Business confidence amongst small and medium-sized enterprises (SMEs) remains strong in Asia, HSBC's recently published Small Business Confidence Monitor has revealed.

The poll, which was conducted for HSBC Commercial Banking in May and June 2010, and covered more than 6,300 SMEs in 21 global markets, employs an index system (ranging from 0-200, where 0 indicates the lowest level of business confidence, and 200 the highest).

For the first time since the global economic crisis, according to HSBC, all Asian markets reported a positive outlook in terms of local economic growth, recruitment, and capital investment, and overall, across the region, confidence levels were 121 (representing a small dip from the 122 reported in Q4 2009, but positive nonetheless).

According to the findings of the survey, Vietnam maintained high levels of confidence, with an index figure of 164 reported, whilst mainland China reported 123, India, 121, and Taiwan returned to positive territory, with a 6 point climb from 97 to 103 in the confidence index.

However, it was Singapore that showed the largest increase in confidence between the last poll in 2009, and the newest version of the survey, with a 19 point climb from 117 to 136.

HSBC revealed that in terms of economic growth, the majority of Singapore's SMEs are bullish on the local economy, with 57% (increased from 39% in late 2009) anticipating that the pace of economic growth will speed up, and 37% (versus 50% in Q4 2009) expecting it to maintain its current momentum over the next half-year. Only 6 per cent (down from 11% in the fourth quarter of last year) stated that they expected the pace of growth to slow. These figures compared to 34% of SMEs globally and 35% in Asia which reported that they expected an increase in the pace of economic growth. In Western Europe, however, only 10% expected the pace of economic growth to increase.

In terms of capital expenditure, Singapore's SMEs were also confident, according to the HSBC poll.

42% (up from 30% in Q409) revealed that they were planning to increase their investment in their own businesses, 54% stated that they would maintain current levels (again increased, from 47%, in the last quarter of 2009), and just 4% announced that they were planning reductions in capital expenditure (representing a significant drop from 22% in Q4 2009). Globally, 41% of those questioned revealed plans to increase capital expenditure, and in the Asian region, 39% stated that they were planning to spend more.

Questioned on recruitment issues, almost all of the Singaporean SMEs consulted said that they planned to expand or maintain staffing levels (23% and 75% respectively) over the coming six months, with just 2% planning to cut staff over that period. According to the poll results, recruitment plans are positive for SMEs across all markets, with 26% globally and 24% across Asia planning to take on more staff in the next 6 months.