UOB Study Highlights Evolving Priorities Among Singapore Enterprises
A growing number of Singapore businesses are urging for increased support in international expansion and reduced foreign worker levies in Budget 2023, as revealed by the UOB Business Outlook Study 2023. The survey, conducted between Dec 28, 2022, and Jan 10, 2023, gathered responses from 823 small and medium-sized enterprises (SMEs) and large enterprises.
Shifting Priorities as Economy Recovers
As the global economy shows signs of recovery, fewer businesses require extensive support compared to Budget 2022. Key findings from the study include:
Top Priorities: Businesses prioritised an extension of the Job Support Scheme (45%), wage credit schemes (35%), and funding for digital adoption (33%). While these measures remain important, demand for them has decreased slightly compared to 2022.
Overseas Expansion: Interest in overseas market support has grown significantly, with 32% of businesses seeking assistance, up from 24% in 2022. Medium-sized enterprises (41%) showed a stronger preference for this support than smaller businesses (23%).
Foreign Worker Levies: Calls for reduced levies increased by 10 percentage points, with 30% of businesses advocating for this measure compared to 20% last year.
Navigating Cost Pressures and Growth Opportunities
With inflation continuing to affect operating expenses, including raw material costs, rent, and utilities, businesses are focusing on strategies to mitigate financial pressures. Key priorities include cost reduction, exploring new customer bases, and investing in employee upskilling to seize emerging opportunities.
Sustainability Gains Importance
Sustainability has taken centre stage, with 76% of businesses acknowledging its importance—a notable increase from 60% in the previous year. This shift highlights the growing awareness and integration of sustainable practices within business operations.
Insights from UOB
Eric Lian, head of group commercial banking at UOB, noted, “With inflation remaining high, businesses are concerned about rising costs across various operational areas. Nonetheless, many are adopting proactive measures to explore new markets and enhance capabilities to drive growth.”
As businesses navigate a transitioning economic landscape, Budget 2023 will play a pivotal role in addressing their evolving needs and ensuring long-term resilience.
