Small and medium-sized enterprises (SMEs) in Singapore are feeling the effects of the recent Goods and Services Tax (GST) increase, with 63% predicting that it will slow their company’s development in the coming year. A study conducted by QBE Insurance found that these businesses are not only concerned about the GST increase, but also global inflation (76%) and rising energy prices (64%).
In an effort to combat the potential impact of these conditions, many SMEs are turning to the government for help and support (43%). Even with these worries, SMEs in Singapore are still optimistic about their future. 59% think the economy will get better in the next year, and 61% think it will get better in 2023.
Despite worries, SMEs remain optimistic
Despite the challenges posed by the GST increase and other economic conditions, SMEs in Singapore remain bullish on the future. In fact, 58% of these businesses anticipate additional gains in 2023, and 41% are expecting an increase in the size of their company this year. Nearly half of SMEs (47%) also plan to increase their capital expenditures, and 42% plan to increase headcount in the next year.
As a defense, 44% of SMEs stated that they are prepared to reduce staff or simplify operations. But the vast majority (73%) of these businesses would use some type of budgeting strategy to mitigate the impact of the GST increase and other economic conditions.
Also read: Seven Ways DevOps Can Help SEA SMEs Build Their Digital Firepower
What does SME stand for, and what percentage of Singapore is SME?
SME stands for Small and Medium-Sized Enterprises, which play a significant role in Singapore’s economy. Small and medium-sized businesses make up about 99% of all businesses in Singapore and employ about 70% of the work force.
How to start a SME in Singapore?
Starting a SME in Singapore is a feasible option for entrepreneurs and business owners, as the government offers various incentives and support.
What is the GST in Singapore, and Is Singapore’s GST zero rated?
The GST in Singapore is a value-added tax that is imposed on most goods and services consumed in the country. On January 1st, the GST rate increased from 7% to 9%. It is not a zero-rated tax, which means that most goods and services are subject to the GST.
Is QBE an insurance company?
QBE is an acronym for Queensland Bankers and Traders Insurance Company, an Australian multinational insurance company founded in 1973 in Sydney. QBE has offices in 27 countries and offers a wide range of insurance products and services, including insurance for small and medium-sized enterprises (SMEs).
