It appears that Singapore economy is going to be stuck in slower growth this year. It was forecast that the economy would be slightly better than the 2.0% growth achieved in 2016. (Source: MTI, 25 May 2017). Singapore also saw 2.0% GDP growth rate in 2015, which makes it three years in a row including this year (if the forecast is accurate).
The retail sector is badly affected. SIA is planning to cut manpower to cope with slower business and profitability. These point towards tightening of spending by consumers. Redundancy of workers (retrenchment or released prematurely on term contracts) was trending upwards since 2010 with last year seeing 19,170 made redundant. (Source: MOM)
I am not optimistic that Singapore would turnaround this year with good GDP growth rate. The current global events did not warrant my optimism. We are now in June, nearly halfway mark into 2017. With this backdrop, I was not active in the investments space and stayed on the sidelines. In fact, I had been reducing my investment portfolio of risky investments since the start of the year.
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