Singapore - Singapore's trade confidence falls

Local trading firms have suffered the worst drop in confidence in the region amid the worsening global economy, according to a HSBC survey.

Its trade confidence index for Singapore dropped by 16 points to 105, the most among eight Asia-Pacific countries surveyed in May.

A reading above 100 means that the outlook for traders is positive while one below 100 registers pessimism.

As a sign of how the mood differs across the region, Indonesia recorded a confidence index rating of 144.

Mr Willie Tham, HSBC managing director and head of commercial banking, said yesterday that it was not surprising that companies here were turning more cautious given the global volatility.

But he added that over the longer term, Singapore's prospects remain bright and trading volumes are expected to soar 110 per cent over the next 15 years.

This will make Singapore the ninth largest trading nation by 2025, surpassing Canada, Russia and Spain, said HSBC.

Mr Tham noted that Singapore accounts for 2.2 per cent of global trade now and is expected to maintain its position as a core hub linking China, Hong Kong, Malaysia and Indonesia as well as the United States.

Asia trade volumes will grow 96 per cent to nearly US$14 trillion by 2025 and the region will also be the key driver of world trade growth.

China will be the largest trading nation in 15 years, with trade volumes up 146 per cent, ahead of the United States.

Overall global trade is expected to grow by US$1 trillion year-on-year to 2015.

Mr Tham noted: "International trade is set to increase despite current economic uncertainty; for businesses that are looking to grow, international trade is the real opportunity."

Aaron Low

The Straits Times

Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.