SME performance in Q2 2025 improves, It could be temporary though

Singapore’s small businesses showed a mild rebound in Q2 2025, with the OCBC SME Index rising to 50.5, signalling a return to expansion (from 49.9 in Q1). Collections grew faster than payments, reflecting better cashflow among SMEs. Export-oriented industries such as manufacturing and wholesale trade improved as firms front-loaded shipments ahead of tariff changes. Domestic-focused sectors, including F&B and business services, also recorded healthier activity. 

However, logistics and ICT continued to contract, highlighting uneven recovery across industries. Although performance stabilised, sentiment remained cautious, with more than half of SMEs expecting business conditions to stay weak or worsen. Concerns around global tariffs, supply-chain risks and interest-rate volatility continued to weigh on confidence. OCBC noted that the Q2 uptick may not signal sustained momentum, given lingering external uncertainties. 

Still, the quarter showed that SMEs are gradually adapting to a volatile environment. The data suggests resilience, but not a full turnaround. Overall, Q2 marked a modest but fragile improvement for Singapore’s SME sector.