Lalamove has revealed from its latest SME survey that high logistics costs remain one of the high concerns for local businesses. More than 43% of surveyed SMEs indicated that rising logistics expenses are top of mind for the coming year.
The survey also revealed that expectations for delivery volumes in 2026 are modest. 36% of SMEs believe their delivery volume will remain unchanged next year, while 27% expect a slight increase of up to 20%.
Only 10% anticipate a stronger rise of more than 20%, reflecting a generally cautious outlook on business growth.
Conducted between September and November with more than 900 SME respondents, the survey found mixed views on Singapore’s overall business environment in the year ahead.
28% of SMEs said they feel cautious, 25% expressed uncertainty or pessimism, 27% reported feeling optimistic about the outlook, while the remaining 20% indicated no change in sentiment.
Affordable pricing and safe delivery are top partnership priorities for SMEs
As operating costs continue to rise across sectors, SMEs are becoming increasingly selective when choosing logistics partners. When respondents were asked about the most important
factors in selecting an on-demand delivery platform, 55% named affordable pricing as their top priority. Another 50% said that safe delivery with no damage is the most important consideration. This was followed by 38% who identified delivery speed as their top deciding factor.
These findings suggest that SMEs are prioritising practical and cost-efficient delivery options, reflecting the broader economic sentiment of cautious spending and the need to manage business expenses more tightly.
SMEs grapple with cost pressures and higher customer expectations
The survey highlighted several pressing challenges that SMEs expect to face in the next 12 months. 43% of respondents pointed to high logistics costs, 42% cited rising rental expenses, and 38% expressed concern over lower consumer spending.
At the same time, SMEs are also experiencing greater pressure to meet rising customer expectations. Over 50% of the respondents shared that their customers are now demanding faster delivery compared to last year, adding another layer of operational pressure on businesses.
These combined challenges underscore the need for logistics solutions that offer affordability, reliability and speed, three factors that SMEs increasingly see as essential in their day-to-day operations.
Diverse delivery modes needed to serve market demands
When asked about the types of vehicles they typically rely on for deliveries, SMEs showed a balanced mix of preferences. 36% said they frequently use motorcycles, while 32% reported using cars.
Another 32% rely on vans and lorries. This distribution highlights the diverse nature of SME demand, showing that Singapore businesses depend on delivery solutions ranging from small item transport to larger, bulkier goods fulfillment.
