Singapore businesses see the cost of unnecessary office space as one of the major burdens borne through the global economic downturn, according to the global Regus Business Confidence Index.
Businesses in the nation are mindful of the need to contain costs in the quest for sustainable growth and see paying for unnecessary office space (54 percent) and difficult access to cost effective capital (47 percent) as the main reasons for corporate distress during the downturn.
The global Regus Business Confidence Index also shows that Singapore business confidence has bounced back five index points to 122 since September.
This jump has inverted the decline recorded between March and September 2011.
Moreover, the Regus Business Confidence Index indicates that companies reporting revenue growth remained stable at 56 percent, while companies reporting profit growth (50 percent) increased six percent.
In a bid to cut overheads, Singapore firms intend to use pay-as-you-go business services, increasing flexible workspace and a shorter supply chain over the coming months.
About 39 percent of those surveyed cited a wider distribution of customers and 38 percent said more flexible working conditions for staff would make the greatest contribution to enhancing future business stability as a platform for growth.
The global Regus Business Confidence Index is 107 for small businesses and 124 for large firms.
"Finally, after a significant setback between March and September 2011, business confidence is beginning to grow again," said FilippoSarti, Regus CEO for Asia Pacific.
"With solutions readily available on the market for flexible workspace arrangements, there is no doubt that the number of businesses benefiting from more nimble and scalable arrangements will increase in the coming years."
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