16-4-2024 (SINGAPORE) Small and medium-sized enterprises (SMEs) in Singapore have sustained a contracting trend for the fifth consecutive quarter, as revealed by a report published by the Oversea-Chinese Banking Corporation (OCBC) on Tuesday.
The latest SME index released by the bank stood at 49.7 in the first quarter of this year, showing a marginal increase of 0.2 from the previous quarter but remaining in contractionary territory.
Derived from transactional data encompassing over 100,000 OCBC SME clients in Singapore, the SME index serves as a gauge of business health. A reading above 50 indicates improvement, while a score below 50 indicates a decline.
OCBC highlighted that SME collections and payments experienced modest year-on-year growth of 1.4 percent and 1.9 percent, respectively, amid volatile disinflation trends and heightened cost pressures.
According to OCBC’s projections, the SME index is anticipated to stabilize before gradually trending upwards in the latter half of this year.
Results from the OCBC SME Business Outlook poll conducted in the first quarter revealed that 51 percent of the 1,200 surveyed SME business owners anticipated improved performance over the coming six months.
The bank attributed this positive outlook to the resurgence in global electronics demand and favorable prospects for ASEAN economies, particularly benefiting Singapore’s outward-oriented sectors.
