SBF-Experian SME Index records historic low at 46.3

The ongoing pandemic situation has slowed economic activity.

The business sentiments of Singapore’s small and medium enterprises (SMEs) for the next six months dropped to a historic low amidst ongoing market uncertainty, according to an SME business index.

The SBF-Experian SME Index for Q4 2020 to Q1 2021F registered an overall reading of 46.3, its lowest figure since the index’s establishment in 2009, according to a joint release by the Singapore Business Federation (SBF) and Experian.

The index measures the business sentiments of small and medium-sized enterprises (SMEs) in Singapore for the next six months, comprising SMEs’ expectations in turnover, profitability, business expansion, capital investment, hiring, capacity utilisation, and access to financing.

The index surveyed more than 2,100 SMEs across the commerce/trading, construction/engineering, manufacturing, retail/F&B, business services, and transport/storage conducted 13 July through 21 August.

Out of all sectors surveyed, the construction/engineering sector reported the steepest fall in sentiments, marking a 6.1% contraction to 46.4. This was followed by commerce/trading, with sentiments contracting  5% 45.6. business services logged a 4.1% decrease to 47.3.

Meanwhile, retail/F&B posted a 3.7% fall to 44.6, closely followed by manufacturing, which posted a 3.5% fall to 46.9. Also, transport/storage saw a 2.7% decline to 46.7.

This historic low is due to the uncertainties caused by the ongoing COVID-19 pandemic situation, SBF-Experian said in a press release.