S'pore SMEs more upbeat about business sentiments in coming 6 months

S'pore SMEs more upbeat about business sentiments in coming 6 months
By Travis Teo | Posted: 29 April 2010 1524 hrs

	Photos 1 of 1 Office staff walk out for lunch break at the financial district in Singapore.

 
SINGAPORE: Singapore SMEs are more positive about business sentiments in the coming six months, with more companies working at higher capacities, which could lead to higher employment.

This is the conclusion of an inaugural quarterly index for small and medium size enterprises, compiled by DP Information Group and the Singapore Business Federation.

The SBF-DP SME Index tracks both the outlook and level of economic activity of Singapore SMEs each quarter.

The partners say the index provides a forward-looking and measurable gauge of business sentiment among Singapore SMEs for the coming six months.

The index surveyed owners and management of 3,000 SMEs, covering the commerce, manufacturing, services and transport & storage sectors, which contribute some 60 per cent of Singapore's GDP.

The index score for the first quarter of 2010 is 51, up from 48 in the last quarter of 2009.

DP Information says the increase reflects expectations that the economy is improving, with manufacturing companies registering a strong 8-point jump to 55 points, compared with the previous quarter.

But DP says the reading of 51 also suggests that business sentiment is one of "cautious optimism", where SMEs' level of sustainability remains stable and unchanged compared to previous quarter.

The index score is derived from qualitative data on actual financial performance of SMEs, combined with quantitative data which includes tracking companies' turnover and profit as well as credit ratings.

- CNA/jy

- wong chee tat :)