Business sentiment in Singapore at an all-time low: Study

Business sentiment among Singapore firms has plunged to an all-time low as the coronavirus outbreak shows no signs of ending.

The construction, manufacturing and services sectors are the most gloomy about their outlook for the second quarter of this year, according to the Singapore Commercial Credit Bureau's (SCCB's) latest study out yesterday.

Overall business sentiment tumbled to -7.88 percentage points for the second quarter, down from 5.31 percentage points in the previous quarter. All six of the study's indicators reported negative numbers.

On a yearly basis, the index fell 12.96 percentage points from +5.08 percentage points, compared with the first quarter of last year.

The figure is the lowest since SCCB started polling businesses for the study in the third quarter of 2010.

CAUSES

The slide in optimism was caused by negative spillover effects of heightened health risks posed by the coronavirus, slowing Chinese demand and the disruption of supply chains, said Ms Audrey Chia, SCCB's chief executive officer.

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Selling price, volume of sales and new orders fell the most.

Selling price slid 17.42 percentage points to -8.46 percentage points in the second quarter from +8.96 percentage points in the preceding quarter.

Volume of sales dropped 16.92 percentage points to -9.95 percentage points from +6.97 percentage points; and new orders fell 16.42 percentage points to -12.44 percentage points from +3.98 percentage points.

The Business Optimism Index study, which is done every quarter, polled 200 business owners and senior executives representing major industry sectors across Singapore. Only the transport and finance sectors showed positive indicators.

Transport's only positive indicator is inventory levels, which jumped to +42.86 percentage points from -14.29 percentage points.

Net profits was the sole positive indicator for the finance sector, down to +16.67 percentage points from +100 percentage points.

The services sector saw volume of sales sentiment diving to -51.61 percentage points from +54.84 percentage points while net profit dropped to -19.36 percentage points from +54.84 percentage points in the first quarter this year. - THE STRAITS TIMES