Confidence among small businesses in Singapore rises

• Business sentiment among small businesses in Singapore reached a five-year high in 2024, with a positive outlook expected to continue into 2025.
• Cybersecurity health improved.
• Sharp decline in businesses planning to innovate in 2025.

SINGAPORE, March 24, 2025 /PRNewswire/ -- Business sentiment among small businesses in Singapore last year surged to its highest level since 2019, and this positive trend is expected to continue into 2025, according to the latest survey by global professional accounting body CPA Australia.

The annual Asia-Pacific Small Business Survey found that 62 per cent of small businesses in Singapore expect growth this year, marking the highest level of confidence recorded since 2018. Additionally, 63 per cent of respondents expressed confidence in the country's economic growth, up from 60 per cent in 2024. These figures underscore the strengthening business environment in Singapore.

CPA Australia Singapore Divisional President, and Digital Business and Risk Services Leader at PwC Singapore, Greg Unsworth, said: "The strong confidence among small businesses in Singapore reflects a growing sense of optimism, not only in business prospects but in the overall economic environment. The key to continued success is for businesses to stay agile and forward-thinking and seize new opportunities."

The survey highlighted continued strong uptake of technology, with a notable increase in online and digital payment adoption. In 2024, 63 per cent of Singapore's small businesses reported generating more than 10 per cent of their revenue from online sales, up from 36 per cent in 2019. Furthermore, 76 per cent of small businesses generated more than 10 per cent of their sales from digital and online payment technologies such as PayPal, Apple Pay and GrabPay. This result is well above the 51 per cent reported in 2019.

On the cybersecurity front, Singapore's small businesses saw fewer cybersecurity incidents. The percentage of businesses reporting losses or disruptions due to cyberattacks dropped sharply from 54 per cent in 2023 to 39 per cent in 2024. Small businesses expect this downward trend will continue, with only 33 per cent of businesses anticipating a cyberattack this year, down from 45 per cent last year. "This improvement suggests that small businesses are enhancing their cybersecurity measures and are becoming more resilient and better equipped to safeguard their operations from cyber threats." Unsworth added.  

The survey also found a continued positive trend towards the adoption of Environmental, Social, and Governance (ESG) initiatives. While 29 per cent of businesses did not allocate time or resources for ESG-related activities in 2024, many are still focusing on key ESG areas such as staff health and safety policies, supply chain sustainability, and diversity and inclusion efforts. These initiatives reflect the ongoing commitment of Singapore's small businesses to sustainable and responsible practices.

CPA Australia Singapore Divisional Deputy President, and Managing Partner at Baker Tilly, Joshua Ong, said it is encouraging to see small businesses in Singapore are increasingly recognising the importance of ESG.

"Embracing these practices serves as a strategic approach to future-proofing the business. By adopting responsible environmental practices, strengthening governance and fostering social impact, small businesses can gain a competitive edge over their peers and strengthen their brand reputation with customers and investors," Ong said.

Despite the optimistic outlook, the survey findings observed a declining trend in innovation. Only 23 per cent of small businesses plan to introduce a new product, process or service that is unique to Singapore or the world this year, a sharp decrease from 37 per cent in 2024. While this figure remains slightly above historical averages, it signals a potential slowdown in business innovation.

The demographics in the survey indicate that the age profile of Singapore's small business owners is ageing. While this trend is less pronounced than in Australia and New Zealand, the survey indicates a strong correlation between business owners under 40 and higher levels of business growth, digital adoption, innovation and job creation. As the proportion of older business owners rises, it could pose long-term challenges for the dynamism and sustainability of some small businesses.

Small businesses in Singapore have also lowered their expectations for strong revenue growth from exports. The percentage of businesses anticipating strong revenue growth from exports has dropped from 27 per cent in 2024 to 18 per cent in 2025. "Geopolitical tensions and the possibility of trade tariffs are most likely the cause of concerns about export growth," Ong said.

Despite the challenges, the overall outlook for small businesses in Singapore remains positive. Growing business sentiment, technology adoption, and cybersecurity resilience are expected to maintain their momentum into the year ahead.

CPA Australia's Asia-Pacific Small Business Survey, including a detailed summary of the results for Singapore and an infographic

About the survey

CPA Australia's 16th annual Asia-Pacific Small Business Survey was conducted among small business owners/senior managers during November and December 2024 to identify the characteristics of successful small businesses across the region. The findings for the survey come from 4,236 small businesses in 11 markets. From the commencement of the survey in 2009, we have surveyed over 46,000 small businesses across the region. These include Australia, Mainland China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Vietnam.

About CPA Australia

CPA Australia is one of the largest professional accounting bodies in the world, with more than 173,000 members in over 100 countries and regions, including more than 8,600 members in Singapore. CPA Australia has been operating in Singapore since 1954 and opened our Singapore office in 1989. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at cpaaustralia.com.au

SOURCE CPA Australia