The number of industrialists seeing worsening times ahead was growing, according to an EDB survey, released just two days ahead of an academic general election in which the economy has been a key campaign issue.

The survey found a net weighted balance of 29 percent of the industrialists anticipated deteriorating conditions in the six months to March 2002, up from 22 percent in the last survey three months ago.

"Within the manufacturing sector, the electronics cluster remains pessimistic about the general business conditions in the next six months," the EDB said.

"Many of the industrialists... expect weak global demand and aggressive pricing pressure to continue in the months ahead.

"Further they expect that the cluster's recovery may be adversely impacted by uncertainties arising from the terrorist attacks in the United States on September 11."

The Singapore economy is overwhelmingly trade dependent, with close to 80 percent of demand coming from overseas, and basked in 9.9 percent economic growth last year.

With with a global economic slowdown in 2001, especially in electronics, Singapore was heading for minus 3 percent growth this year, according to government estimates.

In August alone, manufacturing output tumbled 21 percent from a year earlier, largely because of the sharp contraction in global demand for the core electronics products.

In tandem with dwindling external demand, companies expected output to drop, overtime to be cut and layoffs to rise.

"Many of the industrialists do not expect any significant respite from the Christmas season this year," the EDB said.

In other business sectors, the outlook was similarly gloomy.

Most chemical industrialists expect conditions to remain difficult in the next two quarters, except for the petroleum refining industry, and engineering business also saw overall decline apart from the marine division.

Aviation engineering faced the fallout from reduced air traffic after September 11, while marine engineering saw the prospect of ship repairing activities moving to Singapore as a result of uncertainties in the Middle East, the EDB said.

A weighted 35 percent of industrialists indicated they did not plan to invest in plant and machinery over the next 12 months while another 29 percent said they had reduced their investment plans.

The outcome of Saturday's election was decided on nomination day, when the ruling People's Action Party was uncontested in a majority 55 of the 84 seats.

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