Large Singapore firms face higher insurance cost exposure

42% report heavier security-related expense pressure amidst the Middle East conflict.

Large Singaporean firms said they feel they have a higher exposure to insurance and security-related costs (42%), compared to SMEs (17%), amidst the ongoing Middle East conflict.

Two in three Singaporean companies have been affected by the Middle East conflict, according to a poll done by the Singapore Business Federation (SBF).

Whilst large companies are utilising sophisticated risk management tools like fuel and currency hedging to manage volatility, SMEs are struggling to cope. 

Only 36% of SMEs express confidence in managing the ongoing disruption, compared to 78% of larger firms. 

Overall, 54% of all businesses fear for their long-term viability if current conditions persist beyond the next six months.

The conflict has driven up energy prices for 66% of businesses and shipping costs for 54%.

In response, firms are calling for targeted government support, specifically regarding working capital and logistics expenses.