Singapore’s economic importance seen to decline over the next three years, say Asian CFOs

But they’re upbeat about other ASEAN markets.

Asian chief financial officers believe that Singapore’s economic importance will decline relative to other ASEAN markets in the next three years, a survey by Deloitte revealed.

The pulse survey revealed that CFOs in the region expect to see growth over the next three years in Indonesia, Malaysia, Myanmar, Philippines, Thailand and Indo-China. Singapore, being the most mature market of the region, is the only country polled to decrease in importance over the next three years.

Singapore (82%) and Thailand (84%) are regarded as the most important markets for the consumer business sector
in the current regional landscape. This is predicted to change in three years. Indonesia will become the key market in the region and Singapore and Thailand are projected to decrease in importance by 2017.

Today, Indo-China, Indonesia, Malaysia and Thailand are recognised as the more established manufacturing bases
in the region. The industry representatives forecast an increase in importance for Indonesia and to a lesser extent
for Myanmar and Thailand. Singapore and Indo-China are expected to reduce in importance.

“Being the most mature market of the region, Singapore is the only country that is polled to decrease in importance over the next three years. Singapore is a smaller market and as such limiting the opportunity for growth relative to its counterparts in SEA,” the report stated.