Singapore economy

Singapore’s banks are still experiencing broad-based business contraction, says CGS-CIMB, and while credit growth may pick up as GDP recovers, the end of moratoriums could deepen asset quality pressures.

“We rate Singapore one of our most-preferred markets in the region,” backed by “recession valuations” and expectations of an earnings recovery, said Hartmut Issel, head of APAC equities and credit at UBS Global Wealth Management.

“Ultimately, our aim is to grow our economy, create good jobs for Singaporeans and raise our standards of living… By being open to talent from around the world, we create more opportunities for ourselves,” says Prime Minister Lee Hsien Loong.

Almost two-thirds of Singapore businesses see the local economy’s activities continuing at their current low pace for the next year, according to a survey by the Singapore Business Federation.

A month has passed with Singapore’s bank lending rate declining as both business and consumer loans took a hit.

“Fears of a worst-case scenario seem to have overshot lockdown reality, with less earnings misses and higher earnings per share (EPS) upgrades in 2Q20. Progressive ramp up of regional economic activity in 2H20 has potential to strengthen these trends."

Rising global optimism about a coronavirus treatment is prompting a top Singapore analyst to take a bullish view of pandemic-hit small stocks in the city-state.

The Covid-19 health-turned-economic crisis has upended almost every sector, especially the services industry which was affected by the disrupted operations during the circuit breaker measures.

Singapore has long been the city of choice for Western expats wanting an easy entree into Asia.

“Much of our economy thrives because we have made ourselves a vibrant hub for the region and an attractive place for trade, investments, talent and ideas,” Halimah said Monday, addressing the first session of parliament since July’s general election.