SINGAPORE–The Singapore Economic Development Board said Tuesday that business sentiment for Singapore manufacturers in the first half of 2023 remains negative as they experience declining demand for their products amid continuing supply chain challenges and cost pressures. said.
A net weighted 25% of manufacturers expect business conditions to deteriorate in the first half of 2022 compared to the fourth quarter of 2022, according to the EDB. According to the EDB, 31% of his manufacturers expect business prospects to deteriorate, while 6% expect business conditions to improve.
In general manufacturing, a net weighted 25% of companies expect a worsening outlook through June, according to the EDB. Within this sector, companies in the food, beverage, tobacco and other segments are concerned about rising operating costs and expect macroeconomic weakness to weigh on export demand.
The EDB said the net weightings for companies in the electronics and precision engineering sectors were 44% and 13%, respectively, and it expects the economic slowdown to continue in the first half of the year. A net weighted 27% of companies in the biomedical manufacturing sector expect the economy to deteriorate, while a net weighted 5% of companies in the chemical sector expect business conditions to deteriorate.
According to the EDB, the transportation engineering sector is the most optimistic in the manufacturing sector, with a net weighted 21% of firms expecting an improvement in the business climate. It is led by the aerospace sector, which expects demand for aircraft maintenance, repair and overhaul jobs to increase as it continues to recover.
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