Tackling Sustainability as One Nation: How SMEs Can Lead and Thrive

Sustainability is no longer only a government ambition – it is a shared national journey. The Singapore Green Plan 2030 charts the way forward through five pillars: City in Nature, Energy Reset, Sustainable Living, Green Economy, and Resilient Future. Yet progress depends not just on policy or infrastructure, but on the collective actions of businesses, communities, and individuals.

For SMEs – which make up 99% of enterprises in Singapore – this national agenda presents both a responsibility and an opportunity. Many still view sustainability as a compliance exercise, something to be done to meet regulations or supply chain requirements. The reality is that sustainability is fast emerging as a source of competitive advantage, opening doors to new customers, cost efficiencies, and long-term resilience.

It is important to reflect on how far we have come and where we are going next as we approach this milestone.

Why Singapore’s Green Plan Matters for SMEs

Singapore’s Green Plan 2030 sets out a clear roadmap to advance the nation’s sustainability ambitions. Its five pillars set the conditions in which businesses, especially SMEs, must operate and adapt. Some guidelines include:

Energy Reset: Signals the shift to cleaner energy and more efficient resource use.
Sustainable Living: Reflects how consumer behaviour is changing, from waste reduction to greener lifestyles.
Green Economy: Highlights opportunities in fast-emerging sectors such as clean tech and sustainable finance.
City in Nature: Emphasises the integration of green spaces and biodiversity into urban planning, shaping how communities live and work.
Resilient Future: Focuses on preparing for climate risks and strengthening food, water, and supply chain security.

These pillars show that sustainability is not just a government agenda — it is reshaping market expectations, consumer demand, and industry opportunities. SMEs are not bystanders to this shift; they are central to making the Green Plan a reality.

Consumers as Anchors of Change

The push towards sustainability is not driven by policy alone. Consumers are reshaping business expectations, rewarding brands that show environmental responsibility and social impact.

Nearly 65% of Singapore consumers now rank sustainability practices as “important” or “very important” in their purchasing decisions, especially those under 40, according to Apeiron’s 2025 Singapore Consumer Behavior Analysis. Deloitte’s 2024 Gen Z and Millennial Survey found that almost 60% of Gen Zs and more than 75% of millennials in Singapore are willing to pay more for sustainable products or services.

Green values are now mainstream. In fact, Deloitte also reported that nearly 30% of Gen Zs and millennials in Singapore have cut ties with businesses whose products or services negatively impact the environment. For SMEs, it is crucial to understand that anticipating these shifts builds trust, customer loyalty, and new growth opportunities.

SMEs: Engines of Transformation, Facing Real Hurdles

SMEs employ over 70% of Singapore’s workforce and contribute more than half of the nation’s GDP. Their agility, creativity, and deep community ties make them uniquely positioned to drive meaningful change. Their contributions are essential to Singapore’s national vision, whether through reducing waste, adopting renewable energy, or innovating greener products.

But the hurdles are real. High upfront costs, limited expertise, and uncertainty around measurement often hold businesses back.

The UOB Business Outlook Study 2025 found that nearly one-third of companies surveyed lack the knowledge to identify and execute the right green initiatives. Another 33% fear that sustainability efforts will raise costs for customers and erode short-term profits.

The bigger risk, however, lies in inaction. Global supply chains are tightening sustainability requirements, and SMEs that delay may soon be excluded from contracts or partnerships. What feels like compliance today could quickly become a barrier to growth tomorrow.

The Power of Community and Partnerships

The good news is that SMEs do not have to navigate this journey alone. Transformation happens faster when businesses are supported by an ecosystem of peers, mentors, and partners. Community provides knowledge and confidence, helping SMEs move from intent to action.

UOB FinLab has seen this first-hand. Since 2015, we have built a network of more than 33,000 SMEs across Singapore and the region. Most recently, SkillsFuture Singapore appointed UOB as its latest SkillsFuture Queen Bee, with UOB FinLab serving as a strategic community enabler. We launched the SME Elevate Programme as part of the appointment. It is a comprehensive initiative to strengthen the skills and business capabilities of SMEs across all sectors. This reflects our commitment to build an ecosystem of learning, collaboration, and transformation.

The programme provides training courses, targeted skills advisory, mentorship, financial literacy, and networking opportunities. One of the key initiatives is the Sustainability Innovation Programme (SIP). SIP equips SMEs with the tools, knowledge, and networks to embed sustainability into their business models. Through curated workshops, expert guidance, and peer support, SIP helps businesses translate green ambitions into meaningful results. For many, this also means unlocking long-term cost savings from lower utility bills through energy efficiency, to reduced expenses through waste minimisation and smarter use of resources.

SMEs can also tap into the Mentorship Support Grant for guided advisory from experienced mentors and domain experts, ensuring they have practical, hands-on support to be future-ready.

Beyond Compliance: Growth, Competitiveness, Resilience

Sustainability becomes a driver of growth when embraced strategically. It enables SMEs to improve efficiency, reduce costs, strengthen brand reputation, access green financing, and expand into new markets. Most importantly, it builds resilience, ensuring businesses can withstand future disruptions while staying aligned with evolving consumer and regulatory demands.

As Singapore tackles sustainability as one nation, SMEs are not just participants; they are key drivers of progress.

Join the UOB FinLab community at the upcoming Sustainability Innovation Programme (SIP) and take the next step in building a greener, more resilient Singapore.

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