USQ Singapore Alumni Chapter Chairman and Deloitte Managing Partner, Dr Janson Yap, has been featured in the AAS Magazine with his thought leadership piece on "Succeeding and Scaling an SME in a soft economy". This article explores different survival and growth challenges and “probable-win” strategies for SMEs.
The global economic environment continues to be soft and Singapore is not spared as
evidenced in the low 1.8% growth in 2016. Growth projection remains low at 1.5% to 2% for
2017. There were over 190,000 enterprises in 2015 with 82% of these being locally owned
enterprises (LOE), defined as majority Singaporean owned with at least 50% equity.
Considering that 99% of these enterprises are in the Small Medium Enterprises (SME) segment,
their survival and success thereof are very important to the overall economy. SMEs are
enterprises whose operating receipts do not exceed S$100 million or a workforce of not more
than 200 workers.
Singapore having just celebrated its 50th independence anniversary is still a young economy. Its early development is through an open-economy model encouraging foreign direct investments and has become an “entrepot port” over time. Therefore, these LOEs have the advantage of “global-regional” business exposure more than its neighbouring economies.
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