SMALL and medium enterprises (SMEs) are a little more gloomy about near-term trade prospects compared with their peers across the region, a new survey has found.

The findings form part of the HSBC Trade Confidence Index, the first survey of its kind which tracks the sentiment and expectations of SMEs over the next three months.

The survey was conducted in April and May and asked 2,100 SMEs, including importers, exporters and traders, across seven markets about their near-term outlook on trade volume, risks and trade finance among others.

The results were used to calculate an index ranging from zero - the lowest confidence level - to 200. The 100 level represents a neutral view.

Singapore scored 99.9 points - just below neutral. Hong Kong was the most bearish, with a score of 93.1, while UAE, India and China were among the most optimistic with scores well above 110.

Sluggish demand and the currency fluctuations were cited by Singapore firms as the main barriers to trade growth in the near term.

The dire state of the global economy has placed risk management high on the agenda of these SMEs, said Ms Tan Siew Meng, HSBC's head of commercial banking here.

SMEs in Singapore told pollsters they were also concerned about risks like buyers not paying up and suppliers failing to deliver goods.

Among the more popular strategies adopted by SMEs to mitigate counter-party risks includes turning to traditional trade finance instruments as well as requesting advance payment from buyers before delivering goods.

Ms Tan said traditional trade finance solutions are 'making a comeback due to the increased security they provide to buyers and sellers'.