Caution is still high, though, according to the SBF-DP SME Index which was launched yesterday.

A joint initiative between DP Information Group (DP Info) and the Singapore Business Federation (SBF), the index will help investors and policymakers track sentiments of the SMEs.

Credit sustainability will also be reflected. SMEs are expected to capitalise on the index to make forward- looking judgment calls on procurement.

The index will be released quarterly through SBF and other business-chamber platforms on a subscription basis. It targets the four key sectors of commerce, manufacturing, services and transport/storage – all of which together contribute about 60 per cent to the economy.
Data is collected from more than 3,000 SMEs with annual revenues ranging between $5 million and $80 million to ensure balanced representation.

A similar SME confidence index in India will also help the businesses, banks, policy makers  and other organisations involved in the SME space to get a clearer picture for forward looking 6 months to 1 year.