While a significant number of small and medium enterprises (SMEs) in Singapore express concern over business disruptions, a new survey reveals that most are underinsured against such risks.
According to the QBE Singapore SME Survey, conducted between December 2024 and January 2025, 74% of SMEs are worried about business interruption losses, but only 23% have insurance coverage for it. The survey, which gathered insights from 600 business decision-makers, also found that 72% of SMEs are concerned about inventory loss, yet only 29% are covered for this type of risk. Additionally, concerns over fraud affect 72% of businesses, but only 17% have policies to address this threat.
Cost Concerns Drive Insurance Decisions
Price remains the primary factor influencing insurance decisions among SMEs, with 70% of respondents citing cost as their top priority. Additionally, 68% of businesses prefer policies that support their operational needs, reflecting a more cautious financial outlook compared to previous years.
Workplace Safety and Health Awareness Declines Slightly
While workplace safety and health (WSH) awareness remains high, there has been a slight decline. In 2024, 81% of SMEs communicated WSH benefits to employees, but this figure dropped to 78% in 2025. Similarly, awareness of work injury compensation insurance decreased from 70% to 66%. The proportion of companies with return-to-work policies also fell, from 77% to 72%.
Rising Focus on Mental Health
On a more positive note, mental health awareness has seen a significant increase. A total of 93% of SMEs now regard mental health as important, up from 89% in 2024. This growing emphasis is reflected in a rise in companies offering flexible working arrangements, such as adjustable hours (59%, up from 44%) and work-from-home options (45%, up from 35%).
Talent Retention Challenges Grow
Talent retention has become an increasing concern for SMEs, with 49% citing it as a challenge, up from 37% in 2024. Flexible work arrangements have emerged as the top strategy for retaining employees, with 51% of SMEs adopting such policies, compared to just 32% last year.
Despite these concerns, fewer SMEs plan to make significant staff changes over the next year. Plans for staff training (46%, down from 52%), workforce expansion (36%, down from 42%), and business size adjustments (40%, down from 44%) all showed declines.
The Ageing Workforce: A New Challenge for SMEs
For the first time, the survey explored the impact of an ageing workforce on SMEs. It found that 41% of businesses employ workers aged 65 or older, with many recognising the experience (44%), loyalty (39%), and stability (31%) this demographic brings. As Singapore’s workforce continues to age, employers may need to implement policies and insurance measures to address the evolving risks associated with this shift.
Adapting to an Evolving Workforce
QBE Singapore’s CEO, Ronak Shah, highlighted the need for SMEs to adapt to these changes, particularly in regard to the increasing employment of older workers. Shah stressed that, beyond competitive salaries, work-life balance and flexible arrangements have become critical factors for attracting and retaining talent in today’s dynamic business environment.
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