SMEs keen on transformation amid challenging times

Singapore

SINGAPORE's small-and-medium enterprises (SMEs) are looking to invest in their businesses despite expectations that the next six months will bring a weaker economic environment and dent financial performance, according to a survey.

The SBF-DP SME Index has edged down from 50.7 to 50.4 this quarter - declining for the fourth consecutive quarter - in a nod to softening business sentiment and increased wariness among SMEs. The index - a joint initiative of the Singapore Business Federation (SBF) and DP Information Group - measures the business sentiment of SMEs for April to September, surveying over 3,600 SMEs between Jan 14 and March 1.

Along with a neutral sentiment reading, the latest index shows lower expectations for turnover (from 5.13 to 5.03) and for profitability (from 5.07 to 4.94). This is the first time in six quarters that profitability expectations has dropp…