17 Local Singaporean Business Statistics in 2023

In 2023, the landscape of local Singaporean businesses is marked by a mix of optimism and challenges. This analysis will delve into the 17 key statistics that shed light on the current state of Singapore's business environment, offering insights into its economy, the role of Small and Medium Enterprises (SMEs), and its standing on the global stage.

17 Important Local Singaporean Business statistics in 2023

1. 40% of businesses forecast that the local economy will improve in 2023, while 26% of businesses think it will worsen [source]
2. As of September 2023, there are 639,644 limited partnerships, 425,427 public accounting firms, and 13,000 variable capital companies registered in Singapore [source]
3. Singapore narrowed its economic growth forecast to a range of 0.5% and 1.5% for 2023, citing sluggish external demand amid a weak global economy [source]
4. The Import, Export, Singapore Manufactured Products, and Domestic Supply Price Indices rose 1.6%, 0.8%, 0.1%, and 1.7%, respectively, in July 2023 over June 2023 [source]
5. 59% of business owners are optimistic for the future, with 63% expecting revenues to rise [source]
6. SMEs make up 99% of all enterprises in Singapore [source]
7. SMEs support 71% of total employment in Singapore [source]
8. 80% of SMEs in Singapore are locally owned [source]
9. 20% of SMEs in Singapore are foreign-owned [source]
10. In 2023, Singapore's overall GDP is expected to be S$594,000 million [source]
11. Small and Medium Enterprises (SMEs) in Singapore are defined as companies with a turnover of less than S$100 million or employ 200 or fewer employees [source]
12. Singapore is a high-income economy with a gross national income of US$54,530 per capita, as of 2017 [source]
13. Singapore provides one of the world’s most business-friendly regulatory environments for local entrepreneurs [source]
14. Singapore is ranked among the world’s most competitive economies [source]
15. Singapore ranks highest in human capital development and second highest in the 2018 Doing Business index [source]
16. SMEs contributed 48% (S$284 billion) of Singapore's total enterprise nominal value-added in 2022 [source]
17. SMEs employed 71% of Singapore's total workforce of 3.63 million in 2022 [source]

Now, here are my personal thoughts and analysis on the statistics in-depth.

The Economic Outlook

Economic Expectations

The statistics reveal a mixed sentiment within the local business community regarding the economic outlook in Singapore. While 40% of businesses forecast an improvement in the local economy in 2023, a significant 26% remain cautious, anticipating a worsening economic situation. 

This divergence in expectations highlights the uncertainty that businesses are grappling with, which can influence their strategic decisions.

Economic Growth and Challenges

Singapore's economic growth forecast for 2023, ranging from 0.5% to 1.5%, reflects the challenging external environment marked by weak global economic conditions. 

This statistic underscores the vulnerability of the Singaporean economy to global fluctuations and the need for businesses to adapt to this uncertain economic landscape.

Inflationary Pressures

The rise in the Import, Export, Singapore Manufactured Products, and Domestic Supply Price Indices in July 2023 over June 2023 signals inflationary pressures. 

This increase has implications for local businesses as it impacts their operational costs and pricing strategies. Businesses need to monitor these indices closely and adjust their financial strategies accordingly to maintain profitability.

Role of SMEs in Singapore

Dominance of SMEs

SMEs play a central role in Singapore's business landscape, constituting a staggering 99% of all enterprises. This statistic highlights their dominance and underscores their significance in driving economic growth and job creation within the country.

Employment Contribution

SMEs are not just numerous; they also provide employment to a substantial portion of Singapore's workforce. Supporting 71% of total employment, SMEs serve as crucial pillars of the labor market. This statistic emphasizes the role of SMEs in reducing unemployment and fostering economic stability.

Ownership Dynamics

Singapore's SME sector exhibits a balance between local and foreign ownership. While 80% of SMEs are locally owned, 20% are foreign-owned, reflecting the international dimension of Singapore's business ecosystem. This diversity in ownership can create opportunities for collaboration and innovation.

Definition of SMEs

The definition of SMEs in Singapore based on turnover and employee criteria offers a clear classification for businesses. This distinction enables policymakers and businesses to tailor support and regulations to the specific needs of SMEs, which can be vital for their growth and sustainability.

Singapore's Global Standing

Impressive GDP

Singapore's expected overall GDP of S$594,000 million in 2023 demonstrates its economic significance on the global stage. This statistic reinforces Singapore's role as a major player in the global economy, attracting businesses and investments from around the world.

High-Income Economy

As a high-income economy with a gross national income (GNI) of US$54,530 per capita, Singapore's citizens enjoy a high standard of living. This statistic highlights the affluence of the population and the potential for businesses to cater to a prosperous consumer base.

Business-Friendly Environment

Singapore's reputation for providing one of the world's most business-friendly regulatory environments is bolstered by this statistic. The ease of doing business in Singapore is a key attraction for local and international entrepreneurs, fostering a vibrant business ecosystem.

Global Competitiveness

Singapore consistently ranks among the world's most competitive economies. This statistic underscores the country's commitment to innovation, infrastructure development, and policies that enhance its competitive edge, making it an attractive destination for businesses seeking growth and expansion.

Human Capital Development

Singapore's top ranking in human capital development highlights its investment in workforce skills and education. This statistic reinforces the country's commitment to nurturing a skilled workforce, which is essential for the sustainable growth of businesses.

Doing Business Index

Singapore's high position in the Doing Business index signifies its efficiency in business regulations and ease of starting and operating a business. This statistic further cements Singapore's reputation as a hub for entrepreneurship and investment.

Contributions of SMEs

Economic Value-Added

The substantial contribution of SMEs, accounting for 48% (S$284 billion) of Singapore's total enterprise nominal value-added in 2022, underscores their economic significance. This statistic highlights how SMEs are pivotal in driving economic growth and value creation within the country.

Workforce Contribution

SMEs' role in employing 71% of Singapore's total workforce of 3.63 million in 2022 is crucial for the labor market. This statistic emphasizes the role of SMEs in reducing unemployment, providing livelihoods, and supporting the well-being of the local population.

Conclusion

In conclusion, the key statistics on local Singaporean businesses in 2023 provide valuable insights into the challenges and opportunities facing the business community. 

Economic uncertainty, inflationary pressures, and global economic conditions are factors that businesses need to navigate. SMEs continue to be the backbone of Singapore's economy, contributing significantly to both economic value and employment. 

Singapore's global standing as a business-friendly and competitive destination remains intact, making it an attractive hub for local and international entrepreneurs alike. Businesses should remain adaptable and resilient in this dynamic environment to thrive and succeed.