According to the OCBC SME Index, which registered a reading of 49.7, business activity in Singapore contracted in 1Q2024. A reading of under 50 indicates a deterioration of SME collections and payments compared to the previous quarter.
Based on this, OCBC’s 1Q2024 GDP Nowcast is projected at 2.5% – lower than the 2.8% growth Singapore achieved in the previous quarter.
The OCBC SME Index also breaks down the performance of individual industries. Only 3 industries registered a positive reading in the OCBC SME Index for 1Q2024.
Read Also: Jobs In Demand: 5 Sectors That Will Do Well In 2024
#1 Retail Industry
The Retail industry registered 3 consecutive quarters of growth. This was likely supported by sustained international visitor arrivals and resilient non-discretionary spending.
#2 Education Industry
Singapore’s Education industry rebounded into expansionary territory after recording a dip in the previous quarter. In general, the Education industry has been on an upward trajectory – experiencing improved business activity in 5 of the last 6 quarters.
This growth was supported by the Training Centres and Recreation Classes segment, while the Early Childhood Education segment declined.
#3 F&B Industry
F&B has also been a relatively resilient in the past 6 quarters – with 4 of those quarters registering improving business activities.
In line with the improvement in the overall Retail industry, F&B Retail also expanded. Similarly, F&B Services, likely underpinned by higher domestic consumption during the CNY festive season and tourism receipts, witnessed its 8th consecutive quarter of growth.
While F&B Wholesale Trade segment continued to deteriorate, it was at a slower pace than previous quarters.
ICT Was The Worst Performing Industry In 2024
Information and Communications Technology (ICT) was the worst performing industry in 1Q2024. Underpinned by a dip in tech demand, business activity in the ICT industry has contracted in the past 7 consecutive quarters.
This has also been accompanied by an overall fall in employment count – with wage bills shrinking 9% in the quarter.
The Data Processing and Software Development segment was also the worst performing of all industry segments in 1Q2024. The bright spark for the industry was in ICT Manufacturing and Sales, following a pick-up in electronics manufacturing activity.
The Data Processing and Software Development segment was also the worst performing of all industry segments in 1Q2024. The bright spark for the industry was in ICT Manufacturing and Sales, following a pick-up in electronics manufacturing activity.
Read Also: Why Singapore Employees Need To Be Ready For Retrenchment In 2024
51% Of SME Owners Expect Business To Improve In Next 6 Months
While Inflation remains a top challenge for SMEs, 51% of SME owners expect their business to improve in the next 6 months. Another 37% of SME owners expect business to remain the same.
Only 12% of SME business owners expect their business to weaken – with the Building & Construction and ICT industries in particular showing less confidence.
Subscribe To The DollarsAndSense Business Pass
Enjoy what you are reading and want more? Join The DollarsAndSense Business Pass and unlock access to valuable tools, exclusive networking opportunities, and tap into the wisdom of industry experts to fuel your business expansion!
