Manufacturing and financial services sectors to see slower growth next year

Channel News Asia, Thursday, 15th Dec 2011

A survey by the Monetary Authority of Singapore (MAS) indicates that growth will be significantly slower for manufacturing and financial services in 2012.

Private sector economists polled also expect sluggish growth in the hotels and restaurants sector.

The survey conducted last month expect growth in the financial services sector to hover around 4.2 per cent for 2012, lower than the 9.4 per cent for this year.

For hotels and restaurants, growth is predicted to be around 4 per cent, down from 5.9 per cent this year.

The forecast for manufacturing is 3.4 per cent, down from 8.5 per cent this year.

Amid the forecasts of slower growth, unions are preparing workers for the bumpy road ahead.

Recruitment firms are also seeing a slowdown in hiring intentions from companies in the manufacturing, financial services, and hotels and restaurants sectors.

Some say there’s already a decline in hiring of between 10 to 12 per cent.

In an uncertain economic climate, companies are adopting a wait-and-see attitude. Workers are also less likely to change jobs.

Ronald Lee, Managing Director, Primestaff Management Services, said: “Traditionally during the last quarter of the year, people don’t move very much because of the bonus payout. They have been with the company for the entire year and don’t want to leave towards the end to only lose the bonus. Of course, there are people who may just decide to stay on because they are not likely to find a job elsewhere or not be able to move on to a better paying job.”

In times of slower growth, as companies become more mindful of hiring, recruitment firms expect companies to employ contract workers as compared to permanent positions.

Human resource practitioners also advising workers to moderate their expectations and be more hardworking to ensure they contribute to the overall bottomline of the company.

On the bright side, the forecast is rosier in sectors like construction, and wholesale and retail trade.

The construction sector is expected to grow 1.8 per cent, up from 1.2 per cent.

The wholesale and retail trade is expected to grow 2.2 per cent, up from 1.4 per cent.

The MAS survey also forecast an increase in the unemployment rate of 2.4 per cent in 2012, up from 2.1 per cent this year.