Small businesses in Singapore less affected by Covid-19 than Asia-Pac counterparts: CPA Australia

Singapore

SMALL businesses in Singapore were less affected by the negative impact of Covid-19 as compared to their Asia-Pacific counterparts - all thanks to effective govenment measures that supported businesses during the pandemic.

According to an annual survey on small businesses conducted by CPA Australia, only 55 per cent of Singaporean companies said the pandemic had affected their business adversely. This figure ranks the lowest as compared to other countries in the region such as Vietnam with 81 per cent, Indonesia with 68 per cent and Malaysia at 67 per cent.

Taking data from more than 4,000 small businesses across 11 countries in Asia-Pacific, the survey also found that government stimulus had helped Singaporean businesses maintain resilience in 2020.

Of the 307 respondents in Singapore, almost a third said that government support had a positive influence on their business in 2020. A further 27 per cent said they had sought government support as a major response to Covid-19.

"The data suggests that the combination of fiscal, monetary and other measures, mounted by the Singapore government in response to Covid-19, helped small businesses navigate the worst recession that the country has faced in over 50 years and cushioned businesses from the worst of the impact," said Max Loh, CPA Australia's Singapore divisional president.

Singapore businesses were also amongst the most optimistic on growth prospects in 2021.

Nearly 19 per cent had plans to increase innovative efforts by introducing new products, process or service, while many took the opportunity to digitalise their businesses.

More than eight in 10 Singaporean small businesses had used social media to promote their business last year, while 14.2 per cent more had adopted new digital payment methods such as Grabpay, Dash, Pay Lah in 2020, compared to 2019.

"The focus on technology is one factor that should support the recovery and long-term growth of Singapore's small businesses," said Mr Loh.

However, he noted that greater digitalisation would give rise to a higher risk of cyber-attacks, an issue he warned should be well-managed.

To tackle this, CPA Australia recommended that local small businesses should actively innovate, digitalise and focus on enhancing cyber-security, without forgetting other measures such as improving internal cashflow and seeking professional advise to improve recovery and growth prospects.

"Managing cyber risks will help small businesses protect their operations and customers' data and, importantly, build trust and reputation," said Mr Loh.