[SINGAPORE] Revenue expectations among businesses have diverged, with firms becoming more decisive in their optimistic or pessimistic forecasts, a Singapore Chinese Chamber of Commerce and Industry (SCCCI) survey found on Wednesday (Sep 3).
The survey aims to offer useful context and ideas for enterprises to strategise and plan for their expansion and road map, said SCCCI president Kho Choon Keng.
A total of 711 businesses were polled over a period of 12 weeks between June and August. Of the respondents, the majority, at 93 per cent, were small and medium-sized enterprises. The remaining 7 per cent were large organisations.
The survey showed mixed sentiments among businesses. While 39 per cent of them expect revenue growth this year, compared with 33.4 per cent last year, those expecting declines also rose to 32.7 per cent, from 29.1 per cent.
Meanwhile, those expecting no change fell to 28.3 per cent, from 37.5 per cent the previous year.
The cautious mood is reflected in firms’ broader sentiment: 36.7 per cent described their outlook as neutral, 33.4 per cent as pessimistic, and 24.3 per cent as optimistic.
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Despite this wariness, three-quarters of firms still expect profits this year, though more than half of these anticipate lower earnings compared with last year.
Firms were also surveyed on their top business concerns. Rising costs remained the key concern for businesses, though fewer cited this as a key issue.
The top three business concerns were: rising business costs (58.5 per cent); availability of suitable manpower (44.7 per cent); and transforming business and pivoting to growth areas (27 per cent).
Transformation and internationalisation
While businesses recognise the importance of transformation, they continue to face the same key challenges as last year, said Kho. The top three barriers remained unchanged: lack of internal expertise and resources (40.9 per cent); staff resistance to change (36.7 per cent); and uncertainty about transformation outcomes (34.6 per cent).
Internationalisation momentum is building, with half of the respondents scaling their overseas expansion efforts, up from 44 per cent last year, Kho noted. Malaysia, China, Indonesia, Vietnam and Thailand emerged as the top five markets of interest.
Firms cited three main reasons for pivoting to South-east Asia: tapping market potential (61.4 per cent); sourcing goods and materials (29.3 per cent); and managing geopolitical risks to improve business resilience (25.2 per cent).
Businesses identified three key challenges from the US’ tariffs: market uncertainties (49.9 per cent); higher operating costs (28.4 per cent); and supply chain disruptions requiring reconfiguration (22.1 per cent).
To counter these effects, firms are adopting three main strategies: diversifying into new markets (33 per cent); sourcing from alternative suppliers (27.4 per cent); and delaying investments (25.2 per cent).
