Survey shows more Singapore SMEs investing on productivity improvements

To combat rising labour cost.

According to the latest Singapore Business Federation (SBF)-DF Info Group Index, Singapore SMEs are putting a lot of attention on improving their productivity as a response to rising labour costs associated with the tighter restrictions on foreign workers.

SBF CEO, Mr Ho Meng Kit said: “The findings of the July- December 2013 survey indicates that an increasing number of SMEs are focusing their attention on productivity improvements as they adjust to higher labour costs."

"The pickup in investment and business expansion indicators are signs that SMEs are making a concerted effort to drive growth by investing in better processes and equipment rather than through manpower increase. SMEs are also increasingly looking to emerging markets in Asia and further away such as Africa to drive growth," he added.