Singapore’s financial sector takes dim view of future

Only 34% believe business outlook will improve.

The Association of Chartered Certified Accountants and the Institute of Management Accountants in their Global Economic Conditions Survey (GECS) said business confidence fell in Singapore during the third quarter with only 18% of businesses reporting confidence gains. GECS is the largest regular economic survey of accountants in the world,

The survey revealed that confidence in the prospects of Singapore businesses were down on the previous quarter with fewer opportunities identified by finance teams.

The GECS research shows that 34% of those surveyed believe their own businesses are improving or are about to do so. Despite this, they remain confident in their own businesses and in the broader economy. That perception has not changed significantly since the second quarter of 2013.

A number of factors have come together to hinder the confidence levels of Singapore’s businesses in their own prospects. Inflation is close to its Q1 highs while pressures on demand and cash-flow are up again. Growth capital has also become less accessible after supply peaked in early 2013.