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Singapore business confidence slumps

SINGAPORE — Local business sentiment has slumped amid concerns over rising global economic uncertainties, with a key measure of confidence showing companies here at their most pessimistic in a year and the second most pessimistic in four years.

SINGAPORE — Local business sentiment has slumped amid concerns over rising global economic uncertainties, with a key measure of confidence showing companies here at their most pessimistic in a year and the second most pessimistic in four years.

The quarterly Business Optimism Index (BOI) fell to negative 1.22 percentage points for the first quarter of next year from plus 2.87 percentage points in the fourth quarter of this year, the Singapore Commercial Credit Bureau (SCCB), which compiled the index, said yesterday. It is also the first contraction since the first quarter of last year, when the index was at negative 2.93 percentage points.

The wholesale trade and financial sectors are among the most pessimistic, while the services sector is the most optimistic. As with 2016, global economic uncertainties have been highlighted as the main challenge in 2017 facing local firms, accounting for 60 per cent of the firms being surveyed, the SCCB said.

SCCB’s chief executive Audrey Chia said: “We are expecting business confidence to remain muted moving into 2017. As downside risks have prevailed in light of the recent spate of global events, the overall sentiments among the local business community are likely to remain in the doldrums in the coming months.”

“The downward trend is most evident in externally-oriented sectors such as wholesale and financial services. For 2017, firms are projected to cut back on investments for business expansion. Lack of financing, higher business costs and reduced sales are some of the key challenges which have also been highlighted by local firms.” Angela Teng

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