Business condition in Singapore remained 'satisfactory' amidst economic woes

But significant improvement is still scarce.

Amidst certain economic headwinds surrounding countries in Asia, Singapore maintains a generally 'satisfactory' business condition and business leaders are expecting to remain it this way in the near future.

These are just some of the findings from the ASEAN Business Climate Survey 2013, as well as the DIHK's Economic Survey for Early Summer 2013 conducted by the Singaporean-German Chamber of Industry and Commerce (SGC), together with four other German Chambers of Industry and Commerce (AHKs) namely Indonesia, Thaiand, Vietnam, and Indonesia.

The survey was particpated by 160 members. In Singapore, participants were mainly from the service (35.7%) and industry (42.8%) sectors.

The survey noted that most firms in Singapore, ASEAN, and Germany view their current business situation as satisfactory.

Overall, business confidence for Singapore remains stable and positive. A majority of participants ranked overall, economy, capital expenditure, business consumption, and private consumption to be about the same as last year. For the current year, assessments ranged from satisfactory to good concerning the aforementioned criteria.

While the results for the ASEAN region highlight a slight decline in business confidence, German businesses in the ASEAN rate their current environment and their companies' situation as satisfactory to good.

However, Singapore registered stagnant development for this year compared to last year. But despite the absence of any significant improvement, the general consensus is that overall stability, especially considering the current economic circumstances, must be seen as positive.

According to Mr Klaus Borig, the President of the SGC, Singapore is regarded as a solid and reliable base for business in Asia, making it easier for companies to focus on performing well."

He also attributed the optimistic sentiment among business leaders here to the country's standing as a stable business location.

Meanwhile, most firms described their company situation as satisfactory and said that it had not changed since last year, a quarter even saw an improvement. Most expected their situation to be the same in the next 12 months and 30.5% even expected higher sales than last year.

SGC Executive Director Dr Tim Philippi also emphasized the importance of international trade.

"Singapore's role as ASEAN's regional hub makes it an excellent centre for trade and business. It is a door to Asia for German firms and is appreciated as a starting point for starting business in the region," he said.

The majority of participants cited the absence of corruption and the availability of skilled labour as some of the main advantages in Singapore.