DARK clouds may be gathering on the economic front but that has not significantly dented the confidence of small businesses in Singapore over their business prospects.
That is one key finding of the latest annual survey of Asian small and medium-sized enterprises (SMEs) conducted by UPS International.
It also found that SMEs across the region believe that strong intra-Asian trade will help compensate for an anticipated slowdown in the all-important United States economy.
The fourth UPS Asian Business Monitor survey was carried out in 12 markets across Asia, with 1,200 respondents, 100 of which were based in Singapore.
The percentage of Singapore SMEs which rated their growth prospects positively in the latest survey was a healthy 62 per cent - only slightly lower than the 66 per cent in last year's survey. Also, 59 per cent of respondents here saw themselves as competitive - again only slightly lower than the 66 per cent in the previous survey.
Across the region, optimism over growth prospects was slightly lower with 52 per cent of Asian SMEs believing that economic growth would persist, down 5 percentage points from the previous year.
SMEs across 11 markets - except for upbeat India - also expressed less confidence in their own competitiveness.
But they were confident that a rise in trade with economies in Europe, the Middle East, Africa and Canada, as well as continued strong growth within Asia, would compensate for the expected 12 per cent trade slump with the US.
UPS Singapore managing director Mary Yeo believes that local businesses will still be looking to expand - despite global challenges such as the expected US recession. 'The survey results showed that while Singapore SMEs are coping with these 'caution' factors, they have managed to look beyond the issues and explore ways to take their businesses through this period,' she said.
She noted that 71 per cent of local SMEs are looking to capitalise on growing intra-Asian trade, and believe in retaining a qualified workforce and embracing innovation in order to stand out from their competitors.
This article was first published in The Straits Times on May 28, 2008
