Show me the money: Creation of SME bank tops local entrepreneurs’ wishlists

Domestic firms are struggling to find financing.

Small and medium enterprises (SMEs) urged the government to create an SME bank to address their need for additional finances, as firms continue with rising operational costs.

According to the Singapore Business Federation, one in two SMEs prefer an SME bank when it comes to their financing needs, 28% of the enterprises prefer bank loans with higher risk sharing by the Government.\

In addition, a fair percentage of survey respondents hope that banks will consider allocating a certain percentage of their loans to the SMEs.

When asked about financing needs, micro-enterprises highlighted new product development as one of the reasons that would warrant additional financing, followed by market expansion and increasing capacity as we head into 2015.

Mid to large-sized enterprises, however, are looking towards funding mostly to expand their business and increase capacity. Large enterprises were the only respondents that listed merger and acquisitions as one of the key reasons for financing.