Singapore companies turn cautious as business sentiment takes hit from Iran war: Survey

Businesses turning more cautious in their investment and expansion decisions which could tamper growth in the short-term. Read more at straitstimes.com.

SINGAPORE - Singapore companies grew more pessimistic as war broke out in the Middle East, sending energy prices soaring and disrupting supply chains, a survey released on March 16 showed.

The Singapore Commercial Credit Bureau (SCCB) said its Business Optimism Index (BOI) for the second quarter of 2026 fell to 4.1 percentage points, from 4.3 percentage points in the previous quarter and 5.2 percentage points a year ago.

Ms Audrey Chia, SCCB’s chief executive officer, said: “Business optimism has softened for the second straight quarter, reflecting the cautious stance that many companies are now adopting amid heightened global geopolitical uncertainties.

While the survey’s key indicators remain expansionary, Ms Chia noted that: “The moderation in selling prices and new orders also indicates that businesses are facing increasing margin pressures even as demand stabilises.

“With heightened global uncertainties, businesses are adopting a more cautious stance in their investment and expansion decisions which could tamper growth in the short-term.”

The Iran war has tilted the odds in favour of a tightened monetary policy in April, with one core inflation forecast at 1.3 per cent in Q2 and 1.8 per cent in the second half of the year.