Panel: Singapore SMBs lack business continuity plans

There is a general lack of awareness among small and medium enterprises (SMEs) in Singapore of business continuity management (BCM) strategy and measures, said key executives from the Singapore Business Federation (SBF) at a seminar today hosted jointly by the SBF and the Association of Small and Medium Enterprises (ASME).

The one-day event was part of the SBF's efforts to drive BCM awareness among Singapore companies. A survey conducted by the SBF on Singapore companies' understanding of BCM found that while 85 per cent of 328 respondents indicate that they were aware of BCM, only half had a business continuity plan (BCP) in place.

For the other half of the respondents, the reasons they gave for not having a BCP included: a lack of knowledge and expertise; the fear of high development and maintenance costs; the belief that it was not necessary; a lack of top management support; and, ignorance of BCM as a business strategy.

Both associations stressed that the relatively small size of an SME can be severely impacted by a flu pandemic. Employees within an SME typically take on multiple roles. If one falls ill and has to be quarantined for a long period of time, the effect on the company's earnings and confidence with its partners or suppliers can be devastating. SBF CEO Teng Theng Dar stressed the importance of SMEs being prepared with BCM as "90 per cent of Singapore's businesses are SMEs."

The seminar attendees also were urged to participate in the National BCM Programme and to achieve SS540 certification, a framework recognised by the Singapore government. The SBF is the driving body for the programme, which was set up at the start of the year. SMEs can apply for government support to help defray the costs associated with becoming BCM ready.

SMEs with BCM certification can actually enhance their standing in their respective industries. "When a company has in place a robust BCM plan, staff, customers and suppliers will be reassured that its business can effectively manage the unexpected, and recover quickly from the crisis. This in turn will help to build confidence in the company," said Lawrence Leow, president, ASME.