SMALL and medium enterprises (SMEs) have increased their contribution to Singapore's economy to 49 per cent in 2007 from 46 per cent in 2003, according to a report released by the Singapore Department of Statistics (SDS) on Friday.

They also account for about half of Singapore's GDP.

The report on Profile of Enterprises in Singapore also revealed that 99 per cent of the 16,000 enterprises in 2007 were SMEs, employing about six out of every 10 workers and generated almost half of the total enterprises' value-added.

Non-SMEs, athough only making up less then one per cent of all enterprises in the economy, provided jobs for the remaining 40 per cent of the enterprises' workforce and contributed slightly more than half of the enterprises' value-added.

SMEs mainly engaged in wholesale and retail trade (32 per cent), real estate and business services (19 per cent) and community, social and personal services (14 per cent).

Within the group of locally-owned enterprises, wholesalers and retailers formed the largest number at 31 per cent.

As for the majority foreign-owned enterprises, wholesale and retail trade also dominated, followed by real estate and businesses services, and financial services.

The report said all enterprises, SMEs or non-SMEs, have played and will continue to play an important role in various aspects of Singapore's economy.