Quotes are from The Straits Times

In a recent survey by UPS Asia Business Monitor, SMEs in Singapore view costs and competition as their topmost business concerns.

Their faith in their competitiveness compared to regional SMEs was amongst the lowest compared to their Asian counterparts, with China ranking last and Philippines placing first. Singapore came in 9th out of 13 countries in the region.

Stone Forest Corporate Advisory director Tay Woon Teck says,"SMEs take this view (that they are less competitive than regional peers) mainly because they are more cautious about risk-taking and view higher labour costs at home as a hindrance. He said that local SMEs are still among the gloomiest in the region, post-recession, despite the strong showing of the local economy. "I think this because of the psyche of our SMEs, which have, over the years worried about rising costs. They typical comments on our SMEs are that they are 'kiasu'. But generally in the Asia-Pacific region, the SME communities of the other countries see us as a lot more competitive than them."

He sets out some advice for SMEs to grow. "First of all, we need to conquer the fear of losing, which is a strong negative. Secondly, we must overcome denial, which is the belief that we are a small country and have a small domestic market and a costly workforce, and as a result we cannot be compared to the larger neighbours surrounding us. Thirdly, we must overcome learning obstacles…and adapt to a more global mindset from what we have learnt in Singapore in order to expand within the region. I think a change of mindsets in these areas is necessary."

He also mentioned that SMEs should collaborate with large companies when considering opportunities for growth.

This article was published in The Straits Times on the 25th August 2010, titled "Regional rivals vex Singapore SMEs".