Singapore's small- and medium-size enterprises (SMEs) are expecting an increase in sales this year, but they don't expect this to translate to higher profits or result in more people being hired, a survey by Grant Thornton International indicates.
While a net 13% of respondents to the poll said they are optimistic about an improvement in turnover for 2004, only a net 3% expect higher profits while a net 1% are pessimistic about employment prospects.
The survey, which was carried out in September-October 2003, also showed 16% of Singapore’s SMEs have transferred part of their operations to another country and another 14% are planning to do so. The main reasons cited were cheaper labour (90%), followed by better access to markets (69%).
Only Hong Kong, with 30%, had a higher proportion of SMEs with operations in another country, said Foo Kon Tan Grant Thornton partner Bill Hutchison.
