Slow GDP growth and weak global trade are among the challenges that plague SMEs.
The combined profit of top 1000 small and medium enterprises (SMEs) in Singapore decreased by 17.1% year-on-year (yoy) to $2.9b this year, according to a report by Experian’s arm DP Information Group (DP Info) and EY.
“Many SMEs struggled against factors beyond their control including slow GDP growth, weak global trade and the need to invest in technology and productivity improvements in response to manpower restrictions,” James Gothard, general manager for Credit Services & Strategy of Experian in Southeast Asia, explained in a press release.
The report revealed that transport/storage SMEs fared the worst with a 53.8% yoy drop on profits brought about by 24.6% yoy decrease in turnover. The commerce-wholesale sector’s profit and turnover also fell by 22.7% yoy and 17.8% yoy, respectively.
Meanwhile, the manufacturing (27% yoy), construction (14.3% yoy), hospitality/food & beverage (6.7% yoy), and commerce/retail (3.9% yoy) are the only sectors that recorded growth.
Furthermore, top 1000 companies in Singapore enjoyed a 10.5% profit growth with $182.8b.
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