---
title: "Manpower, rent and weak demand drag businesses’ profits"
type: "News"
locale: "zh-HK"
url: "https://longbridge.com/zh-HK/news/267763962.md"
description: "Singapore firms face profit decline due to rising manpower, rent costs, and weak demand. Only 4% of firms reported higher profitability, while 34% saw a decline. The Business Sentiment Index fell to 48.5, indicating subdued margin expectations for 2026. Cost pressures, demand uncertainty, and higher rental costs are key challenges. Sectors like hotels and retail have low profitability expectations, while banking and real estate are more optimistic. SMEs are more pessimistic than large firms. Companies are adopting cost-saving measures, price adjustments, and inventory management to cope."
datetime: "2025-11-28T03:35:35.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/267763962.md)
  - [en](https://longbridge.com/en/news/267763962.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/267763962.md)
---

> 支持的語言: [简体中文](https://longbridge.com/zh-CN/news/267763962.md) | [English](https://longbridge.com/en/news/267763962.md)


# Manpower, rent and weak demand drag businesses’ profits

**Rising costs push Singapore firms into profit decline**

Only 4% of firms surveyed by the Singapore Business Federation (SBF) reported higher profitability over the past 12 months, whilst 34% indicated a decline.

The aggregate profitability-expectations score fell 2.9 points to 48.5, measured by the Business Sentiment Index (BSI), signalling subdued margin expectations for 2026.

Cost pressures remain the primary challenge. About 63% of respondents cited rising manpower expenses, 44% pointed to demand uncertainty, and 40% reported higher rental costs as key constraints. Logistics and supply-chain costs also contributed to tighter margins.

The impact differs by sector. Hotels, restaurants, retail and wholesale trade reported the lowest profitability expectations, whilst banking, insurance and real estate firms recorded scores above 59. SMEs were generally more pessimistic than large firms, with 38% expecting deteriorating conditions compared with 34% of large firms, according to SBF's findings.

Firms are adjusting to these pressures through cost-saving measures, price adjustments and inventory management. Hiring intentions and wage growth plans have cooled, with only 36% of companies planning to expand headcount and 41% considering wage freezes over the next 12 months.

### 相關股票

- [KeyCorp (KEY.US)](https://longbridge.com/zh-HK/quote/KEY.US.md)
- [Costco Wholesale (COST.US)](https://longbridge.com/zh-HK/quote/COST.US.md)

## 相關資訊與研究

- [Costco EVP Caton Frates disposes of $0.7 million in common shares](https://longbridge.com/zh-HK/news/281429838.md)
- [Costco Wholesale Executive Vice President Sold Shares Worth Over $695K](https://longbridge.com/zh-HK/news/281430502.md)
- [NexPoint Sells Hotel Asset to Boost Liquidity](https://longbridge.com/zh-HK/news/281087363.md)
- [Ubs gates 400 mln euro property fund for up to 3 years- ft](https://longbridge.com/zh-HK/news/280664192.md)
- [TRWD Enters The Original Experiential Hospitality Market | TRWD Stock News](https://longbridge.com/zh-HK/news/280488428.md)