Reasons Small Businesses in Singapore are Less Affected than Neighbours
Thanks to Government stimulus, Singapore's small business continue to maintain resilience in 2020, heading to 2021.
11:49 29 April 2021
According to Singapore Business Review, 29% of respondents in the CPA Australia survey said the government had supported them through 2020. Small businesses were gravely affected, especially during the height of the pandemic in 2020. Still, it turned out that compared with their Southeast Asian counterparts, Singapore small businesses prove to be more resilient.
The survey also revealed that 55% of Singapore's small businesses were adversely affected by the pandemic. The result was comparatively lower than 67% in Malaysia, 81% in Vietnam, and 68% in Indonesia. This resiliency was managed by going digital, as 75% said they continued earning revenue in online sales.
Amid the pandemic, many small businesses in Singapore adopted new ways of working by leveraging technology to support their business operations. 84.6% of businesses used social media to promote their businesses compared to 71.2% in 2019, while 84.8% shifted to new digital payment technologies. 29% of businesses said the government support influenced their businesses positively in 2020, while 27% sought government support as a response to the pandemic.
The annual survey polled 4,227 small businesses in 11 Asia-Pacific markets, which includes 307 respondents from Singapore.
In 2020, the government invested approximately S$100 billion in stimulus measures to support local enterprises and the economy, intending to save jobs. More than half (53%) of small businesses in Singapore are optimistic about growth prospects in 2021 when compared with counterparts in other developed markets like Hong Kong (21.2%), Australia (41.4%),) and New Zealand (44%),).
Singapore's small businesses are looking to enhance their focus on innovation this 2021. Nearly 19% say they will add a new product, process, or service unique to their market or the world in 2021, compared with 13.4% last year and 13.9% in 2019.
"Innovation is likely to result in business growth, especially in an increasingly competitive and disruptive business environment. Small businesses will do well to continuously improve their product offerings, customer service, or accessibility to thrive," said Mr. Max Loh, CPA Australia's Singapore Divisional President.
Furthermore, there is a growing awareness of cyber risks among Singapore's small businesses. Nearly four in ten (39.5%) reviewed their cybersecurity defenses in the past six months, and 36.5% expect the likelihood of a cyber-attack on their business this year, which is up 29.5% in 2020.
"The focus on technology is one factor that should support the recovery and long-term growth of Singapore's small businesses. Contributing to this positive trend is Singapore's excellent technology infrastructure and support for the government's digital adoption to small businesses. Yet, with greater digitalization, the risk of cyber-attacks increases. Managing cyber risks will help small businesses protect their operations and customers' data, and importantly, build trust and reputation," said Mr. Loh.
If you’ve been significantly affected by the pandemic, or you simply have plans to mend/upgrade a business component, you can consider sme loan Singapore has for small businesses. Once approved, you can use your additional capital for hiring necessary labor, emergency salary provisions, marketing boost, infrastructure upgrades, etc.
Remember to consider fees, services, special offers, and your business needs and preferences as you look for sme loan Singapore offers. You can learn more about starting an online business in Singapore by visiting a bank website.
Acquiring a business loan in Singapore if you're eligible. When you apply online, note that you'll need to upload certain documents and information to complete the process, which may vary depending on how your business is structured.