S & I Systems says it has learnt to focus on sustaining good relationships with its customers and maintaining a clear focus on its core information technology business.

The company believes it is important not to be distracted by external events.

This approach is endorsed by Ms Tan Siew Meng, head of commercial banking at HSBC Singapore.

'The lesson other small and medium-sized enterprises (SMEs) can learn from S & I is that they should focus on their core business.

'Many SMEs feel having a narrow focus makes them vulnerable and are tempted to venture into unfamiliar industries or business models to beef up turnover.

'If they wish to diversify to minimise risks, they are better advised to expand the customer base of their existing business, or to explore opportunities in new markets.

'Most important of all, SMEs should...critically review their strategic direction and strengthen their internal processes and systems in preparation for the upturn.'