Singaporeâ€™s Economic Development Board (EDB) has reported a sustained and positive outlook for the economy in the second half of 2010 from the findings of a latest survey.
Online PR News – 19-August-2010 – – Singaporeâ€™s Economic Development Board (EDB) has reported a sustained and positive outlook for the economy in the second half of 2010 from the findings of a latest survey.
EDB revealed that 25 per cent of manufacturers expect the market to keep growing. 7 per cent of the manufacturers expect a slow down in the economy.
Overall, 18 per cent of manufacturers anticipate better business prospects for the third quarter of 2010 as compared to the second quarter.
Despite the optimism in the market, the forecast of a slowdown in economic growth in the second half of the year has resulted in manufacturing clusters generally reported smaller positive net balances for business sentiments compared to an earlier survey last quarter.
33 per cent of businesses in the electronics cluster within the manufacturing sector hope to see an improved business situation in the second half of the year.
This sentiment comes as companies anticipate sustained demand for consumer electronic products such as wireless handsets and mobile computing devices.
This positive outlook is echoed by 19 per cent of the manufacturing firms in the chemicals cluster, as specialities and other chemicals segments project higher demand in the coming months.
However, the petrochemical segment sees a muted growth resulting from weaker margins from excess capacities in the region.
In addition, 15 per cent of manufacturers expect output to increase in the third quarter.
The electronics cluster leads output optimism with 45 per cent of firms projecting a higher level of production in the third quarter due to higher export orders surging in from year-end holiday season.
On an overall note, manufacturing industries and precision engineering clusters also project higher output levels over the next three months.
However, the transport engineering cluster does not look so sunny, as it is projecting a lower level of production in the third quarter. This comes as a result of the marine and offshore engineering segment forecasting only a modest number of secured new orders.
With plant maintenance shutting down and a different mix of active pharmaceutical ingredients to be produced, the biomedical manufacturing cluster will also set a lower production margin.
In terms of employment, 7 per cent of manufacturers expect to hire more workers in the third quarter, with the increase of jobs largely found in the precision engineering and electronic clusters.
27 per cent of businesses say global price competition remains a significant factor that restricts manufacturersâ€™ from obtaining more export orders in the third quarter.
9 per cent of firms also believe that political economic conditions contribute as a limiting factor for them to secure more orders.
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