Number of loss-making SMEs tick up as restructuring pains intensify

Focus on SMEs in 2015 budget, SBF urges.

The number of loss-making small and medium enterprises (SMEs) ticked up by 4% based on the results of the Singapore Business Federation’s (SBF) National Business Survey 2014/2015.

The report also noted that most broad-based SMEs are grappling with declining profit margins and  that the number of home-grown SMEs that have achieved international status with a global footprint remain few.

The SBF’s SME Committee has urged the government to focus on a more holistic approach to SME development, including the setting up of a single SME authority to help small business cope with increasing restructuring pains.

The committee’s recommendations include reviewing Economic Strategies Committee (ESC) recommendations, providing more comprehensive and coordinated SME Data, and
establishing a single SME authority.

“SMEC also recommends that the Government introduce measures to help SMEs in domestic-oriented sectors that are still struggling with restructuring. We recommend that the Government take more proactive targeted measures to help these SMEs mitigate rising business costs, improve access to working capital, and thereby enabling these SMEs to successfully sustain their businesses even in the midst of these tough challenges,” said Lawrence Leow, Chairman of the SME Committee.