Singapore SMEs bank on marketing

Singapore - Singapore small and medium enterprises (SMEs) have been swift in responding to the global crisis, with as many as 75% of the 304 SMEs surveyed by Kadence reviewing their product range and almost an equal number implementing new sales and marketing activities.

While more than half of those surveyed have reported a dip in business confidence, expecting worse prospects for the coming twelve months, an equal number say they are looking at opportunities in newer markets.

"The global economic crisis is clearly hitting business confidence hard but the SME sector in Singapore is proving resilient and nimble. These firms are the very heart of the country's economy and the source of many new products and services which they are quick to take to market," Piers Lee, managing director of Kadence, said.

The overall Kadence Business Confidence Index has fallen from 66 in January, this year to 35 in October.

As against these figures only 40% of businesses in Hong Kong expect to launch new marketing and sales activity and only 14% are looking at joint ventures, compared to 31% in Singapore.

"Although the survey shows that SMEs in Hong Kong might have an advantage in terms of financial liquidity, human resources and more stable prices, it will be the ability of businesses to reinvent themselves that will make the difference. The increased sales and marketing activity planned by Singapore SMEs may well give them a competitive advantage when the recovery starts," Lee added.