By ZEINAB YUSUF

BOSSES of Singapore's small and medium-sized enterprises (SMEs) are less optimistic about economic growth this year than their peers elsewhere in the Asia-Pacific, according to a survey released yesterday.

Now in its fifth year, the UPS Asia Business Monitor (ABM) 2009 surveyed 1,200 SME leaders in 12 regional markets, including 100 bosses in Singapore.

The majority of respondents (66 per cent) here said that they sometimes stay awake at night pondering the challenges arising from the economic downturn. On the other hand, 54 per cent of them reckon the global economy will rebound by 2010.

While navigating the current crisis, local entrepreneurs are focusing on three key areas for long-term growth - exploring new markets, moving to higher value-added products and services and boosting in-house talent.

Across the Asia-Pacific, SMEs in Singapore are most optimistic about China, with 75 per cent of those surveyed here seeing China's growing economic might as a boost to their business - a far cry from the regional average of 46 per cent.

A concern shared by 61 per cent of Singapore respondents is the rising cost of goods and services, which has prompted 68 per cent of respondents here to cut costs such as rent and utilities.

Despite the cost challenge, 70 per cent of Singapore SMEs see no change in the size of their work force, compared with a regional average of 65 per cent.

Only 15 per cent of SMEs across the 12 countries surveyed plan to cut their work force. More than 90 per cent of respondents said that the availability of qualified workers is the most important determinant of competitiveness.

Increased government funding for training is the strongest motivator for SMEs here to send employees on and development courses, according to 66 per cent - a strong endorsement of government support in this area.

Looking forward, SMEs see Singapore's top three economic pillars over the next three to five years as financial services (43 per cent), leisure and tourism (33 per cent) and health care and pharmaceuticals (31 per cent).

The survey on the attitudes and habits of SME bosses across the region covered a range of industries, including automotive, health care and pharmaceuticals, electronics and house wares.

The survey found the average SME respondent has been in business 22.6 years.

This article was first published in The Business Times.