. We have significantly accelerated the global footprint of local enterprises, facilitating 232 overseas projects across 27 countries and delivering over 1,650 trade and investment advisories to help firms navigate a complex international landscape. This expansion was bolstered by the establishment of new Singapore Enterprise Centres in India and the UAE, alongside targeted talent development initiatives like the Overseas Markets Immersion Programme, which placed 124 professionals in international roles.
By integrating these global scaling efforts with advancements in cyber-resilience, sustainability, and cross-border networking, SBF continues to empower Singapore businesses to remain competitive and socially impactful on the world stage.
From SBF’s vantage point, what is working best in practice for businesses today as they navigate uncertainty and compete regionally, and where are the most persistent pain points that still need collective solutions from industry and policymakers?
From SBF’s perspective, the businesses excelling today are those transitioning from defensive posturing to a proactive regionalisation strategy. We find that firms are most successful when they treat Singapore as a high-trust “command centre” to navigate ASEAN’s fragmented markets, leveraging our robust legal and logistics frameworks to manage complex supply chains. This regional focus is increasingly powered by purposeful digitalisation; leading firms are integrating AI and automation to drive tangible productivity gains, allowing them to remain competitive in a high-cost environment while maintaining a lean, agile operational structure.
“Our focus at SBF is clear: to help build a future-ready business ecosystem anchored in resilience, innovation, and regional connectivity.”
Kok Ping Soon, Chief Executive Officer of the Singapore Business Federation
However, persistent pain points remain that cannot be solved by individual firms alone. The most significant hurdle is the “profitability squeeze,” driven by the dual pressures of rising manpower costs and escalating rental expenses — challenges cited by a majority of our members in the National Business Survey 2025 – Annual Business Sentiments Edition. Furthermore, as businesses scale digitally and geographically, they face a growing “cyber-resilience gap” and a shortage of specialised talent in emerging fields. Addressing these bottlenecks requires a collective, ecosystem-led approach between industry and policymakers to ease resource constraints, lower the barriers to internationalisation, and ensure the workforce is equipped for a multipolar, tech-driven future.
When you think about “real implementation” versus good intentions, where do you see Singapore businesses making the strongest strides right now, and what capabilities do you believe will matter most over the next 12 to 18 months for companies to stay resilient, relevant and growth-oriented?
The transition from “good intentions” to “real implementation” is most evident in how Singapore businesses are moving beyond basic technology adoption towards purposeful AI diffusion and strategic regionalisation. As they navigate rising global trade volatility, firms are actively diversifying supply chains and deepening their presence within ASEAN. According to the 2025 SME Internationalisation Index, ASEAN continues to anchor firms’ internationalisation strategies, with businesses prioritising deeper engagement in familiar regional markets.
Over the next 12 to 18 months, the capabilities that will truly define resilience are commercial agility and cyber-resilience. As profitability expectations have softened due to a “squeeze” from rising manpower and rental costs, companies must prioritise positive cash flow management and advanced digital defense to safeguard their operations. Ultimately, the ability to leverage frontier technologies like AI — while simultaneously navigating higher carbon taxes and complex global trade rules — will be the critical differentiator for companies striving to remain relevant and growth-oriented in a cautious 2026 economic climate.
“As we approach the 60th anniversary of diplomatic relations (SJ60), SBF seeks to enable Singapore SMEs to integrate into Japan’s high-tech manufacturing and asset management ecosystems, including partnering with Tokyo-based companies while co-developing decarbonisation solutions like ammonia and hydrogen fuels for regional maritime trade.”
SBF’s National Business Survey 2025 – Digitalisation Supplement reports that four in five businesses are actively engaged in digital transformation, with widespread adoption of foundational technologies such as e-payment, cloud computing and cybersecurity. Looking ahead, businesses are increasingly prioritising Artificial Intelligence (AI), data analytics and Internet of Things (IoT) as strategic enablers over the next 12 months. Technology is therefore no longer an add-on for Singapore businesses — it is the engine of competitiveness. As AI and data become central to business strategy, SBF’s focus is on equipping firms with the skills, capabilities, and confidence to integrate the use of these tools deeply into their operations.
Looking ahead to SJ60, where do you see the most meaningful Singapore–Japan collaboration opportunities that go beyond symbolism and can translate into tangible value for businesses and people, and what role do you see SBF prioritising to help catalyse those outcomes?
Singapore and Japan share a longstanding and robust economic partnership. Japan consistently ranks among the top internationalisation markets for Singapore businesses, according to SBF’s SME Internationalisation Index. With Japan being a key innovation partner, Singapore continues to serve as a strategic gateway to Southeast Asia for many Japanese companies.
As we approach the 60th anniversary of diplomatic relations (SJ60), SBF seeks to enable Singapore SMEs to integrate into Japan’s high-tech manufacturing and asset management ecosystems, including partnering with Tokyo-based companies while co-developing decarbonisation solutions like ammonia and hydrogen fuels for regional maritime trade. SBF’s priority is to act as the primary catalyst, utilising platforms like Singapore Regional Business Forum and Overseas Market Immersion Programme to facilitate talent exchanges and joint pilots.
We look forward to upcoming activities such as the “CEO Business Meeting Event for Eco-Tech”, co-organised with SME Support Japan, in July 2026. A high-level engagement for Singapore companies that are keen for business opportunities with Japanese SMEs, the event aims to facilitate strategic discussions between senior decision-makers, explore potential collaborations in the eco-tech sector, and foster long-term partnerships between companies from both countries.
