Despite Economic Mishaps, Singapore’s SMEs Continue to Grow: Recent data shows that Singapore’s Covid-19 contract and ongoing inflation due to the Ukraine-Russia war did not significantly impact growth for small and mid-sized enterprises (SMEs), in the second quarter 2022. The proactive action plan, the government grant to SME, as well as an effective response, are responsible for rapid economic recovery.
All sectors of the industry are in expansionary territory. Four industries are coming out of recession: education, building and construction, food and beverage (F&B), and retail.
The overall index reached 52 after reading 50.5 in quarter before. It marks six consecutive quarters with expansion. An increase of activity above 50 means that there has been more activity than usual, while a lower reading indicates a decline in activity relative to the previous year.
The global recovery is expected to continue in Q3 2022, which will be expansionary despite the increased supply-side challenges and inflationary pressures from Singapore.
The majority of industries saw better performance, which led to higher collections. The quarter’s Gross Domestic Product (GDP) Nowcast estimated that GDP growth via the index was 5.8 percent. This compares to the 3.7% growth recorded in Q1 2022.
The most recent Nowcast is “directionally aligned” to the boost in the consensus forecast of 4.8% in the Monetary Authority of Singapore survey for professional analysts.
Because of the availability government grants for SMEs, strong cross-border trading, and wholesale trade, logistics and transport, manufacturing have maintained growth. Due to an increasing presence in the logistics sector, transport and logistics saw continued growth. Due to the expansionary nature of land transport, both sea and land transport were also able to pick up in this quarter.
Manufacturing saw a 14 percent rise in annual collections thanks to consumer products. A healthy 12 percent increase was also recorded in the innovative sector’s annual collections.
The sub-sector of electronics and semiconductors was in contraction, but it is expected to recover in the second half.
F&B, business services and F&B have greatly benefited by the opening of travel borders. Comparatively to the preceding quarter, F&B experienced a rebound as the decrease in safe distancing was met by constrained demand due to larger dining events and higher visitor traffic.
Digitalization’s increased momentum drove ICT (information and communication technology) growth.
The increase in education was due to the expansion of early childhood education and recreation classes. There were also fewer restrictions on Covid and a greater proportion of parents returning from work. Education shrank slightly from the previous quarter. The reopening border will allow foreign labor to resume and training centers should see a revival in the next quarters.
SME business owners may need additional capital to expand or recover. The government grant for SMEs in Singapore through banks institutions can help. Numerous financial support programs, including subsidies and grants, are currently available. There are many options to choose from, so you can be sure to find one that suits your needs.
Considering government grants?
SME grants Singapore offer to entrepreneurs are also worth considering. COVID-19 Relief Loans. SME Fixed Assets Financing. Merger & Acquisition. Venture Debt Loan. Enterprise Financing Scheme Trade Loan. Project Loan.
