A net 12 percent of industrial firms polled by the Economic Development Board (EDB) between September and October were optimistic about the business climate in the six months to March, the EDB said.

This is lower than the 24 percent recorded in a similar survey conducted three months ago, it said.

"The current sentiment is due in part to seasonal factors as well as a softening in global electronics demand," the EDB said.

A net 15 percent of electronics manufacturers, who form the backbone of the industrial sector, are upbeat on the environment although semiconductor firms are worried about rising inventories, the EDB survey showed.

"Weaker sentiment is noted in the semiconductor segment on the back of rising inventories," the EDB said.

"Nevertheless, chip makers still expect output increases in the fourth quarter, compared to the past three months," it said.

Singapore's economy is expected to turn in its best performance this year since the 2001 recession with gross domestic product tipped to grow 8-9 percent after 1.1 percent in 2003.

                                                      Home