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BUSINESS confidence among Asian businesses is recovering from the lows since the fourth quarter of 2008, according to HSBC's study of more than 3,400 Small and Medium Enterprises (SMEs), of which 2400 are Asian.

Among the Asian economies, the export-oriented economies which were harder hit by the economic downturn registered lower levels of business confidence.

Singapore companies were the second-least confident in Asia after Hong Kong. However, they were much more optimistic , compared to the end of last year.

'Singapore's open business environment and reliance on global trade means that our SMEs are particularly vulnerable to external shocks,' said Ms Tan Siew Meng, head of commercial banking in Singapore for HSBC on Wednesday.

Developing economies such as Vietnam, India and China held the highest level of business confidence, with high levels of domestic demand continuing to drive their economies even as export levels fell.

While the survey revealed that the favourite business strategy for Singaporean firms this year is to cut costs and freeze expenditures, 44 per cent of respondents were also open to actively diversify their products and services to attract a greater base of customers.

'The proactiveness of our SMEs in taking steps to increase demand reflects the maturity and flexibility of our SMEs,' said Ms Tan.


Source: http://www.straitstimes.com/Breaking...ry_403608.html