SMALL and medium-sized enterprises (SMEs) in Singapore have a positive business outlook for the coming 12 months, a recent survey has found. This came as a result of strong market conditions due to high consumer spending and positive impact of the integrated resorts and Formula One racing event, said Kadence Asia Pacific - a business intelligence firm.
The firm polled 300 SMEs and found that 46 per cent expect improved business prospects in 2008 compared with last year.
Only 14 per cent of the firms had concerns about economic opportunities for their businesses in the year ahead, with the rest either expecting similar growth as in 2007, or did not make a prediction.
It was noted, however, that respondents surveyed in the last week of January were more neutral about business prospects, which coincided with increased levels of media coverage regarding adverse economic conditions in the US.
Among the larger SMEs business confidence was particularly strong, especially within the service sector. These include vendors of business services and consultancy, education & training as well as operators in the construction and logistics industries.
Optimism was also higher in newer businesses which have been operating for less than five years, compared with the more established SMEs, Kadence said.
Kadence said this highlights the importance of facilitating and encouraging new enterprises to drive overall market confidence.
Regional managing director Piers Lee said: 'While SMEs generally continue to forecast good economic conditions in Singapore, growing concerns have been voiced regarding rising prices and increased competition. The negative impact of an uncertain US economy also caused unease among respondents in the latter stages of the survey.'
'It appears that some SMEs have made plans to protect themselves from potential threats from the US slowdown by diversifying their markets. . . increasing their trade with Asia's high growth markets such as China and India,' Mr Lee added.
The respondents were also given four options and asked to pick the area in which they would most like business assistance.
Thirty-five per cent cited government grants and subsidised loans to aid start-up organisations, while 20 per cent felt that the promotion of Singapore as a business hub takes priority over the rest. Some 19 per cent cited increased financing options from banks, while 17 per cent suggested that employment laws should be relaxed to allow more foreign labour to enter the market.
