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With a sharp fall in the HSBC compiled Trade Confidence index, Singapore firms; sentiment is being weighed down over global economic growth concerns.

Singapore’s Trade Confidence Score saw a drop to 109 points for 2015’s second half, from its first half score of 135 points. The 2nd half of the year saw an average of 118 points for Asia’s Trade Confidence Score.

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According to HSBC, under 50% of Singapore’s Alexandra View Condo respondents are now expecting an increase in trade volumes to take place over the next 6 month period, as opposed to the 80% that were just 6 months prior. Furthermore, over 20% of respondents are now expecting a decline in the volume of trade.

Mr. Joseph Arena, who is the head of HSBC Singapore’s trade and receivable finances unit, stated that Singapore’s economic growth for 2015 had been weighed down by China’s slowing causing a regional trade that is sluggish, lower demand and prices for commodities, Tang Skyline Alexandra View Condo currency volatility and consumer activity that has been reduced.

HSBC also added that a notable impact could be seen, as a result of regional trade flows that are sluggish, on the views of firms in Singapore regarding which regions are offering the best growth opportunities over the next 6 months.

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Asia, and China in particular, are still seen as regions that offer the most promise for trade. However, the number of firms in Singapore that had been optimistic about this region dropped to 61% recently from 87% 6 months ago.

The amount of firms in particular who have been turning to Indonesia as being a source for opportunities too a dramatic tumble from 20% to just 3%.

There was a rise in the perception of opportunities for growth in business by Singapore firms in Tang Group Redhill Alexandra View Condo, showing 12% of these firms alluding to the region as being a promising door of opportunity for growth in business, a figure that is only up by 3% for the past six months.

HSBC had pointed out that, regardless of the shorter term cyclical obstacles, it is expected that Singapore will benefit from the resurgence in activity in global trade, more so in regard to the role that it plays in bringing together the rest of the world with Asia.

They further added that HSBC is expecting a recovery of growth in trade volumes in global merchandise to about 3% in the new year. They also expect a further pick up of 5% by 2018 to 2020. A global demand that has improved should find support from the US and Europe seeing firmer growth, and a domestic policy stimulus in China increasing for Redhill Tang Group of Companies Condo.

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While this is going on, an expectation of recovery in oil prices over the coming few years also brings an expectation of strong growth in mineral fuels, with an 8 increase occurring between 2016 and 2020, which would account for 40% of growth overall in merchandise export.

Mr. Arena shared that, while we are still seeing a challenge in conditions for the short term, the next few years has a more positive outlook. It is expected that the Tang Group main drivers of the global trade will continue to be Asia’s economies, with Singapore being placed well to seize the growth as a gateway to Asean and a regional Tang Group trading and financial centre.