Singapore SMEs in expansionary mode despite uneven outlook: OCBC
More positive outlook partly due to easing concerns over Mid-East conflict as its impact is less severe than expected
Despite uneven business conditions, Singapore's small and medium-sized enterprises (SMEs) remained in expansionary mode in Q3 2026, according to the latest OCBC SME Index. The index, which measures business health and performance, rose to 51.9 from 51.3 in the previous quarter. A score above 50 indicates increased activity, while below 50 signals contraction.
The index is based on transactional data from over 100,000 OCBC Bank SME customers with annual sales turnover up to S$30 million. However, the outlook for SMEs is uneven across and within industries due to differences in cost structures, productivity levels, and technology adoption. Elaine Heng, OCBC's head of global commercial banking, noted that businesses that can capture emerging opportunities, manage costs, invest in productivity, and leverage technology will perform better.
The expansion in Q3 was driven by strong momentum in outward-oriented sectors, while domestically focused sectors showed more modest growth. Around 42% of SME owners expect conditions to improve in the near term, up two percentage points from the previous quarter.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
