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Amidst The Rally Talks, Singapore’s Growth Forecast Gets Cut By Moody’s
Singapore Market Commentary | 10 September 2015
By: Louis Kent Lee
Articles (199) Profile

At the time of writing, there’s only one more day to voting day. With political chatters all blacked out, the lingering of thoughts said from the speeches all over the island has struck the thinking tone of most Singaporeans.

In fact, a forecast that’s going viral on whatsapp messaging platform detailing the odds of the different SMCs and GRCs is underlining the attention people in Singapore are paying to the elections.

As much as we are also not spared from leaning towards specific parties’ policies and views, the unison of volatility commanding the markets is unbiased.

This election week, we saw the Hang Seng Index stage lift-offs (08 and 09 Sep 15), primarily on better data from western counterparts.

However, as China’s producer price index dove 5.9 percent, Asian markets felt the brunt of the whip, which saw HSI shedding 556.44 points, and the Straits Times Index losing 44.57 points in the morning trade.

On a broader note, ratings agency Moody’s has cut Singapore’s 2015 growth forecast from three percent to 1.7 percent. This is even more bearish than the Ministry of Trade and Industry’s already-lowered forecast range of two percent to 2.5 percent.

On the same tone, Moody’s competitor; Standard & Poors’ also expressed that it sees slower growth in Asia for 2015 and that this slowdown is primarily dragged by Indonesia, Philippines, Singapore, Taiwan and Thailand.

The index tracking business sentiments of Singapore small and medium enterprises (SMEs) fell to a three-year low at 51.9, with all sectors expecting a decline in both turnover and profitability in 4Q15.

Louis is a qualified accountant with the ACCA, and is the Research Editor at Shares Investment magazine.

Please click here for more information about this author.

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