Mixed reviews for Singapore business prospects

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According to the Singapore Commercial Credit Bureau (SCCB), Singapore’s Business Optimism Index (BOI) score fell to the second-lowest in two years. It has been reported that the two main reasons for this are concerns over global political headwinds and less regional demand in the external-oriented sector.
According to the Singapore Commercial Credit Bureau (SCCB), Singapore’s Business Optimism Index (BOI) score fell to the second-lowest in two years. It has been reported that the two main reasons for this are concerns over global political headwinds and less regional demand in the external-oriented sector.

The SCCB conducts its ‘Business Expectations Survey’ every quarter. Each quarter, 200 business owners and senior executives representing major industry sectors across Singapore are polled on: their expectations, increases or decreases in their upcoming sales, profits, employment, inventories and selling prices.

Singapore’s BOI score dropped by just over 10% in the fourth quarter of 2014, to +1.11 percentage points in the latest first quarter findings. Services and agriculture were ranked as the two most optimistic sectors, with at least four business indicators in the expansionary region, the report stated.

Looking forward into 2015, Ms Audrey Chia, SCCB’s Chief Executive Officer, states that a ‘significantly higher proportion of firms maintaining their current level of investments for business expansion, both domestically and externally, is expected. A good sign is that local firms are not cutting back on investments and are more likely to shift their investments towards keeping their business productive, which may involve skills upgrading employees or of machineries and capital equipment’, she added.