Seeking out the bright spots for Singapore SMEs

DESPITE Singapore experiencing relatively encouraging domestic recovery, buffered by government efforts to flatten the curve, SMEs are anticipating a longer path to recovery compared to their global peers. Although HSBC's latest Navigator survey revealed that two-thirds of SMEs are adapting to the new environment, Singapore's open and trade-dependent economy means they're more pessimistic about 2021 than businesses globally. That said, they are proving more agile in adapting to change.

To continue operations in this new normal, businesses have had to adapt by going digital and pushing to fortify supply chains. However, Singapore SMEs are still cautious of what is to come, citing a resurgence of Covid-19 as the biggest threat to their growth or recovery, followed by a decrease in demand, conservative spending and supply-chain disruption.

To overcome these challenges, businesses are looking to cut costs and improve cashflow management, build digital into their supply chains for future resilience, and are becoming more entrepreneurial through improved financial management, innovation and customer acquisition.