In the Singapore Business Federation (SBF) National Business Survey, SMEs said lowering business costs should be addressed in the February 17 Budget.
Conducted in November 2011, the findings indicate that the business community's sentiments on the economic and business environment in 2012 have dampened, with respondents being less confident about economic growth and profitability.
A grim economic outlook this year, affected by a slowing external demand from European and US markets, makes SMEs particularly vulnernable.
Business Outlook for 2012
Of the 973 respondents:
- 50% expect their business to be profitable in 2012 (vs 69% in 2011)
- 45% remain optimistic about Singapore's economic growth (vs 80% in 2011)
- 11% project a possible decrease in their sales turnover (vs 7% in 2011)
With 31% of companies expecting to be negatively impacted by the existing economic instability in the Eurozone and US, businesses are adopting new strategies to remain buoyant:
- 78% seek to increase cost efficiency / productivity (vs 61% in 2011)
- 58% will look into offering new products / services (vs 40% in 2011)
- 50% intend to source for cheaper raw materials / final products (vs 13% in 2011)
Budget 2012 Wishlist
- 76% suggest a reduction of business costs
- 40% need support in manpower related costs and issues
- 22% seek investment in training and development
- 20% ask for a lowering of foreign worker levy
- 15% ask for a lowering of taxes
Read more about key findings of the SBF National Business Survey 2011/12 .
