Business sentiment strong among Singapore SMEs
Business sentiment among SMEs in Singapore is at its highest since the pandemic began, with firms looking to seize new opportunities, according to a survey.
The sentiment index for Q2’21 and Q3’21 hit 49.9, rising from an index of 48.2 in the previous quarter, marking the highest reading since the pandemic began in Q12020.
The survey, by the Singapore Business Federation (SBF), polled over 2,100 local SMEs and was conducted between January 18 and February 26.
A reading of 50 implies that businesses are neutral regarding their prospects ahead, while an index above 50 means that firms are positive for the next six months, with plans for expansion. A reading below 50 meanwhile signals that businesses expect their activities to contract.
“The gradual reopening of our economy, the easing of business restrictions, and the wide range of Budget measures announced earlier this year have given a much needed boost to the confidence of our SMEs,” said SBF chief executive Lam Yi Young.
Businesses in sectors like engineering and construction saw the biggest leap in outlook, out of five other sectors polled: commerce and trading; manufacturing; retail and food and beverage; business services; and transport and storage.
“This is likely due to the easing of COVID-19 restrictions, which has enabled the resumption of business activities on a broader scale,” commented SBF.