We estimate that there were around 1,200 MMEs in Singapore. These MMEs are estimated to have supported sales of $171 billion and $58 billion in Gross Value Added (GVA). MMEs also employed 550,000 people, equivalent to 17% of market sector1 employment.
Between 2012 and 2014, the GVA contribution of MMEs increased by 11%, which was slightly faster than the rate achieved for the overall market economy over this period. MME employment rose by 8% from 2012 to 2014, in line with employment in the overall market economy.
MMEs in the manufacturing sector play an important role in the Singaporean economy, accounting for almost one-third of the GVA produced by the entire MME sector in 2014.
This was followed by MMEs in the business and financial services sectors, which accounted for a further 19% and 15% of MME GVA, respectively. In terms of employment, the manufacturing and business services sectors ranked at the top once again, this time followed by the construction industry.
In addition to the GVA and employment MMEs generate directly, the sector supports wider activity elsewhere in the Singaporean economy through supply chain and consumption multiplier impacts. We estimate that the total economic footprint of the MME sector in terms of GVA was $90 billion once these multiplier effects are included. This was equivalent to 30% of market sector GVA in that year. The total number of jobs supported, including through supply chain and consumption effects, was 900,000 (29% of total market sector employment).
Based on their industrial structure, we estimate that MMEs in Singapore are closely involved in international trade. We estimate that 50% of sales by Singaporean MMEs were exporte, primarily to other Asian economies and the US. We estimate that the total value of exports of Singapore MMEs in 2014 was almost $90 billion. MMEs in Singapore imported just over half of their supply chain purchases. The US and China are the most important trading partners for imports.
The latest estimates relate to 2014, the most recent year for which consistent source data are available for many of the countries.
1.4 Insights from MME decision-makers in Singapore
Survey of 1400 senior MME executives was conducted between July and August 2017
1.4.1 Confidence and outlook
MMEs in Singapore are more confident in the global economy (64%, vs. 58% total) and their local economy (80% vs. 69%), compared to all respondents.
Singapore’s MMEs report and forecast similar revenue growth and profit margins to the global average.
1.4.2 Market opportunities and threats
Compared with global survey respondents, Singapore’s MMEs see:
1.4.3 MME strategies and investment priorities, next three years
Compared with global survey respondents, Singapore’s MMEs forecast:
The study was commissioned by HSBC Holdings plc and conducted by Oxford Economics.
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