Almost half of SMEs dread shrinking profits in 2016

While 35% expect a drop in revenue.

Business sentiments in Singapore took a turn for the worse in 2016. Almost half or 44% of small and medium enterprises in the city-state (SMEs) expect that their profit margins will decline in 2016, according to the pre-budget survey by the Singapore Chinese Chamber of Commerce and Industry (SCCCI).

This higher compared with just 30% in 2015. Meanwhile, the percentage of firms which projected a decline in revenue this year more than doubled to 35%, compared to just 16.3% in 2015.

More businesses are also pessimistic regarding their overall business outlook. Over a third or 35.3% of firms said that they are downbeat on growth this year, compared to just 17% in 2015. Consequently, the percentage of firms who are upbeat on their growth prospects shrank to 38.9% from 41.3% last year.