Deteriorating business outlook hammer Singapore manufacturers

8% of manufacturers expect business to worsen.

In spite of a potential upward revision in manufacturing growth figures, Singapore manufacturers are still not seeing the light at the end of the tunnel.

According to data released by the Singapore Economic Development Board, a weighted 7 per cent of manufacturers expect business conditions to improve while a weighted 8 per cent foresee a deterioration. Overall, a net weighted balance of 1 per cent of manufacturers expect a less favourable business situation in the next six months ending March 2014 compared to the third quarter of 2013.

Within the manufacturing sector, the general manufacturing industries cluster is the most optimistic with a net weighted balance of 17 per cent of firms expecting an improved business situation in the next six months. The food, beverages and tobacco segment anticipates higher orders in view of the upcoming festive seasons.

In the miscellaneous industries segment, manufacturers in the construction related industries expect positive business sentiments on account of more public construction projects awarded. The biomedical manufacturing and transport engineering clusters also foresee a better business environment in the six-month period ending March 2014, compared to a quarter ago.

The electronics cluster is the least upbeat about business conditions in the six months ahead. A net weighted balance of 14 per cent of electronics firms project a less favourable business situation in view of lower orders due in part to seasonal factors. 

Likewise, a net weighted 5 per cent of the precision engineering firms expect a soft outlook in the next six months ending March 2014. In the chemicals cluster, a net weighted 4 per cent of firms foresee weak business conditions ahead, particularly in the petroleum segment which expects a further decline in refining margins.