SINGAPORE, June 11 (Xinhua) -- Small and medium-sized enterprises (SMEs) in Singapore are the least optimistic globally about international expansion amid ongoing geopolitical and economic uncertainties, according to a survey by international accountancy network Kreston Global revealed on Thursday.

A view of the Singapore skyline on June 1, 2026. (File photo: AFP)

The firm said in a statement that its report found Singapore business leaders rated their optimism towards overseas expansion at 7.2 out of 10, below the global average of 8.2.

Despite the cautious sentiment, 66 percent of respondents expect conditions for international business expansion to improve over the next two to three years, although this remains below the 86 percent recorded among their global counterparts.

While Singapore's international entrepreneurs are motivated by market growth and competitive advantage opportunities, 40 percent expect it to be very or somewhat difficult to expand overseas at the moment.

Geopolitical instability emerged as the top concern, cited by 52 percent of respondents, the highest among all markets surveyed. Supply chain disruptions were identified by 43 percent of respondents, while 42 percent pointed to tariff-related cost increases.

Helmi Talib, managing partner at Kreston Helmi Talib, said Singapore's trade-dependent economy is particularly exposed to global disruptions, leading businesses to adopt a more selective approach to international growth despite maintaining expansion ambitions.

The survey also found Singapore firms take a relatively measured view of artificial intelligence (AI) in overseas expansion. While 97 percent said AI influences their expansion strategy, only 52 percent described its impact as significant or very significant.