DBS launches initiative to build SME capabilities for resilient growth

[SINGAPORE] DBS launched an initiative on Wednesday (Aug 5) aimed at helping local small and medium-sized enterprises (SMEs) “strengthen their resilience” by addressing key operational challenges, such as working capital, digital payments transformation and artificial intelligence adoption.

“DBS for SMEs”, as it is called, will offer advisory, upskilling and financial solutions to help local SMEs navigate the increasingly complex business environment. It is part of a campaign of the same name that will be rolled out in conjunction with National Day this month.

This follows the Jul 29 announcement by the government of a S$900 million support package to help Singaporeans and businesses manage cost pressures amid the ongoing Middle East conflict.

DBS’ initiative taps the bank’s expertise, programmes and ecosystem partners to strengthen SMEs’ business foundations.

Focus on three areas

Support for SMEs will span cross-border payment and foreign-exchange solutions, advisory and capability-building, as well as financing solutions.

Through DBS, these firms can lock in exchange rates in advance without credit lines, enabling greater control over cross-border transactions and protecting companies’ cash flow and margins.

They can also leverage the bank’s reach in 190 countries and transact in 132 currencies to expand their business or source goods from across the world.

The lender will roll out onboarding workshops and one-on-one advisory sessions for SMEs that are new to DBS, as well as industry-focused sessions for those in sectors including healthcare and building and construction. 

Second-generation business owners can also expect programmes covering leadership succession, digital transformation and peer networking.

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Additionally, SMEs will be able to tap the bank’s Spark GenAI programme, which helps businesses to adopt and integrate generative AI into their operations; and ESG Ready Programme, which supports corporations in building internal capability and capacity in sustainability. 

DBS’ new initiative will also increase access to project loans to support SMEs undertaking capital-intensive projects, including those in building and construction.

In addition, eligible firms will have more access to working capital loans through the enhanced Enterprise Financing Scheme, which enables a higher 70 per cent government risk-share for the SME Working Capital Loan and Project Loan.

According to the local bank’s Business Pulse Check Survey, nearly half of SMEs here – about 45 per cent – are pursuing diversification through new products, services or income streams to reduce concentration risk and create new avenues for growth.

The survey also found that 43 per cent of local businesses cited keeping pace with technological developments as one of their biggest challenges.

Sharon Tan, DBS Singapore’s head of SME banking, said: “(The initiative) reflects our drive to convene the bank’s ecosystem of partners and capabilities to help small businesses navigate uncertainty with greater confidence and build enduring businesses for the future.”