SINGAPORE – The business expectations of Singapore firms in both the manufacturing and services sectors improved as ongoing Covid-19 vaccinations across countries raised global economic prospects.<\/p>\n
Their more upbeat sentiments were captured in the latest quarterly surveys released separately by the Economic Development Board (EDB) and the Department of Statistics (SingStat) on Friday (April 30).<\/p>\n
A weighted 41 per cent of manufacturers see business conditions improving over the next six months, while a weighted 3 per cent foresee a weaker business outlook, the EDB survey showed.<\/p>\n
Thus, a net weighted balance of 38 per cent of manufacturing firms anticipate a favourable business situation from April to September. This compares to 36 per cent of firms in the previous quarter’s poll.<\/p>\n
A weighted percentage refers to an aggregate of the responses of manufacturers based on their proportion of the manufacturing sector.<\/p>\n
The electronics cluster was the most optimistic, with a net weighted balance of 66 per cent of firms having a positive business outlook.<\/p>\n
This sentiment was driven mainly by the semiconductors and other electronic components segments, which project higher export orders on account of robust demand from 5G markets, said EDB.<\/p>\n
The services sector also grew more optimistic, with a net weighted balance of 11 per cent of firms expecting a more favourable business outlook, an improvement on the 7 per cent that was seen in the previous survey by SingStat.<\/p>\n
Within the services sector, the information and communications, finance and insurance, and wholesale trade industries are among those that expect business conditions to improve for the next six months.<\/p>\n
But the accommodation and retail trade industries expect weaker business conditions ahead.<\/p>\n
On the accommodation front, hoteliers expect slow pick-up in demand due to continued entry restrictions and border closures.<\/p>\n
In the retail trade industry, department stores and supermarkets are less optimistic in their business outlook.<\/p>\n
Overall, the services sector expects an increase in hiring activity for the second quarter this year, with a net weighted balance of 6 per cent of firms indicating as such.<\/p>\n
The recreation, community and personal services industry as well as the information and communications industry expect an increase in employment in the next three months, until June.<\/p>\n
Conversely, firms in the accommodation industry expect lower employment level in view of weak demand.<\/p>\n
In the manufacturing sector, a majority of firms – a weighted 77 per cent – expect the employment level in the second quarter of this year to remain similar to the first quarter.<\/p>\n
For the manufacturing sector, a net weighted balance of 9 per cent of firms plan to hire more workers in the second quarter of this year.<\/p>\n
The biomedical manufacturing, electronics and precision engineering clusters were the most optimistic in their employment outlook.<\/p>\n
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