SINGAPORE, 28 January 2026 – As Budget 2026 approaches, the Singapore Malay Chamber of Commerce & Industry (SMCCI) has gathered feedback from businesses across sectors to highlight the ground realities SMEs face in today’s challenging economic environment.
Rising operating costs remain a key concern for many enterprises. Members have cited pressures from manpower and wage costs, rental and utilities, financing and interest rates, as well as raw material, logistics, and compliance expenses. These cumulative cost pressures directly affect margins and constrain the ability of businesses, particularly smaller enterprises and home-based operators, to scale sustainably.
Other challenges include increasing competition, especially from overseas suppliers and international players, and the need to upgrade capabilities and adopt technology in an evolving market. While some businesses have benefitted from existing initiatives in areas such as digitalisation, overall sentiment indicates that more targeted and practical support is needed.
SMCCI members have highlighted areas where Budget 2026 could provide meaningful relief and support, including:
● Cost-management measures to alleviate pressures on operating, rental, and manpower expenses
● Workforce and productivity support, including skills upgrading, flexible manpower arrangements, and the adoption of automation tools
● Improved access to financing and grants, with simpler processes and clearer eligibility
● Support for growth and internationalisation, particularly for businesses exploring regional opportunities such as the Johor–Singapore Special Economic Zone
The challenges faced by businesses in heritage districts such as Kampong Gelam illustrate these broader trends. Rising costs, tenant turnover, and market pressures are impacting culturally rooted enterprises, which form the backbone of Singapore’s living heritage. Kampong Gelam is not only a conserved precinct of historical significance, but also a vibrant district shaped by generations of entrepreneurs, artisans, and family-run businesses. SMCCI recognises that what makes the area special goes beyond physical heritage; it is the people, traditions, and enterprises that have built the district over time and continue to give it meaning today.
Dr Abdul Malik bin Hassan, President of SMCCI, said:
“Kampong Gelam is a clear example of how SMEs, including those embedded in heritage districts, are navigating rising costs and operational pressures. As Budget 2026 approaches, it is important that policies support business sustainability while enabling growth and capability development across all sectors.”
SMCCI continues to advocate for SMEs by collecting ground feedback and facilitating dialogue among government agencies, business owners, landlords, and community organisations. Insights from heritage precincts such as Kampong Gelam, Geylang Serai and other culturally significant districts will help ensure that Budget 2026 measures are responsive, inclusive, and aligned with the practical needs of Singapore’s business community.
Further updates will be shared as discussions progress.