Over half of Singapore CFOs expect shrinking profits this year: survey

They’re the most pessimistic in Asia Pacific.

Majority or 53% of chief financial officers (CFOs) in Singapore expect shrinking profits this year, according to the Bank of America Merrill Lynch 2015 CFO Outlook Asia survey.

The survey showed that local CFOs are the most pessimistic group in Asia Pacific, with only 37% expecting profit to rise in 2015 compared with the regional average of 73%.

“Being a small and open economy, Singapore is more exposed to developments globally. With uncertainties looming over the eurozone and China’s growth, coupled with difficult conditions at home, CFOs are finding it challenging to stay competitive,” said Gregory Seow, South East Asia head of Corporate Banking at Bank of America Merrill Lynch.

“Companies are reviewing their investment and expansion plans, opting for a more defensive stance by reining in operating costs and pursuing opportunities to innovate and automate,” he added.