<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>That's why the 154th donch even dare to mention it in the table!
Published January 31, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Business braces for 6 months of deepening gloom
By CHEW XIANG
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(Singapore)
BUSINESS expectations for the next half year fell dramatically across all sectors of the economy, the Department of Statistics and the Economic Development Board said yesterday.
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</TD></TR><TR class=caption><TD></TD></TR></TBODY></TABLE>In the services sector, which had been expected to compensate for a manufacturing slump, a net weighted balance of 53 per cent of firms surveyed expected conditions to go downhill in the next six months, compared with 15 per cent in the last quarterly survey. The 1,400 enterprises were polled between December and mid-January.
For the manufacturing sector, a net weighted balance of 57 per cent of over 400 firms polled expected conditions to worsen, compared with 28 per cent three months ago. The net weighted balance is the difference between the proportions of positive and negative responses, weighted by the firms' contributions to employment and output.
<TABLE cellSpacing=0 cellPadding=5 width=120 align=left border=0><TBODY><TR><TD><TABLE cellSpacing=0 cellPadding=4 width=200 align=left border=0><TBODY><TR bgColor=#4e6e78><TD colSpan=2 height=8>[FONT=Verdana, Arial, Helvetica, sans-serif]Related articles: </TD></TR><TR bgColor=#d5e9f1><TD>
</TD><TD>[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-2]Click here for Singstat's news release[/SIZE][/FONT]</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>Singapore Manufacturers' Federation secretary-general Gwee Seng Kwong said that the survey results 'came as no surprise'.
'No doubt the US has rolled out some economic stimulus that would help drive the global economy back to its proper order, but we do not expect the economy to recover by the end of 2009. This is because the implemented changes need time to take affect,' Mr Gwee said.
Particularly gloomy within the services sector were hotels - all polled said that they expected the outlook to get worse. The financial services, transport and storage, and retail trade industries were also dismal, with net weighted balances of at least 60 per cent.
As expected, the exports-dependent electronics industry was the most bearish in the manufacturing sector, with 86 per cent thinking that the worst is yet to come. The precision engineering and chemicals industries were also expected to fall further, with 73 per cent and 68 per cent of firms in the respective industries turning negative for the next six months.
Output levels and employment across all sectors were also likely to fall, the surveys revealed, even as employment data released yesterday showed better jobs creation than expected in the fourth quarter of last year.
Bracing for gloom THE Economic Development Board said that a weighted 29 per cent of manufacturers expect a reduction in headcount in the current quarter, with the precision engineering and electronics clusters particularly bearish. About 70 per cent expect factory employment to remain stable. In services, catering and hotels are expected to see the heaviest job cuts, with a net weighted balance of over 30 per cent anticipating lower employment levels. However, financial and business services, and real estate firms remain relatively sanguine, with a net weighted balance of less than 20 per cent expecting lower employment.
Citi economist Kit Wei Zheng said: 'We expect net jobs creation will turn negative within the next one to two quarters, likely peaking somewhere in H2 2009. Manufacturing will likely bear the brunt of the job losses, with financial services, real estate and other services sectors also expected to lose jobs.'
Singapore Business Federation chief executive Teng Theng Dar said that pump priming by the government would help certain sectors, while falling commodity prices and government aid should relieve cost pressures. And expanding into new markets should help buffer companies from the slowdown in the G3 countries. 'Economies like China, the (Gulf Cooperation Council countries), Vietnam and Latin America hold prospects for trade and investment opportunities for Singapore companies in sectors such as infrastructure development and upgrading, education and training, ICT and clean energy,' he said.
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Published January 31, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Business braces for 6 months of deepening gloom
By CHEW XIANG
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
</TD><TD>Email this article</TD></TR><TR class=font10><TD align=right width=20>
</TD><TD>Print article </TD></TR><TR class=font10><TD align=right width=20>
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BUSINESS expectations for the next half year fell dramatically across all sectors of the economy, the Department of Statistics and the Economic Development Board said yesterday.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD></TD></TR></TBODY></TABLE>In the services sector, which had been expected to compensate for a manufacturing slump, a net weighted balance of 53 per cent of firms surveyed expected conditions to go downhill in the next six months, compared with 15 per cent in the last quarterly survey. The 1,400 enterprises were polled between December and mid-January.For the manufacturing sector, a net weighted balance of 57 per cent of over 400 firms polled expected conditions to worsen, compared with 28 per cent three months ago. The net weighted balance is the difference between the proportions of positive and negative responses, weighted by the firms' contributions to employment and output.
<TABLE cellSpacing=0 cellPadding=5 width=120 align=left border=0><TBODY><TR><TD><TABLE cellSpacing=0 cellPadding=4 width=200 align=left border=0><TBODY><TR bgColor=#4e6e78><TD colSpan=2 height=8>[FONT=Verdana, Arial, Helvetica, sans-serif]Related articles: </TD></TR><TR bgColor=#d5e9f1><TD>
'No doubt the US has rolled out some economic stimulus that would help drive the global economy back to its proper order, but we do not expect the economy to recover by the end of 2009. This is because the implemented changes need time to take affect,' Mr Gwee said.
Particularly gloomy within the services sector were hotels - all polled said that they expected the outlook to get worse. The financial services, transport and storage, and retail trade industries were also dismal, with net weighted balances of at least 60 per cent.
As expected, the exports-dependent electronics industry was the most bearish in the manufacturing sector, with 86 per cent thinking that the worst is yet to come. The precision engineering and chemicals industries were also expected to fall further, with 73 per cent and 68 per cent of firms in the respective industries turning negative for the next six months.
Output levels and employment across all sectors were also likely to fall, the surveys revealed, even as employment data released yesterday showed better jobs creation than expected in the fourth quarter of last year.
Bracing for gloom THE Economic Development Board said that a weighted 29 per cent of manufacturers expect a reduction in headcount in the current quarter, with the precision engineering and electronics clusters particularly bearish. About 70 per cent expect factory employment to remain stable. In services, catering and hotels are expected to see the heaviest job cuts, with a net weighted balance of over 30 per cent anticipating lower employment levels. However, financial and business services, and real estate firms remain relatively sanguine, with a net weighted balance of less than 20 per cent expecting lower employment.
Citi economist Kit Wei Zheng said: 'We expect net jobs creation will turn negative within the next one to two quarters, likely peaking somewhere in H2 2009. Manufacturing will likely bear the brunt of the job losses, with financial services, real estate and other services sectors also expected to lose jobs.'
Singapore Business Federation chief executive Teng Theng Dar said that pump priming by the government would help certain sectors, while falling commodity prices and government aid should relieve cost pressures. And expanding into new markets should help buffer companies from the slowdown in the G3 countries. 'Economies like China, the (Gulf Cooperation Council countries), Vietnam and Latin America hold prospects for trade and investment opportunities for Singapore companies in sectors such as infrastructure development and upgrading, education and training, ICT and clean energy,' he said.
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