S’pore expects biz sentiments to be cautiously positive in 1H24
The Singapore manufacturing sector expects business sentiments to be cautiously positive in the first half of 2024, according to the republic’s Economic Development Board (EDB).
The EDB’s expectations are based on the recovering global semiconductor industry that will lend some support to demand amid continued geopolitical and economic headwinds.
“A weighted 21 per cent of manufacturers expect business conditions to improve while a weighted 11 per cent foresee a weaker business outlook.
“Overall, a net weighted balance of 10 per cent of manufacturing firms anticipate an improved business situation for the January-June 2024 period, compared to the fourth quarter of 2023,” EDB said in a statement.
The Survey of Business Expectations of the Manufacturing Sector for the first quarter of 2024 was conducted by the board between December 2023 and January 2024.
Out of a total of 418 manufacturing establishments surveyed, 89 per cent responded, said EDB, a government agency under the Singapore Ministry of Trade and Industry.
Overall, EDB said a net weighted balance of 6.0 per cent of manufacturers expect lower output in the first quarter of 2024, compared to the fourth quarter of 2023. “All clusters
except transport engineering and chemicals project a lower level of production,” it said.
On employment forecast for January-March 2024, EDB said a majority of firms (a weighted 83 per cent) in the manufacturing sector expect employment levels in the first quarter of 2024 to remain similar to the fourth quarter of 2023. “Among the manufacturing clusters,
the biomedical manufacturing cluster is the most optimistic in its employment outlook while the precision engineering cluster is the least optimistic,” it said.
As for the factors affecting export orders for January – March 2024, EDB said a majority of firms (a weighted 77 per cent) in the manufacturing sector reported no limiting factors that would affect their ability to
obtain export orders in the first quarter of 2024.
“Among the firms that anticipate challenges in obtaining export orders, the top two limiting factors cited are price competition from overseas competitors and political or economic conditions abroad, such as geopolitical tensions or conflicts and inflationary pressures,” EDB said. — Bernama