Research firm AC Nielsen said advertising spending grew five percent to S$750 million in the six months to June, sharply lower than the 29 percent rise in the same period last year.

But the economic slowdown and the gloomier outlook sparked by the September 11 terrorist attacks in the United States, are expected to see advertising expenditure plunge in the second half.

"This year in the first six months we saw an increase of five percent which is very good," said Lennart Bengtsson, AC Nielsen managing director for Singapore.

"The slowdown of the economy and economies around us took place in the second quarter this year and the recent events on September 11 have had an impact on advertisers' willingness to spend.

"I think we'll probably see a softening in quarter three and quarter four, but having said that, I think it will be flat on last year," he told reporters, referring to the total spending last year of $1.5 billion.

Singapore's trade-dependent economy is projected to post negative growth this year, from a robust 9.9 percent growth last year, due to declining exports and a global crunch in the electronics sector.

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