Business confidence among Singapore SMEs has climbed since the fourth quarter of 2008, according to the latest HSBC Emerging Markets Small Business Confidence Monitor.
Across Asia, all eight markets in the survey show an increase in business confidence in the SME sector compared to six months ago.
In this semi-annual survey of the small business sector, the HSBC Emerging Markets Small Business Confidence Monitor reflects the views of more than 3,400 SMEs in 12 markets across Asia, Latin America and the Middle East. Respondents were asked about their six-month outlook on economic growth, capital investment plans and recruitment plans. The results were used to calculate a monitor ranging from 0 to 200 where 200 represents the highest confidence level, 0 represents the lowest and 100, neutral. The survey was conducted in May and June 2009.
The regional index rose from 92 in the fourth quarter of 2008 to 107 in the second quarter of 2009. Singapores business confidence is at 93, a 23 point increase from six months ago. The highest index score was Vietnam with 150, followed by India (128), Mainland China (105) and Indonesia (101). Malaysia (99) and Taiwan (98) were just below neutral, while Hong Kong was the most bearish with a score of 83.
This latest HSBC Small Business Confidence Monitor also included, for the first time, the Middle East and Latin America. As in Asia, the more domestic-oriented economies show more optimism than those more dependent on exports. Brazil and Saudi Arabia both scored 127 on the index; the UAE, 95 and Mexico, 91.
Singapores open business environment and reliance on global trade means that our SMEs are particularly vulnerable to external shocks, says Tan Siew Meng, HSBCs head of commercial banking in Singapore. While Singapore SMEs are among the least optimistic of the 12 markets in the survey, they have also shown a large upturn in business confidence with a 43 percentage point improvement in economic outlook from six months ago. These results support what we see among our SME customers majority intends to maintain current levels of headcount and more are planning to increase their capital investments. This is a very positive sign that SMEs in Singapore share the regions optimism that the economy may have reached a turning point.
D.C.