Singapore firms don't see skies clearing in next two quarters

But gap between pessimists and optimists narrowing, according to official quarterly surveys

Janice Heng

Published Fri, Oct 30, 2020 · 09:50 PM

Singapore

SINGAPORE firms expect business conditions to be worse in the next two quarters compared to the third quarter of 2020, though the gap between pessimists and optimists has been narrowing, according to official quarterly surveys on Friday.

The improvement was clearest in the services sector, where a net-weighted balance of 5 per cent of firms expect worse conditions during October till March 2021 - which is still better than 31 per cent in the previous survey, which covered expectations for July till December 2020.

But within the sector, expectations - for business conditions, operating receipts, and employment - have diverged according to industry.

In manufacturing, a net-weighted balance of 3 per cent expect the operating environment to worsen compared to the third quarter, compared to 7 per cent in the last Singapore Economic Development Board (EDB) survey. Yet hiring sentiment remains subdued overall, even in ind…