Singapore. The new GST hike which took effect on 1 January has been causing fear among SMEs in Singapore, with 63% believing it will hinder their business growth for 2023.
Apart from the newly implemented GST hike, SMEs are also concerned about rising energy prices (64%), and global inflation (76%).
To mitigate these, SMEs want relief and support from the government (43%). Around 73% are also trying to implement cost control measures, and 44% said they want to downsize to countermeasure.
That said, SMEs still have a positive outlook on the country’s economy with 59% stating the economy improved last year. Roughly 59% of SMEs are also expecting the economy to improve this year.
Moreover, 58% are expecting more increases in their business this year. Around 41% are also expecting their business size to grow in 2023. Almost half of local SMEs are also expecting to spend more on their capital, and 42% are expecting to hire more staff.
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