What crisis? Over 7 out of 10 firms still bullish on Singapore economy, says HSBC

Companies are upbeat on their trade outlook.

Singaporean companies are still unfailingly positive about the local economy despite slower growth, the very real possibility of a technical recession, and intensifying external headwinds.

HSBC’s latest Trade Confidence Survey showed that more than 70% of companies expected stable or positive economic growth in Singapore, compared to 60% who expressed similar views for the global economy.

Companies in Singapore are positive about their six-month business and trade outlook, with client acquisition and international expansion being key drivers of growth. 

Despite their long term focus on international opportunities, Singapore companies are currently more bullish on achieving growth domestically, according to the survey.

The companies said they expect positive developments in the local economy to result in stronger demand for their products and increased profits margins. Still, strong competition and higher cost of labour and materials remained as major concerns.

In the international stage, main concerns include strong competition, declining economic growth and unfavorable exchange rates.

“The local economy is still expected to grow despite global economic headwinds and this, together with Asia’s increasing adoption of a more open economic framework, presents sizeable opportunities for Singapore businesses,” said Steven Cranwell, Head of Commercial Banking for HSBC in Singapore.

The survey covered 132 businesses in Singapore with an annual turnover of between US$10 million to more than US$500 million.