This is my guest post on Singapore Business Review
According to the Business Optimism Index (BOI) conducted by Singapore Commercial Credit Bureau and released early this year, Q1 2015 marks the second-lowest score in two years. Based on their scoring system, Singapore BOI score was +1.11.
Contrast that to +10.79 for Q4 2014 and +33 over Q4 2013. The drop is really significant.
How did this come about? The key concern stem from sentiments towards global political situations as well as softer regional demand in export-oriented sectors.
And in a more recent study conducted by SBF-DP, their six-month forward-looking SME Index is showing slipping business confidence. Importantly SMEs are expecting profits to decline from an Index Score of 5.47 from 5.54.
(Source: Singapore Business Federation)
It doesn’t help that more companies are dragging their payments in the first quarter of 2015 compared to last quarter of 2014. It is usually a role reversal as Q4 would see many decision makers absent due to leave clearance and long holidays back in their native countries. You can’t sign cheques if you are not physically in front of me.
All the signs appear to be pointing to the same direction.
For the rest of the article, please go to Singapore Business Review.