Singapore firms stick to their guns as they continue to eye China for growth

POOR domestic demand and weak cost conditions, which recently saw China’s inflation turn negative, are posing a headache for Singapore companies in the consumer sector there.

Denise Cheok, a Moody’s Analytics economist, noted: “Households are still wary of spending, especially on discretionary goods, and retailers are slashing prices in response.”

Yet Singapore businesses that have ventured into China are sticking to their guns.