How prepared are Singapore’s SMEs for business interruption?

Only a fifth of businesses claim they have adequate insurance coverage.

About 74% of Singapore small and medium enterprises (SMEs) are concerned over business interruption losses, but only 23% have insurance coverage for it, according to QBE’s Singapore SME Survey.

Similarly, 72% worry about inventory loss, but just 29% are insured against it. Concerns about fraud stand at 72%, yet only 17% have relevant policies.

The survey was conducted between December 2024 and January 2025, with 600 business decision-makers sharing insights on workplace safety, talent retention, and insurance-related concerns.

Price remains the top factor influencing insurance decisions, with 70% of SMEs prioritizing cost, followed by 68% seeking policies that support business operations. This shift reflects a more cautious financial outlook compared to last year.

Whilst workplace safety and health (WSH) awareness remains high, there has been a slight decline. In 2024, 81% of SMEs communicated WSH benefits to employees, compared to 78% in 2025. 

Similarly, those informed about work injury compensation insurance dropped from 70% to 66%. Fewer companies have return-to-work policies, down from 77% to 72%.

Conversely, mental health awareness has increased, with 93% of SMEs considering it important, up from 89% last year.

More companies are offering flexible working hours (59%, up from 44%) and work-from-home options (45%, up from 35%).

Talent retention has become a growing challenge, cited by 49% of SMEs, up from 37% in 2024. 

Flexible work arrangements are now the top strategy for retaining employees, with 51% of businesses adopting them, compared to 32% last year.

Despite concerns over workforce stability, fewer SMEs expect to make staff changes in the next 12 months. 

Plans for staff training (46%, down from 52%), workforce expansion (36%, down from 42%), and business size adjustments (40%, down from 44%) have all declined.

For the first time, the survey examined older workforce employment. It found that 41% of SMEs have workforces where at least 10% are aged 65 or older. SMEs recognise this demographic for their experience (44%), loyalty (39%), and stability (31%). 

With Singapore’s ageing workforce projected to grow, employers may need to implement policies and insurance measures to address evolving workforce risks.

QBE Singapore CEO Ronak Shah emphasised the importance of adapting to workforce changes, noting that the increasing employment of older workers presents both opportunities and challenges. 

He highlighted that beyond salaries, SMEs value work-life balance and flexible arrangements to attract and retain talent in an evolving business landscape.