Most Singapore Businesses Expect Higher Revenue In 2022

SINGAPORE – 73 percent of businesses in the city-state expect their revenue this year to recover to or surpass pre-pandemic levels, but only 57 percent of consumers expect to resume or exceed pre-pandemic spending levels, according to an American Express survey that was published on Monday morning (1 August, SGT).

For the second half of the year, 79 percent of businesses are upbeat about their prospects compared to 60 percent for consumers, based on American Express’ 3rd Shop Small Research for Singapore.

However, 65 percent of consumers are adopting a more conservative approach on spending because of economic uncertainty and increasing costs, with Gen X being the most conservative. If costs continue to rise, 45 percent of consumers said they will be considering to slash spending across all categories.

“As pandemic restrictions ease and travel resumes the first half of this year, most businesses are optimistic and expect annual revenue to rise,” said Elroy Lim, General Manager and Vice President of Merchant Services at American Express Singapore.

“However, our consumer survey shows that while consumers have resumed pre-pandemic social activity, they are approaching spending conservatively.”

Meanwhile, 79 percent of business leaders are upbeat about the prospects for H2 2022, while 21 percent are nervous, worried, stressed.

However, the study revealed that 49 percent of Singapore businesses think they cannot survive beyond six months if sales don’t recover by the end of 2022 or expenses continue to rise.

Rising costs has become the top business challenge this year, overtaking the COVID-19 pandemic. The top factors for rising costs are higher expenses for logistics (42 percent), raw material (42 percent) and manpower (37 percent).