SMEs see lower sales and profit over the next six months

SINGAPORE - Small and medium-sized enterprises (SMEs) in Singapore are expecting their sales and profit to weaken over the next six months, resulting in a slight dip in the level of business confidence.

According to the SBF-DP SME Index for the second and third quarters of this year, the level of business confidence among SMEs dipped to 54.0 from 54.4 three months ago.

However, as a score above 50 indicates a positive sentiment, SMEs remain generally optimistic about their prospects for the next six months, said the Singapore Business Federation (SBF) and DP Information Group on Wednesday.

Mr Lincoln Teo, chief operating officer of DP Info said SMEs sentiments have been steady for some quarters, with no major event to generate either positive or negative sentiments.

"We are seeing a period of stability as SMEs build their businesses slowly. This environment is something most SME leaders welcome after the volatility of previous years."

"While SMEs toughen up to tide through the lull period during this post-festive season, anticipation of the Budget announcement might have also resulted in some adopting a wait-and-see approach," he added.