SINGAPORE, April 8 — Business sentiment among Singapore’s small — and medium-sized enterprises (SMEs) is at its highest since the start of the Covid-19 pandemic, as economic activities worldwide have largely resumed. 

With Singapore’s economy on the path of recovery, most SMEs are also looking beyond keeping their business afloat, and towards expansion and hiring. They are also hoping to capitalise on the resumption of business activity over the next six months.

These are among the findings of a survey, released yesterday, by the Singapore Business Federation (SBF) and information services company Experian, which measured business sentiment across six key industries for April to September.

The survey of more than 2,100 Singapore SMEs was done between Jan 18 and Feb 26.

The SBF-Experian Index, a barometre of business sentiment, registered a reading of 49.9 out of 100 for the next six months, an increase from 48.2 for January to June.

An index reading below 50, however, indicates that the overall outlook is still negative and that the level of business activity is set to be contractionary, and business sustainability of SMEs is expected to be poor. 

An index reading of 50 is neutral, while a reading above 50 points to a positive outlook.

The global economy is expected to grow by 5.5 per cent this year, with business sentiment given a further push by expectations of stronger policy support as well as vaccination campaigns, SBF and Experian said. The Singapore economy is forecast to expand by 4 to 6 per cent this year, after its worst recession on record last year. 

Which sectors recorded the largest improvements? 

After a record-low business outlook during the pandemic last year, all six sectors polled saw improvements in business sentiment.