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

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.

HE ANNUAL ASIA-PACIFIC

Small Business Survey found that 62 % of small businesses in Singapore expect growth this year, marking the highest level of confidence recorded since 2018. Additionally, 63 % of respondents expressed confidence in the country’ s economic growth, up from 60 % 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 forwardthinking 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 % of Singapore’ s small businesses reported generating more than 10 % of their revenue from online sales, up from 36 % in 2019. Furthermore, 76 % of small businesses generated more than 10 % of their sales from digital and online payment technologies such as PayPal, Apple Pay and GrabPay. This result is well above the 51 % 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 % in 2023 to 39 % in 2024. Small businesses expect this downward trend will continue, with only 33 % of businesses anticipating a cyberattack this year, down from 45 % 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 cyberthreats,” Unsworth added.

The survey also found a continued positive trend towards the adoption of Environmental, Social and Governance( ESG) initiatives. While 29 % 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 % of small businesses

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