Singapore companies can withstand supply chain disruptions longer than the US or UK, survey says

SINGAPORE: Singapore businesses are better positioned than their counterparts in several major economies to withstand a significant supply chain disruption, according to Proxima’s 2026 Global Supply Chain Resilience Outlook.

The survey found that nearly a quarter, or 23 per cent, of businesses in Singapore believe they would be able to continue operating for between four and six months if faced with a major supply chain shock. That was the highest proportion among the markets surveyed, ahead of the United States at 18 per cent, Germany at 10 per cent, the United Kingdom at 8 per cent and Australia at 5 per cent.

The findings stand in contrast to the global picture, where around half of chief executives said their organisations would struggle to maintain normal operations for longer than three weeks following a major disruption to their supply chains.

The report also highlighted growing concern over technology-related risks, particularly those linked to artificial intelligence (AI).

Among Singapore respondents, 22 per cent identified AI as the biggest financial threat to their supply chains. At the same time, companies appear to be taking steps to prepare for such risks, with 93 per cent saying they have documented and tested plans in place to respond to AI-related disruptions.

Beyond risk management, businesses are also increasingly using AI to improve the efficiency of their supply chain operations. Half of the CEOs surveyed said their companies use AI for cost modelling, while 48 per cent said the technology is being used to automate procurement processes.

The survey also examined how businesses are balancing resilience against rising costs.

It found that 44 per cent of Singapore CEOs would be willing to absorb supplier cost increases of between 11 per cent and 20 per cent if doing so would make their supply chains more resilient.

To manage the additional expense, almost four in 10 respondents said they would rely on internal cost-saving measures. Meanwhile, 30 per cent said they would pass the higher costs on to customers, the lowest proportion among all the countries included in the study.

Proxima’s 2026 Global Supply Chain Resilience Outlook surveyed 515 chief executives from companies generating more than US$500 million (S$646.40 million) in annual revenue across Singapore, Australia, Germany, the United Kingdom and the United States.