Singaporean businesses with advanced digital capabilities are significantly outperforming their peers, especially those that have embraced artificial intelligence (AI) and integrated systems, according to a new report from HubSpot. The research highlights digital maturity—not just adoption—as the critical factor separating high-performing firms from those lagging behind.
Despite ongoing economic uncertainty, digitally mature companies in Singapore are reaping the benefits of their tech investments. The State of Business Growth in Singapore in 2025 report, commissioned by HubSpot and conducted by Lonergan Research, surveyed 544 local business leaders and found that companies with fully integrated digital systems are up to ten times more likely to outperform competitors.
Carol Fong, Head of Asia at HubSpot, said: “In today’s dynamic and highly competitive business environment, agility is everything. The difference between a thriving business and one merely keeping the lights on comes down to how quickly they can adapt, make decisions, and execute.”
While 91 per cent of surveyed businesses have embarked on some level of digitalisation, only 15 per cent have fully integrated systems. This integration gap is affecting their ability to scale, act on data, and quickly realise returns on digital investments. Notably, companies with integrated systems are three times more likely to see ROI within one month—compared to the national average of just over five months.
The research also found a strong link between digital maturity and effective AI implementation. While 83 per cent of businesses have adopted some form of AI, only 16 per cent are using it across multiple functions. Among early-stage AI adopters, only 6 per cent have fully integrated systems—suggesting that fragmented data flows are stalling progress.
“Tech stacks are growing, and can often become unnecessarily complex,” said Fong. “The gains of digital adoption are maximised when systems are integrated and data is accessible across teams.”
Real-World Impact
One example is Parcel Perform, a Singapore-based delivery experience platform. Initially hampered by siloed tools and inconsistent data, the company transformed its operations by integrating its systems, resulting in improved coordination and better marketing and sales performance.
Leadership buy-in has also emerged as a critical success factor. As firms become more digitally mature, internal roadblocks such as slow decision-making and leadership hesitancy begin to outweigh technological challenges. Nearly 40 per cent of fully digitalised firms cite sluggish leadership as a growth barrier.
“Technology adoption without leadership alignment doesn’t work,” said Fong. “The most successful digital-first companies today are likely those where an empowered leadership is driving urgency from the top.”
Economic Pressure Accelerating Need for Digital Agility
With nearly three-quarters of businesses becoming more cautious due to economic headwinds, the need for agile, responsive operations is growing. Companies ranked operational efficiency, AI and automation, and improved sales processes as top priorities for the year ahead.
However, talent remains a major constraint. Over half (53%) of respondents cited upskilling employees for digital transformation as the most critical resource for achieving growth.
Government Support Playing Crucial Role
Singapore’s digital transformation has been buoyed by strong government backing. Nearly 90 per cent of businesses credited government support—such as the Enterprise Development Grant and SkillsFuture—as instrumental in their tech adoption journey. However, smaller businesses reported slightly less benefit compared to larger firms.
Dato Seri Ashraf Bakar, Council Member of the Association of Trade and Commerce Singapore, said: “Smaller businesses often face a fundamental challenge: digitalisation may initially increase operating costs rather than providing immediate returns. More targeted support… would help these companies adeptly navigate the digital landscape.”
Outlook:
As digital tools become more accessible, the competitive edge will shift from adoption to execution. Businesses that act now to integrate systems, align leadership, and fully leverage AI are poised to pull ahead. Those that delay risk falling irreversibly behind.
Download the full report: The State of Business Growth in Singapore in 2025 from HubSpot.
