Services sector upbeat about business prospects in Oct-March

SINGAPORE — The Republic’s services sector expects business conditions to turn more favourable in the six months leading up to March next year, in light of the upcoming year-end holiday and festive seasons that would boost consumer spending, a survey by the Department of Statistics showed yesterday (Oct 30).

The Business Expectations Survey found that a net weighted balance of 7 per cent of firms are optimistic about their prospects, with those in retail trade, food and beverage, as well as accommodation industries emerging the most upbeat.

However, the real estate industry saw more firms anticipating business situation to deteriorate in the October-to-March period. Developers in the survey cited the continued impact of government curbs, such as Additional Buyer’s Stamp Duty (ABSD) and Total Debt Servicing Ratio (TDSR), as reasons for the negative sentiment.

Meanwhile, a separate survey by the Economic Development Board (EDB) in the manufacturing sector showed a majority of firms expect the business climate in October to March to remain the same compared to the past six months.

Within the sector, transport engineering is the most optimistic cluster with a net weighted balance of 9 per cent of companies more upbeat about prospects going forward.

“This positive outlook is mainly led by the marine and offshore engineering segment which foresees a better order book in view of higher demand for oil and gas-field equipment, as well as replacement demand for oil rigs,” the EDB said.

On the other hand, the electronics and precision engineering cluster project deterioration in business conditions in the next six months.