Small transport firms most downbeat about growth prospects in Q4

Large players are eating up their market share.

Small and mid-sized transport and storage firms are the most downbeat about their growth prospects in Q$ to early 2015, a survey by the Singapore Business Federation revealed today.

The SBF’s survey showed that transport and storage SMEs reported dampened growth expectations this quarter, from 56.6% in Q3 to 55% in Q4.

“Despite expanding shipment numbers reported, the small and mid-sized players are facing increased competition by their larger compatriots where clients are demanding broader market reach, more sophisticated solutions and cost competitiveness,” noted the SBF.

However, the Overall Index for this quarter rose by 1.1 per cent to 55.5, led by positive expectations from Business Services and Construction/Engineering industries. 

SMEs in the Business Services and Construction/Engineering sectors expect business expansion, fuelled by higher turnover and profit expectations. In particular, there is interest in regional expansion plans in markets such as Indonesia, with renewed confidence in the newly elected President. 

According to Chen Yew Nah, managing director of DP Information Group. “The moderate confidence led by Business Services and Construction/Engineering sectors are the first positive growth prospects to 2015. We believe that the modest growth was due to domestic constraints, and the weaker export sectors which affected Manufacturing, Commerce/Tradingand Transport/Logistics. Otherwise, we had anticipated better growth expectations across the board.”