Top Digitalisation and Sustainability Trends in 2025

UOB FinLab believes that SMEs in ASEAN will continue to be a driver of the region’s economic growth in 2025 and we remain committed to ensuring they are well equipped to thrive in an ever-changing world. To achieve this, we have focused our efforts on two key pillars that are crucial for SMEs to unlock business growth and operational excellence – Digitalisation and Sustainability.

Digitalisation offers a range of opportunities for SMEs to improve operational performance, spur innovation, enhance productivity and compete on a more even footing with larger firms. Adopting sustainable practices enables SMEs to not only reduce environmental impact but also enhance operational efficiency, cut costs, attract talent and unlock new growth opportunities.

However, digitalisation and sustainability initiatives are not a ‘one-off’ activity. It takes ongoing effort to ensure ones’ business is up to date on the latest technologies, best practices and even how to navigate policy changes.

We are on-the-pulse when it comes to the latest digitalisation and sustainability activities and we are constantly tailoring our programmes to ensure relevance and impact. We would like to take this opportunity to share our outlook on the top digitalisation and sustainable trends that will impact 2025.

Top Digitalisation Trend: Evolving AI

The application for AI technologies will continue to evolve and take centre stage in 2025. There are talks of a new emerging AI paradigm: Autonomous AI agents, also known as Agentic AI.

Autonomous AI agents can make independent decisions, work on their own and adapt to their environment without human intervention. These virtual assistants can think for themselves and independently work, putting them well ahead of Gen-AI based chatbots, which often require a human to tell them what to do at every step.

This could impact various industries where decision-makers must make rapid decisions based on constantly evolving data such as:

Healthcare: Agents can potentially boost medical diagnostics and treatment by continuously monitoring patient conditions by detecting abnormalities and intervening.
Logistics: AI agents can potentially optimise production lines and anticipate disruptions
Autonomous Vehicles: AI agents have the potential to reshape the transportation landscape by improving safety, reducing congestion and lowering emissions

This represents a significant shift from Gen-AI and marks the start of a new potential breakthrough. Many Autonomous AI agents have made their debut in various software companies in late 2024 with broader availability coming to Singapore this year.

With any new technology, there are many ethical and societal concerns that need to be addressed such as identifying responsibility when agents make independent decisions or its potential to remove human jobs.

As novel technologies continue to develop, it is crucial for us to monitor and understand its potential. This will ensure UOB FinLab and our ecosystem are at the forefront of breaking technological advancements and understand the best practices to thrive in ever-changing developments.

Top Sustainability Trend: Ongoing Pressure to Adopt Sustainability Practices

2025 will see the start of a key sustainability reporting requirement beginning with listed companies. All listed companies in Singapore need to report their Scope 1 and Scope 2 greenhouse gas (GHG) emissions based on local reporting standards that are aligned with the International Sustainability Standards Board, a global accounting standards body.

The new requirement will also apply to large non-listed companies, defined as those with annual revenues of at least S$1 billion and total assets of at least S$500 million, starting from FY2027.

Enhanced sustainability reporting will impact the entire supply chain. Large corporations may want to only work with vendors, often SMEs, that operate in a sustainable manner to ensure a green supply chain.

SMEs see the greater importance of sustainability but often struggle with how and where to begin. UOB’s Business (SME and Large Enterprises) Outlook Study 2024 showed that 87 per cent of ASEAN companies view sustainability as important to their business, but only 44 per cent have adopted green practices. SMEs face significant barriers to implementation such as increased costs to customers, the impact it will have on their profits and the lack of proper infrastructure for renewable energy.

UOB FinLab understands the challenges SMEs face when transforming to a green business. We are constantly updated with the latest industry developments and benchmarks. We take this knowledge and tailor our programmes so that SMEs have access to the gold standards when implementing sustainability initiatives that are aligned with wider industry benchmarks.

The Importance of a Professional Network

We believe that collaboration is key to adapting to ever-changing digitalisation and sustainability developments. Through collective action, SMEs have the ability to learn the best industry practices to stay ahead of the competition and accelerate their growth.

This is why we have developed a strong professional network of 27,000 professionals that include mentors, industry leaders, and solution providers. By tapping onto our network, SMEs and businesses of all sizes will open themselves up to new touchpoints for business opportunities and hone their industry knowledge.

UOB FinLab’s programmes and initiatives bring our vast ecosystem together to spark innovation and business growth through digitalisation and sustainability. Our programmes are designed to forge long-lasting relationships beyond the duration of the programme and enable collaborations between participants and the UOB FinLab ecosystem.

We have many exciting initiatives in the pipeline for 2025 and we can’t wait to share them with you. Stay up to date by following us on LinkedIn and subscribe to our newsletter.