Although the economical and geopolitical confusions in the Middle East and Europe, local companies still hope in the rise of prices. This fact is taken from a survey, conducted by advisory services firm EY, in August and September.
A number of 72% of the one's asked have the belief that the economy of Singapore is improving. This makes a huge gap from the pas survey, where just 31% believed so. Important people from roughly 120 firms from Southeast Asia took part in this study.
The businesses in Singapore tend to have a good belief in expansion as well. From the businesses that took part in the survey, 28% expect to increase the number of employees withing a year. Only 6% look at the other side of the glass, saying there will be less staff members in the near future. The headcount is also on a constant pace from the view of two-thirds of the participants.
Singapore's Research director at CIMB, Mr Song Seng Wun, declared: “What we continue to see is there is still business opportunity from around the region itself. So, I think that is what is being captured in such surveys, in that while they are wary of uncertainties, there are still growth opportunities within and around the region."
Only 36% of businesses plan in either keeping the same level or reduce it's costs, while the other 64% have the vision of growth in the year that comes.
Serious investments are planned by 53% of the participants withing 12 months. They have the reason of generating growth to the business. Previous studies register only 24% of the ones with these types of strategies in mind. This kind of strategy implies a cost of 50 million US dollars, according to 73% of the respondents.
The declaration of Mr Harsha Basnayake, managing partner of ASEAN says it best:
"If you look at most of the companies in Southeast Asia, about 56 per cent are basically saying they would do bolt-on acquisitions to expand their existing businesses. That is a natural motivation that people would have." “But 44 per cent continue to say they would look at opportunistic deals as well. And that reinforces the conglomerate appetite that we have got in a lot of our businesses," he added.
Mergers and acquisitions are the main reasons 84% of the participants believe that Singapore's market is improving. The others believe the exact opposite.