Rising costs, manpower shortages top list of concerns for Singapore SMEs: SCCCI survey
Many also cite the need for deeper internationalisation, technological adoption
RISING business costs, manpower shortages and the need for transformation ranked as the top concerns for Singapore’s small and medium-sized enterprises (SMEs), based on the latest annual survey by the Singapore Chinese Chamber of Commerce and Industry (SCCCI).
“Sentiment among respondents about this year’s business outlook is mixed,” said SCCCI president Kho Choon Keng, as he previewed key survey findings ahead of its full release later this year.
Rising costs are the biggest concern in 2024, cited by 73 per cent of businesses, followed by manpower availability (54 per cent) and business transformation (37 per cent). The top two concerns remain the same as last year, but concerns over uncertain economic and political conditions abroad – which ranked among the top three in 2023 – did not make the list this year.
While 77 per cent of respondents expect to make a profit this year, nearly half anticipate lower profits compared to 2023.
Kho noted that despite recognising the need for transformation, many SMEs face internal challenges such as a lack of expertise, uncertainty over outcomes and resistance from staff.
He was speaking at the opening of the 27th annual SME Infocomm Commerce Conference on Wednesday (Oct 9), held at Suntec Singapore Convention and Exhibition Centre. Minister for Manpower Tan See Leng was the guest of honour.
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In his speech, Dr Tan acknowledged the mounting pressures on SMEs in today’s volatile global landscape, but urged businesses to see these challenges as opportunities.
“We are often not spared from external trends,” he said, pointing to rising geopolitical tensions, disruptive technologies and shifting supply chains as key issues for SMEs.
However, he stressed that the importance of leveraging South-east Asia’s growth potential – with its young population and strategic location – to diversify supply chains and expand market reach.
He also underscored the urgency for businesses to embrace sustainability, saying: “Sustainability reporting is also fast becoming a critical capability that large corporations look out for in supplier selection.”
On Wednesday, both speakers also emphasised the need for stronger collaboration between trade associations, the government and the private sector.
SCCCI’s annual survey showed that 61 per cent of respondents applied for government support schemes, Kho said, with digitalisation, manpower retention and cost reduction being the areas where assistance was most useful.
On his part, Dr Tan commended SCCCI for its ongoing efforts to support businesses, particularly through initiatives such as the Trade Association Committee Transformation Centre.
Launched in August, the centre aims to boost the capabilities of local trade associations, helping them better serve their members in areas such as internationalisation, sustainability and digitalisation.
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