Proxima has published research showing that Singapore businesses are the most likely among five surveyed markets to sustain operations for four to six months after a major supply chain shock. The study surveyed 515 Chief Executive Officers at companies with revenue above USD $500 million.
Half of the chief executives surveyed globally said their businesses would be unable to maintain day-to-day operations for more than three weeks if a major supply chain disruption struck immediately. In Singapore, 23% said their businesses could continue operating for four to six months, compared with 18% in the US, 10% in Germany, 8% in the UK and 5% in Australia.
That puts Singapore well above the global figure of 13% for companies able to sustain operations for that length of time. The results also point to a sharp divide between businesses that have built longer buffers into their supply chains and those that remain exposed to sudden disruption.
AI concerns
The research found that Singapore companies see artificial intelligence as both a growing risk and a practical tool in supply chain management. Some 22% of respondents in Singapore identified AI as the biggest financial threat to their supply chains, while 27% said it was the most underestimated threat.
At the same time, 93% said they had documented and tested plans to respond to AI-related disruption. Almost half, 47%, said they were very prepared.
Singapore businesses also reported using AI in day-to-day supply chain work. Cost modelling was cited by 50% of respondents, while 48% pointed to procurement automation.
Adoption still faces operational limits. Data quality was named as a barrier by 40% of respondents, followed by integration challenges at 30% and skills gaps at 29%.
Paying for resilience
The survey also examined how far companies are prepared to absorb higher supplier costs in exchange for greater resilience. Nearly three-quarters of chief executives globally said they would accept an increase of more than 10% in current third-party supplier costs to secure supply chain resilience.
Among Singapore respondents, 44% said they would accept paying between 11% and 20% more. This suggests a sizeable share of companies in the city-state are prepared to treat resilience as a direct operating cost rather than a secondary consideration.
Asked how they would fund those higher costs, 38% of global respondents said they would pursue cost-saving measures, 35% would pass prices on to customers and 26% would absorb the hit through lower margins. In Singapore, almost 40% said they would seek savings elsewhere, while only 30% would pass costs on to consumers, the lowest proportion among the countries surveyed.
Revenue exposure
The research underlines the financial risk attached to supplier disruption. Among Singapore respondents, 58% said a two-week interruption affecting their top three suppliers would put 11% to 20% of revenue at risk.
A further 22% said such a disruption could put 21% to 40% of revenue at risk. The figures suggest that even relatively short breaks in supply can have a material effect on large businesses.
Respondents in Singapore also reported mixed effects from protectionist trade measures such as tariffs. Some 34% said overseas demand for their products had risen over the past year, above the global average of 29%, while 23% said overseas demand had fallen, compared with a global average of 15%.
That split suggests shifts in trade policy do not affect all companies in the same way. Some firms appear to benefit from changes in sourcing or market access, while others face weaker demand.
Information sources
When dealing with supply chain disruption, Singapore companies said they rely on a broad mix of inputs. External advisers were the most commonly cited primary source of information at 24%.
AI-driven insights, supplier input, and internal experience and judgment followed at 19% each. This suggests many businesses are combining outside advice with internal and technology-based decision-making rather than relying on a single source.
The data was drawn from chief executives in the UK, US, Australia, Singapore and Germany, all running businesses with annual revenue above USD $500 million. It provides a snapshot of how large companies are judging resilience, cost trade-offs and technology risks during a period of continued pressure on global trade and sourcing networks.
Chris Hampden, Senior Vice President at Proxima, said: "Singapore's performance demonstrates how trade-based economies are reshaping supply chain strategy in response to sustained global volatility, so much so that resilience has become a proactive measure that is now firmly embedded into core operating models."
He added: "As Singapore businesses continue to face elevated levels of risk, they continue to place an increasing emphasis on supply chain resilience. Many are willing to pay a premium to guard against that risk, where supply chain continuity is fundamental to regional and global operations."