Singapore SMEs less optimistic about prospects: Index

Singapore SMEs less optimistic about prospects: Index

The latest index compiled by the Singapore Business Federation and DP Information Group measuring SME sentiments about business prospects in the coming six months showed an overall reading of 54.4 points - down from 55.5 in the previous survey carried out three months earlier.

SINGAPORE: Small and medium enterprises (SMEs) in Singapore are less optimistic about prospects compared to three months ago, a quarterly index compiled by the Singapore Business Federation (SBF) and DP Information Group showed.

The latest SBF-DP SME Index, which was released on Monday (29 Dec), had an overall reading of 54.4 points - down from 55.5 in the previous survey carried out three months earlier.

The index, which measures SME sentiments about business prospects in the coming six months, was based on some 3,600 interviews with SME owners and managers, as well as the financial performance of SMEs.

The latest reading is also below the 54.9 reading in the second quarter of 2014, although it remains above the 50 point level that indicates a positive outlook.

"The fall in oil prices, slowdown of the Chinese economy and market volatility reflect challenging times ahead for SMEs, as well as opportunities for some," SBF and DP Info said in a statement.

For instance, SMEs in the transport/storage sector are more bullish about profits in the next six months due to the sharp drop in oil prices. But construction and engineering SMEs were less optimistic about both turnover and profitability, in view of slowing real estate activities and weaker property prices.

Singapore's gross domestic product (GDP) is likely to expand by 3.1 per cent in 2015, according to a recent Monetary Authority of Singapore (MAS) survey of private sector economists - slightly up from an expected growth of 3.0 per cent this year.

- CNA/xy

- wong chee tat :)