About 2 in 5 Singapore firms confident about business growth in 2016: survey

They’re more upbeat than Hong Kong, Japan companies.

Singapore businesses are confident about business growth in 2016 despite the global economic slowdown, according to the Compass Index.

The index, which was conducted by office space provider Compass Offices, measured business trends in nine different countries in Asia Pacific. The respondents are from a cross-section of startups, small medium enterprises, and multinational firms.

The survey notes that with China’s economic slowdown, the International Monetary Fund (IMF) has forecast that global growth to come in at 3.4% this year. On top of this, the IMF shared a weakened outlook for the next six months.

Meanwhile, the Asian Development Bank forecast the Asian region to post 5.7% annual GDp growth, slightly easing from 5.9% last year.

Despite this, over 2 in 5 (43%) locals remain confident over their business growth this year.

This makes Singapore the second most optimistic about business growth in 2016. Australia topped the rankings with 51%, while Hong Kong came in third with 30%. Japan posted the lowest score in the region at 15%.

“Our Index shows that businesses are optimistic about their growth this year. However, to stay on top of their game, they will need to reconsider where their investment is and reinvent new ways of working, to be more adaptable to economic conditions,” said Andrew Chung, CEO of Compass Offices.

Moreover, employment growth is expected to slow this year.
However, the index reveals over 6 in 10 (61%) of Singapore businesses intend to hire this year. Australia and Hong Kong come in second and third in this area, with 56% and 44% respectively.