Singapore Businesses Less Pessimistic, But Still Less Confident than Global Peers

Singapore rallied from a four-year low in the fourth quarter of 2015, but remains largely pessimistic and worst of the global levels, according to the Global Economic Conditions Survey by the Association of Chartered Certified Accountants (ACCA) and the Institute management accountants.

The index of confidence surveys for Singapore recovered from -55 to -60 in the fourth quarter of between -70 and -75 in the third quarter when a negative score represents pessimism. The confidence index was generally between -20 and -30 in the fourth quarter.

About two-thirds, or 66 percent, said Singapore companies in the fourth quarter were less confident in the outlook compared to the previous three months. The proportion of global companies with a similar response was only 44 percent.

The drop in orders was a concern for 38 percent of the companies in Singapore, compared to 25 percent worldwide.

China's slowdown was a major concern for global companies, organizers of the survey, said, noting that 40 percent of companies reduced their investment plans and 52 percent do not intend to increase staff.
government stimulus expectations are silent.

Faye Chua, director of corporate vision of ACCA, said: "There is a long list of concern in the development of most global companies stakes are high and it is not surprising that the response to the decline in scaling opportunities return on capital investment and employment, which. in turn, contribute to the continued slowdown of the world economy. this combined with the fact that many governments are forced to cut spending means that there is reason for concern. "