Overall business sentiment climbs to 80% in 2024: report

Medium enterprises were the most positive about their business sentiment.

Overall business sentiment for 2024 improved 5% year-on-year (YoY) to 80% of businesses saying it was somewhat or very positive, UOB reported.

By sector, the real estate/hospitality and construction and infrastructure sectors expressed the highest positive sentiment at 88%.

“More businesses continue to perceive the current business environment in Singapore to be very positive, significantly higher compared with previous years,” UOB said.

According to UOB, medium enterprises are more positive about their business sentiment, with 87% expressing somewhat or very positive perceptions, compared to small enterprises (77%) and large enterprises (75%).

Meanwhile, high inflation, rising operational costs, and manpower costs are key macro factors impacting around 3 in 10 businesses in 2024.

However, businesses impacted by high inflation dropped from 37% to 31% in 2023. The professional and business services sectors were the most affected at 44% and 40%, respectively.

In addition, UOB found that business operations continue to be impacted by an increase in operating expenses (37%) and difficulty in retaining customers (23%).

Sectors most impacted by the increased operating expenses were business services (44%) and construction and infrastructure (43%). Meanwhile, 54% of large enterprises and 35% of medium enterprises were affected.

In January 2025, UOB surveyed 900 small, medium, and large businesses across all key sectors in Singapore.