Survey uncovers that in response to challenges, companies are focusing on improving cost efficiency, expanding overseas and are looking to assistance to grow business contacts and tap into opportunities
Singapore, 27 August 2008 – The Singapore Business Federation today released the results of a business survey of its 15,000 members conducted on its behalf by DP Information Group.
The survey revealed that in the face of a challenging economic and business environment, companies, especially SMEs:
- Will be focusing on improving cost efficiency and productivity as well as looking to expand overseas.
- Are yet to be convinced that a brand strategy is essential to growth, although 62% of respondents saw the usefulness of a “Singapore brand.”
- Are looking to SBF to benefit from greater business interaction, opportunities and networking.
The survey, conducted in the first half of this year showed that business concerns have shifted from competition to increasing costs and manpower issues. 64% of respondents cited operating cost as the key challenge in 2008. Manpower issues were the next top concern of businesses at 50%.
In terms of strategies to combat business challenges, 41% of matured companies are focusing on increasing cost efficiency and productivity; whilst 26% and 15% of companies in the “decline stage” are looking at overseas expansion and diversification respectively.
In regard to overseas activities, the survey uncovered that the commerce (75%) and manufacturing (73%) sectors had the highest proportion of respondents who cited deriving turnover from overseas. Asia emerged as the most popular destination (81%), with China (34%), Vietnam (32%) as the top two most preferred countries for overseas ventures by SBF members. India is third at 22%, whilst the Middle East is at 18%. Among the respondents, 85% are aware of the potential benefits of FTAs. 35% of respondents cited manpower issues as an obstacle to overseas expansion, whilst 28% said that lack of overseas business contacts was a hindrance.
In terms of branding, 62% of respondents were in general agreement that a “Singapore brand” was useful; with 13% of respondents from the finance, communications, transportation and storage sectors seeing the presence of a Singapore brand as a key asset in helping them grow their business.
Mr Teng Theng Dar, CEO of Singapore Business Federation noted that the broad findings of the survey were in sync with the feedback he has received through interaction with the business community.
In view of the challenging economic and business environment, SBF will step up the pace of its activities to help companies build capacity and facilitate business exchanges with overseas chambers and enterprises through the formation of business communities. “Key SBF initiatives like EnterpriseOne Business Information Services (business information and intelligence), SBF Global Sourcing Hub (online procurement), Mentorship Program (facilitation of business skills and know-how) will be enhanced and will dovetail into the activities of business communities like the SBF Middle East Business Group to help our companies scale up and venture overseas with confidence”, he added.
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