Singapore manufacturers expect negative business conditions in H2

Overall, firms also expect to hire fewer workers.

As a whole, Singapore manufacturers expect business conditions to turn sour in the second half of 2016, according to figures by the Economic Development Board (EDB).

EDB polled 432 Singapore manufacturers, and from the 95% that responded, a weighted 77% of firms in the manufacturing sector expect business situation in H2 to stay similar to a quarter ago. A weighted 11% of manufacturers anticipate improved business conditions, while a weighted 12% project a deteriorating business outlook.

Overall, a net weighted balance 1% of manufacturers expects a less favourable business situation for July-December 2016, compared to 2Q16.

In terms of employment, a net weighted balance of 12% of firms plan to hire fewer workers in Q3, compared to Q2.

Meanwhile, a weighted 67% of manufacturing companies reported no limiting factors that will affect their ability to nab direct export orders in Q3.

The weighted 30% of firms that indicated export constraints cited price competition from overseas competitors as well as economic and political conditions abroad as the most important limiting factors.