Singapore’s small and medium-sized enterprises (SMEs) are facing significant financial challenges in 2025, with rising costs and economic uncertainty impacting cash flow. According to Syfe, a leading savings and investment platform in the Asia Pacific, these businesses are losing an estimated SGD 800 million annually by leaving idle cash in low-yield bank accounts. A recent survey by Syfe of 350 Singaporean SMEs highlights that nearly half prioritise guaranteed returns (48%) and liquidity (45%), yet many still rely on traditional banking solutions.
The survey reveals that the average SME holds less than 11 months of cash reserves, making them vulnerable to economic disruptions such as rising interest rates and inflation. To manage cash reserves, SMEs prefer strategies like money market funds, standard business bank accounts, and reinvesting in operations.
In response, Syfe, in partnership with Wallex, has launched Syfe Earn, a cash management solution offering returns of up to 3.5% with next-day fund access and no lock-in period. This initiative aims to help SMEs unlock the value of their idle cash and build financial resilience. Jack Prickett, Chief Commercial Officer at Syfe, stated, “By empowering businesses with smarter financial solutions, we can help them build the resilience needed to navigate challenges and drive growth.”
Syfe Earn is designed to support a diverse range of businesses, offering competitive returns and addressing the need for liquidity. Hiro Kiga, General Manager at M-DAQ Global and Co-Founder of Wallex, added, “We’re excited to partner with Syfe to introduce this new feature, enabling businesses to transform their Wallex wallet funds into a steady, low-risk source of returns.”
The survey polled SME business owners aged 25 and above in Singapore, with cash reserves ranging from SGD 100,000 to 20,000,000, to understand their cash management strategies and challenges.
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