LOCAL small and medium-sized enterprises in Singapore are looking to invest in their businesses despite expectations of a weaker economic environment and financial performance in the next six months, a survey found.
Along with a neutral sentiment reading, the latest index reading shows lower expectations for turnover and for profitability . This is the first time in six quarters that profitability expectations has dropped below a reading of 5.0, indicating uncertainty. Similarly, the score for the retail/F&B sector increased 1.71 per cent to 5.35"potentially due to SMEs in the sector continuing to embrace technology innovation and digital solutions, such as e-payment methods, to improve customer experience and service".
Ho Meng Kit, chief executive of SBF, added: “The unresolved geoeconomic and geopolitical conflicts continue to weigh on the confidence of SMEs, but we urge our companies to keep their eyes focused on the longer term and persist with their business transformation efforts to sharpen quality and improve productivity. This will help them stay ahead of increasing global competition and keep pace with industry changes.