1 in 4 services firms optimistic about the future

Meanwhile, 6% of services firms see a decline in business conditions.

A quarter of Singaporean firms in the services sector have a favourable business outlook for the period of October 2021 to March 2022, according to Q4 Business Expectations Survey of the Singapore Department of Statistics (SingStat).

This is offset by 6% of firms expecting worsening business conditions, for a weighted net balance of 19%, higher than the 11% recorded in the previous two quarters.

Firms in the transportation and storage industry are the most optimistic, due to the vaccinated travel lanes opened to more countries.

This was followed by the finance and insurance industry, in anticipation of better global economic conditions.

Firms in retail trade and F&B expect higher operating receipts in the fourth quarter due to the year-end festive period.

The services sector as a whole expects an increase in hiring activity for the fourth quarter, with a net weighted balance of 10%. Hoteliers, in particular, expect to hire more workers to support the increased demand from foreign tourists and the year-end school holidays.