World Economy

Singapore Business Confidence Falling

Singapore Business Confidence FallingSingapore Business Confidence Falling

Sentiment surrounding Singapore’s economy remained dim in June, according to the latest LMD-Nielsen Business Confidence Index survey, as almost all respondents believe that the state of the economy will ‘stay the same’ (55%) or deteriorate (44%).

In terms of business prospects, 12% and 14% of those polled expect to witness improvements in the short and long terms respectively with survey respondents expressing a range of views, todayonline reported.

One executive finds it difficult to say if business activities will improve in the coming months “due to the constant changes in government policies.”

In contrast, another corporate executive observes that “several business opportunities seem to be arising in the country especially in the tourism industry.”

The leading business magazine reveals that the investment climate is viewed unfavorably by the majority of survey participants as 63% consider it to be ‘poor’ or worse, compared to only 3% of respondents who hold a positive view.

In one businessperson’s opinion, the risk of investment is too high “due to a lack of trust in both the economy as well as the investment climate.”

This sentiment was echoed by another respondent, who said: “We do not expect the investment climate to improve anytime soon due to inconsistent decision making and constant policy changes by the government.”

Meanwhile, in the face of uncertainties wrought by trade tensions around the world, Prime Minister Lee Hsien Loong has urged Singaporeans to build up the country’s economy, investments, skills and productivity.

Speaking to about 300 overseas Singaporeans and their families at the Les Salon de l’Hotel des Arts et Metiers in Paris on Saturday, Lee said tit-for-tat trade wars affect Singapore as a trading nation.

“There is tension in the air… If trade is down, I think that strikes at the root of our prosperity and our economic vitality,” he said.


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