SINGAPORE, July 16 (Xinhua) -- Singapore's small and medium enterprises (SMEs) showed modest resilience in the second quarter of 2025, navigating challenging economic conditions and global geopolitical volatility, according to the latest SME Index released by OCBC Bank.
The index, which is based on transactional data from over 100,000 SMEs across Singapore, rose to 50.5 in the April-June period, up from 49.9 in the first quarter. A reading above 50 indicates year-on-year expansion, while a reading below 50 signals contraction.
The report highlighted broad-based improvements across both externally oriented and domestic-facing sectors. Overall collections increased by 5.8 percent year-on-year, while payments grew by 4.5 percent.
Among outward-facing sectors, wholesale trade, manufacturing, and resource-related industries recorded improved performance compared to the previous quarter. On the domestic front, food and beverage, business services, and building and construction also contributed to the uptick.
Despite the second-quarter rebound, the outlook for the rest of the year remains subdued. OCBC Bank noted that ongoing tariff-related uncertainties continue to weigh on sentiment.
"Additionally, the front-loading of exports over the past two quarters will probably give way to lower demand from further trade disruptions and the weakening U.S. dollar," the bank said in the report. ■
