SG Morning Highlights | Singapore manufacturers' sentiment worsens; services sector mood moderates: surveys

Advancers / Decliners is 148 to 39, with 136.95 million securities worth S$153.68 million changing hands.

Local power producer YTL PowerSeraya will import electricity on a commercial basis from Malaysia for the first time, the company announced on Monday (Jan 30).

YTL PowerSeraya will purchase 100 megawatts (MW) of electricity over two years from TNB Power Generation's gas-fired plant in Pasir Gudang, Johor.

TNB Power Generation is a subsidiary of Malaysia's national electricity company Tenaga Nasional Berhad (TNB).

Offering incentives for early-stage investments into climate tech solutions, and schemes to refine capital risk charge with respect to green finance could help strengthen Singapore's global relevance in sustainability, the digital economy and international trade, PwC said in its wishlist for Budget 2023.

Encouraging climate tech breakthroughs will not only facilitate Singapore's green ambitions, it will also position the Republic as a sustainability innovation hub, said the professional services firm.

At the same time, Singapore has the potential to position itself as an environmental, social and governance (ESG) arbitration centre to resolve emerging environmental disputes, PwC said. This is in view of the potential rise in demand for carbon trading dispute arbitration, as more businesses decarbonise.

The rate of job switching in Singapore rose to a six-year high in 2022, due to an increase in job opportunities alongside a continued economic recovery, according to the Ministry of Manpower’s (MOM) annual Labour Force in Singapore report on Tuesday (Jan 31).

In 2022, 16.8 per cent of employed residents had changed jobs over the last two years, up from 15.3 per cent in 2021. This was mainly due to those who changed jobs in the last one year during the economic recovery, said the report, based on a survey conducted from April to July 2022.

Although the incidence of job change rose across all ages, it was more pronounced for younger workers under 30. Such workers are more likely to change jobs as they explore options early in working life, but heightened manpower demand in 2022 may also have encouraged more to seek new opportunities or resume job-switching plans that were deferred during the Covid-19 pandemic, said MOM.

The International Monetary Fund (IMF) has lowered its 2023 growth forecasts for Singapore, along with those of its Asean neighbours, saying slowing global growth will outweigh the positive impact from China's economic reopening.

Its chief economist Pierre-Olivier Gourinchas said Singapore's economy will grow by 1.5 per cent this year, slower than the 3.7 per cent growth achieved in 2022.

Speaking on Tuesday (Jan 31) at a media conference held here to mark the release of the IMF's latest World Economic Outlook, he said the forecast was lowered from a projection of 2.3 per cent made in October, in line with slower growth at most of Singapore's major trading partners.

Singapore's employment levels improved significantly in 2022 compared to the year before. This was on the back of a rebound in foreign workers as border restrictions were lifted and employers backfilled positions, according to the latest data from the Ministry of Manpower (MOM).

Total employment grew by an unprecedented 231,700 in 2022, said MOM in a preliminary report on Tuesday (Jan 31). This was driven mainly by a growth in non-resident employment in the construction and manufacturing sectors, which are typically more reliant on foreign manpower.

Resident employment also grew in 2022, but at a slower pace than the year before. Growth was observed across most sectors, and particularly in outward-facing sectors such as financial services; information and communications; and community, social and personal services.

For the third consecutive quarter, Singapore manufacturers remain negative about business conditions in the next six months, while positive sentiment in the services sector has moderated, according to separate quarterly surveys on Tuesday (Jan 31).

A net weighted balance of 25 per cent of manufacturers expect a less favourable business situation from January to June 2023, worsening from the previous quarterly survey, where 20 per cent were pessimistic, according to the latest release from the Economic Development Board (EDB).

For services firms, a net weighted balance of 3 per cent are optimistic, down from 9 per cent previously, found a similar survey by the Department of Statistics (Singstat).

On Wednesday (Feb 1), the manager said CICT posted a 14.4 per cent year-on-year increase in H2 FY2022 gross revenue to S$754.1 million, compared with S$659.4 million the previous year.

Net property income (NPI) for the second half rose 13.1 per cent year on year to S$541.7 million.

In a bourse filing on Tuesday (Jan 31), Sembmarine said its independent directors recommend that shareholders vote in favour of the deal.

The independent financial advisers (IFA) for the deal saw its terms as fair and reasonable, and had advised the independent directors to recommend shareholders to vote in favour of the deal, the company noted.

Gross revenue was up 4.3 per cent to S$141.8 million for the half-year period, from S$135.9 million a year ago. Net property income (NPI) grew 4 per cent on the year to S$129.3 million for the half year, from S$124.3 million. Distributable income rose 7.3 per cent year on year to S$93.7 million, from S$87.4 million.

CSE Global had on Monday completed its sale and purchase agreement to purchase the entire issued and outstanding shares of the group, which comprises Radio One and Communications Service Co of Daytona.

Radio One Group is based in Florida and provides radio communications solutions, Federal Communications Commission (FCC) licensing assistance, servicing and two-way radio rentals to enterprise and government customers. It also installs and manages wireless networks and video surveillance camera systems.