SMEs expect more help from Government in upcoming Budget
About four in 10 of the companies said they face challenges hiring the right people, while 27 per cent said retaining workers is an issue.
SINGAPORE — Four in five small- and medium-sized enterprises (SMEs) in Singapore expect more incentives for businesses in Monday’s (Feb 18) Budget announcement, according to DBS Bank’s dipstick poll of 150 companies.
This is because challenges such as manpower issues and high operating costs continue to plague SMEs, the bank said on Friday.
THE CHALLENGES
A majority of SMEs (26.5 per cent) are worried about manpower issues. Other areas of concern include high operating costs and challenges in growing revenue.
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Word SearchSpot as many words as you canAbout four in 10 of the companies said they face challenges hiring the right people, while 27 per cent said retaining workers is an issue.
A large majority of SMEs will not be prioritising overseas expansion, with 55 per cent citing the lack of market knowledge and understanding of regulatory requirements as their main challenges. Another quarter said that they could not find the right partner to collaborate with.
ON THE BRIGHT SIDE...
Four in five SMEs said that their employees are equipped with the “right skills”, with nine in 10 saying that they have access to affordable training programmes due to SkillsFuture.
Around 30 per cent of SMEs said that their priority will be to maintain or grow market share, while another 29 per cent are looking to grow their revenue.
Seven in 10 SMEs are turning to Government agencies for advice, with 27 per cent seeking guidance on partnerships and business grants.
WHY DOES THIS MATTER?
SMEs contribute to nearly half of Singapore’s Gross Domestic Product and SMEs are responsible for nearly 70 per cent of employment in Singapore, according to a 2018 report by the Department of Statistics.
Senior Minister of Trade and Industry Koh Poh Koon has also said that more initiatives to encourage SMEs to send workers for training will be revealed at the ministry’s Committee of Supply debate next month.
