The OCBC SME Index for the third quarter of 2026 has remained in expansion territory, registering a score of 51.9. This growth is largely driven by outward-oriented sectors such as Information and Communications Technology (ICT) and Manufacturing, which have benefited from strong demand in trade, electronics, and artificial intelligence-related industries. The index, which uses transactional data from over 100,000 OCBC Bank SME customers, indicates that whilst most sectors have shown improvement, the pace of growth remains uneven.
According to Elaine Heng, Head of Global Commercial Banking at OCBC, “The OCBC SME Index remained expansionary in the third quarter, underpinned by strong momentum in outward-oriented sectors whilst growth across domestically oriented sectors has been more measured.” The index’s findings are supported by the OCBC SME Business Outlook poll conducted in September, which revealed that 35% of respondents reported improved business conditions compared to June.
Despite the positive overall trend, SMEs face challenges such as elevated cost pressures in energy, logistics, and manpower. These factors are contributing to increased transactional values, reflecting both higher prices and improved business activity. The GDP nowcast based on the index aligns closely with the Ministry of Trade and Industry’s advance estimates, at approximately 5.3%.
Looking forward, the outlook for SMEs is expected to remain varied across industries. Those able to manage costs, enhance productivity, and leverage technology are likely to seize emerging opportunities. The poll also highlighted that 42% of SME business owners anticipate better conditions in the near term, with optimism particularly strong among outward-oriented SMEs.
