- SMEs are turning to online resources, AI, to tackle rising prices &, increase productivity
- Malaysia &, Australia travel IT assets, with F&, B, IT &, technology solutions seeing biggest increases
Instarem, part of Nium, Southeast Asia’s payments unicorn, launched its 2024 SME Spend Barometer, revealing insights into the spending behaviours of small and medium-sized enterprises ( SMEs ) in Singapore, Australia and Malaysia.  ,
Based on data from a test of 700 SMEs and some subjective interviews with customers, Instarem’s annual SME Spend Barometer record analysed spending patterns from January 2023 to August 2024, highlighting how SMEs are carefully investing in technology, infrastructure, and talent to react to an evolving financial landscape.
A determined method to growth
Trade payments increased by 6 %, indicating a meticulous yet positive outlook for global growth, thanks to Malaysia and Australia. In comparison, trade payments to Singapore decreased by 27 % year over year, indicating that local companies may be shifting their attention away from home goals in the face of rising costs and financial pressures.  ,
Ashish Sangle, world Nose of Instarem, said:” Instarem has supported thousands of businesses in their development journeys over the years. Expanding internationally allows SMEs to gain access to wider user bases and exploit market opportunities for scale and growth. In today’s culture, a little caution is natural, but we anticipate that SMEs will continue to look for and exploit opportunities that are in line with their objectives.
Embracing AI and robotics
As evidenced by a 29 % increase in spending on data services over the same time period in 2023, the implementation of AI and digital change is accelerating across APAC. Malaysia and Australia are leading the charge in IT investments, with sectors like F&, B ( 120 % ), IT and software services ( 66 % ), and business consultancy ( 59 % ) registering the biggest gains.  ,
In order to reduce rising costs and increase efficiency, several SMEs who were interviewed for the record are using AI, automation, and online tools. They are adopting process technology, AI-driven fraud detection, and advanced data analysis, among other alternatives to simplify businesses, minimise regular work, and optimise resources.
However, not every industry is embracing tech at the same rate, with financial services and business services cutting their information services spending by 42 % and 4 %, respectively.
Return to work picks up speed
SME employers in all three markets are reinvesting in physical infrastructure following years of hybrid or remote work, as evidenced by the 16 % increase in office expenses. Sectors like retail and wholesale, as well as business services, have seen office expenses rise by nearly 150 % and 70 %, respectively, suggesting a shift in how businesses are positioning themselves for long-term growth. This rise in commercial real estate demand also accounts for the more than doubled transaction volumes for real estate and leasing between 2023 and 2024.
These patterns are not universal, and some industries, like those in industrial manufacturing and construction (-48 % ), online retail (-44 % ), and telecommunications (-28 % ), are bucking the trend in favor of a more cautious strategy driven by market needs.  ,
Our decision to invest in physical office spaces in Vietnam and the Philippines has been influenced by employee demand for in-office collaboration. By balancing these investments with our offshoring model, Net Fusion Technology’s group managing director George Votava said that while promoting greater collaboration and innovation, the company can better manage costs.  ,
Balancing talent and growth
Despite broader economic pressures, SMEs are n’t scaling back on talent investments, with salary payments up 7 %. In Singapore, salary investments stayed flat, with some sectors, including media and marketing ( 13 % ) and business services ( 3 % ) even increasing their spending on third-parties ( external advisors ) to drive growth. This suggests a strategic shift to increase internal teams without significantly enlarging the field.
According to the country’s Wage Price Index and the 3.7 % increase in the National Minimum Wage, salary payments among SMEs in Australia have increased modestly ( 3 % ), indicating that businesses are placing a premium on retaining key talent while managing costs.  ,
What’s ahead
These findings demonstrate that SMEs are putting their weight on high-impact investments, such as digital transformation, while using measured tactics elsewhere. Resources are still being put under pressure, though, due to challenges like fluctuating exchange rates and high processing costs.
” Managing costs is a top priority for SMEs, particularly in critical areas like talent and expansion”, said , Sangle. ” Thinking strategically about payments can free up important resources for growth and prepare SMEs for long-term success,” according to the statement” not only help to reduce high cross-border fees and improve cash flow.”
For more insights, download Instarem’s 2024 SME Spend Barometer Report here.