7 AUG 2017: Economy and SME Financing News
The latest 2017 July reading of the Singapore Purchasing Managers’ Index (PMI) at 51.0 (marginally up from 50.9 in June) revealed that the manufacturing economy (makes up about 20% of our economy) in Singapore has continued to grow for the 11th consecutive month due to new orders, exports and factory output. The PMI is an early indicator of manufacturing activity and a reading of 50 and above means expansion. The reading corroborates with a recent report by the Singapore Economic Development Board (EDB) that the manufacturing sector in Singapore attained a better than expected year-on-year growth of 13.1%, also a 11-month streak of growth. For the electronics sector, a marginal growth of 52.2 was recorded, a small increment from June’s 52.1, which was the 12th consecutive month of growth, attributed to strong demand for semiconductors since late last year.
However, there were opinions from economists that the sector, which makes up a fifth of the economy, is likely to have its growth trend moderated. For example, the July PMI reading was weighed down by a reduction in inventory levels and employment rate. Other economists also cited other weakening of other leading indicators like billings and shipments for semiconductors. Also, the manufacturing PMIs have fallen for Malaysia, Thailand, South Korea, Indonesia and India. The EDB business expectations survey by the manufacturing sector indicated 80% of the firms surveyed expected similar business conditions while only 12% expected improvement.
We hope your small business is continuing to ride the growth trend as mentioned in this article and preparing for more orders in the second half of 2017. Maybe your SME is having a tougher time and needs to plan financing and cash flows better. Perhaps you are now wondering what financing options are available for your SMEs. The solutions might include working capital loan / financing and invoice financing or factoring. We will be glad to discuss and provide a tailored made solution for your needs.
At IFS Capital Limited, we understand that all businesses are different in their needs and characteristics. That is why we are happy to explore financing options that meet the unique needs of your SME.
Why not drop us a note by clicking this form here and we can discuss this in further detail with you.
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