SMEs plan to digitalise to overcome manpower constraints: Survey

Most businesses here expect to be profitable this year, but cite rising costs as a top concern. They also see digitalisation as a way to overcome manpower constraints.

- Chin Soo Fang

These were the key findings from an annual business survey conducted by the Singapore Chinese Chamber of Commerce and Industry (SCCCI) between June and last month. About 90 per cent of the more than 1,000 respondents were small and medium-sized enterprises (SMEs).

Sharing the survey results at the SCCCI's SME and Infocomm Commerce Conference (SMEICC) at Suntec Singapore Convention and Exhibition Centre on Tuesday, SCCCI president Kho Choon Keng said businesses were generally recovering from the impact of the Covid-19 pandemic, with 38 per cent of the respondents projecting that their revenues would increase, compared with 26 per cent last year.

Of the firms surveyed, 72 per cent forecast that they would turn a profit this year.

However, 75 per cent indicated that they faced rising business costs, compared with 57 per cent last year. Cost increases, availability of suitable manpower and inflationary pressures were the top three business challenges, the survey found.