Blackhawk Network: decline in employee satisfaction and engagement in Singapore

Concept artwork about workplaces generated by
Bing Image Creator (Dall E 3).

Leveraging employee recognition, rewards, and incentives to foster engagement and increase loyalty in an evolving workplace environment, according to Blackhawk Network (BHN).

BHN's latest research highlights how leaders can help guide their organisations through these transitions:

Employee satisfaction and engagement

Employee satisfaction and engagement in Singapore has recently declined. Amid fears surrounding job security and pay, productivity has begun to suffer. According to BHN research, 93% of employees expressed concerns about their current employment situation.

The two top concerns were “pay increases that won’t cover the cost of living” (41%) and “being asked to do more without a pay increase” (36%).

The current uncertainty is clear, with one in four employees actively seeking new opportunities. They often prioritising pay and benefits when considering potential employers, said BHN.

However, the desire for higher pay alone is not enough. More than half (51%) of the respondents stated that they want more frequent recognition and rewards as part of a broader engagement strategy.

BHN VP of Incentives in APAC, Peter Malycon said: “Companies are encouraged to consider their recognition and incentives programmes, and ensure that they are aligned with the evolving needs of their workforce. Our research clearly highlights that employees are increasingly seeking not just higher pay, but more frequent acknowledgement for their contributions.”

The role of AI and technology in the workplace

BHN’s survey showed that 66% of employees are using AI in their roles, with 83% reporting an increase in productivity as a result. However, there is a delicate balance to be struck between leveraging AI’s benefits and maintaining human-centred recognition programmes, BHN noted. Employees continued to value personalised, timely recognition and rewards that reinforce their sense of value within the company.

The hidden significance of employee engagement and wellbeing

As AI continues to redefine the traditional workplace, re-engaging and rebuilding employee commitment will become more critical in the coming years, BHN suggested. Meaningful engagement, alongside efforts to support employee wellbeing, will play a key role in driving and enhancing business outcomes.

This is reflected in the fact that 81% of respondents indicated that receiving recognition and rewards from their company helps to keep them energised and boosts their loyalty. Moreover, 61% emphasised that the timeliness of these rewards is key. Digital or prepaid cards are a great solution to this and are loved across a range of ages and work environments.

“As we approach Employee Appreciation Day, Singaporean employers should consider how they can integrate both small and large-scale recognition tactics; it’s not just about the big bonuses, but about creating a culture where employees feel consistently valued and rewarded for their contributions”, Malycon emphasised.

Employee Appreciation Day, celebrated annually on the first Friday in March - 7 March this year - offers an ideal opportunity for employers to show their gratitude and celebrate employees’ achievements and contributions, BHN said. 

Ipsos: Over half of all Singaporeans upbeat about 2022, mixed feelings about 2023

An annual global survey by Ipsos on people’s perspective of the year gone by and predictions for the year ahead has found that nearly three quarters (73%) of global citizens say it has been a bad year for their country, 4 percentage points lower than those who had said the same about 2021.

On average, across all 36 countries surveyed in the Ipsos Global Predictions for 2023 report, over half (56%) described 2022 as a bad year for themselves and their family. Even more (73%) said 2022 has been a bad year for their country. Both figures are better than for 2021 (58% and 77% respectively) and markedly better from the annus horribilis that was 2020, when 90% said it had been a bad year for their country and 70% that it had been a bad year for them and their family.

In contrast, Singaporeans are feeling more positive about how the year went. While slightly more than half (57%) of Singaporeans say that it was a bad year for Singapore, this is a significant 23 points lower than the sentiment measured a year ago.

The economy in 2023

There is split optimism for the year ahead with about half of (55%) Singaporean respondents saying that the global economy will be stronger in 2023. There is a little more optimism for their personal situations with 64% saying that 2023 will be a better year for them than it was in 2022. This is a 15% drop from the sentiment measured a year ago, as inflation has begun to take centre stage over the receding pandemic.

Nearly nine in 10 (87%) Singaporeans believe that prices in the country are likely to increase faster than people’s incomes. Six in 10 Singaporeans also say that it is likely that major stock markets around the world will crash in 2023. Citizens are also expecting higher interest rates (83%) and unemployment (71%) in 2023.

Even as fears around rising prices loom nearer, Singaporeans trust in the overall economic stability of the country. While about half (46%) of global citizens expect their country to require an emergency bailout from the IMF next year, a lower than average 35% of Singaporeans say so of Singapore.

World security in 2023

Ipsos noted that world security has been very much on everyone’s minds in 2022 with active conflict zones in several parts of the world and international tensions rising in others. The possible escalation of such conflicts has increased concern that nuclear weapons will be used somewhere in the world.

More than half (56%) of Singaporeans now feel this is a likely scenario rather than a mere possibility, up markedly from the 40% seen this time last year. The anxiety is particularly high in neighbouring Indonesia (69%), but considerably lower in China (40%). Nearly four in 10 (39%) Singaporeans expect the war in Ukraine will end in 2023, and another 40% expect it to continue.

The role of technology in potential disruption is also recognised. Nearly half (48%) of Singaporeans say it is likely hackers from a foreign government will cause a global IT shutdown (vs global average of 44%). 

The general mood of anxiety has even had knock-on effects on concerns about catastrophic stellar events. Now, 27% of Singaporeans think an asteroid strike on earth is likely in 2023 (up 6% from last) while 22% expect aliens to visit the earth (up 8% from last year).

Environment in 2023

Most people around the world believe we will see more climate change consequences in 2023. Seven in 10 Singaporeans say it is likely there will be more extreme weather events in the country next year. In addition, 60% of Singaporeans say 2023 will likely be the hottest year on record. There is some hope for a breakthrough in technology that will halt climate change, with 43% of Singaporeans saying that this is likely. Indonesia is most optimistic, with 76% saying it is likely, and Japan most pessimistic with just 14% thinking this will be so.

Expectations for major progress in tackling climate change are relatively low: The numbers who expect to see people flying less than they did in 2019 before the Covid-19 pandemic are down from 67% last year to 43% now. This is no doubt driven by a desire to resume foreign travel habits as the rules and restrictions introduced to try to limit the spread of Covid have been eased around the world. 

Society in 2023

Six in ten (63%) Singaporeans anticipate no further Covid-19 lockdowns in the country next year as people get back to some form of normality. In China and South Korea, around half of the surveyed people (43% and 44% respectively) think it is likely that this will be the case. In Indonesia, the vast majority (82%) are very confident that they will not experience further lockdowns in 2023.

It is not yet clear to what degree the changes to working patterns that were enforced by Covid will persist and continue to evolve – 46% of Singaporeans believe that it will become normal for businesses in Singapore to implement a four-day working week during 2023. At the same time, the proportion thinking that many more people will live their lives in virtual worlds has dropped by 15% from last year to 57%.

Globally, around one in three (34% up from 28% last year) say is likely that people in their country will become more tolerant of each other. In Singapore, 52% say this is likely, up 13% from last year.

Meltwater tracks the buzz for Singapore's General Elections

Source: Meltwater. Share of voice for Singapore political parties contesting in the General Elections, 2020. The People's Action Party accounted for 50.2% of all interactions, followed by the Worker's Party at 16.6% of the pie. The Progress Singapore Party was a close third at 16.1% of all interactions.

Global media intelligence company Meltwater has compiled a report highlighting key news media and social media stats following the announcement of Singapore’s 2020 General Election (GE2020).

Highlights include:

- The People’s Action Party (PAP) generated the most buzz on news and social platforms in the past week (50.2%), followed by Worker’s Party (WP, 16.6%) and Progress Singapore Party (PSP, 16.1%).

- Social media conversations seem to have picked up steam in the last two days of the week, 29 and 30 June, (8,900 total posts), following the nomination announcements on 30 June.

The country's retirement fund, the Central Provident Fund (CPF), foreign talent/immigration and job-related conversations are among the key themes being discussed in association with GE2020.

Additionally, the report also analysed the social media presence of select political parties. Results include:

Source: Meltwater. Identifying the themes in conversations around GE2020.

- The Worker’s Party witnessed a 7.6% increase in social media follower count over the past week, while People’s Action Party and Singapore Democratic Party (SDP) both saw a 3.8% growth rate for the same.

- Most of PAP’s social media followers fall in the 18-24 and 25-34 years demographic split, while WP and PSP followers are largely the 18-24 age group.

WP had the highest Facebook interaction (a sum of likes, reactions, comments and shares) over the past week, followed by PAP. Across all the parties’ social media pages, posts announcing nominees drove the highest engagement in the past few days.
 
“The focus on social and digital media channels is more important than ever in this year’s general election, as most of the campaigning is being done virtually. This presents both an opportunity and a challenge to political parties,” said Mimrah Mahmood, Senior Director & Partner at Meltwater.

“Parties and candidates with a strong online footprint are likely to have the upper hand in virtual campaigning, and for those who don’t, now is the time to step up efforts to increase digital presence in order to stay relevant and connected to voters.”

*Data collected is based on all public conversations across news media and social media worldwide from 23 to 30 June, 2020. Social media channels include Facebook, Twitter, Instagram, forums, blogs and YouTube.

New media intelligence platform launched in Singapore, Australia

Truescope, founded John Croll and Michael Bade, is set to challenge the media intelligence industry.


Launched in Singapore and Australia, the cloud-based platform is designed to inform communicators about breaking news as well as consumer sentiment, brand awareness, campaign performance, and customer experience in real time. The technology analyses millions of social and mainstream media stories using machine learning and natural language processing, determining sentiment, potential effects on brand reputation and contributing to measures for brand awareness and communications effectiveness.

"We think our approach to people, product and scalability is revolutionary in this space, and we all have the unequivocal mindset that the client experience is central to everything we do. We're ready to build bridges between new technologies and the communications industry so our clients can immediately understand the value Truescope brings and see how different we are to what has come before us," said Croll.

As part of its expansion across Asia-Pacific, Truescope has partnered with Dataxet, a data intelligence company. Truescope has also secured official partnerships with Twitter and major publishers.

David Liu, Founder of Dataxet said, "Truescope will be a great opportunity for us to champion smarter media intelligence for brands, using Singapore as a strategic launch pad."

Jason Lee, Managing Partner of Dataxet and CEO of Truescope Singapore shared, "The future of media intelligence goes beyond traditional clippings or collation of brand mentions. Smart media intelligence provides critical objective insights about a brand or organisation in the media that can be accurately and rapidly delivered to C-suites and management in order to be fed back into brand strategy, positioning and product development. Combine media intelligence with internal brand data such as sales, revenue and CRM data, and you start closing the ROI loop in your marketing and communications efforts."

CRM stands for customer relationship management; ROI for return on investment.

CEOs are optimistic about the global economy: PwC

Most CEOs are optimistic about the economic environment worldwide, at least in the short term. This is one of the key findings of PwC’s 21st survey* of almost 1,300 CEOs around the world, launched at the World Economic Forum Annual Meeting in Davos, Switzerland.

Fifty-seven percent of business leaders say they believe global economic growth will improve in the next 12 months, almost twice the level of last year (29%) and the largest-ever increase since PwC began asking about global growth in 2012. This trend was seen even among less optimistic countries such as Japan (2018: 38% vs. 2017: 11%).

“In Singapore, we are also seeing more positive business sentiment. However, with the increasingly complex business landscape, Singapore business leaders will need to find a way to leverage the upturn in the global economy and expand internationally,” says Yeoh Oon Jin, Executive Chairman, PwC Singapore.

This optimism in the economy is feeding into CEOs’ confidence about their own companies’ outlook, even if the uptick is not so large. Forty-two percent of CEOs said they are “very confident” in their own organisation’s growth prospects over the next 12 months, up from 38% last year.

Looking at the results by country, it’s a mixed bag. CEOs’ outlook improved in several key markets including in Australia (up 4% to 46%) and China (up 4% to 40%), where the share of CEOs saying they are “very confident” in their own organisation’s 12-month growth prospects rose.

The top three most confident sectors for their own 12-month prospects this year are technology (48% “very confident”), business services (46%) and pharmaceutical and life sciences (46%) – all exceeding the global “very confident” level of 42%.

Strategies for growth remain largely unchanged on last year’s survey – CEOs will rely on organic growth (79%), cost reduction (62%), strategic alliances (49%) and mergers and acquisitions (42%). There was a small increase in interest in partnering with entrepreneurs and startups (33% vs 28% last year).

This year, the US reinforces its lead on China as the top market for growth (46% US vs 33% China, with the US lead over China up 2% compared with 2017). Germany (20%) remains in third place, followed by the UK (15%) in fourth place, while India bumps Japan as the fifth most attractive market in 2018.

“Even with high levels of global growth confidence, business leaders want and need safe harbours for investment to secure short-term growth,” comments Bob Moritz, Global Chairman, PwC. “Access to consumers, skills, finance and a supportive regulatory environment are reinforcing leading markets’ positions, for business leaders to achieve their short-term growth targets.”

Confidence in short-term revenue growth is feeding into jobs growth, with 54% of CEOs planning to increase their headcount in 2018 (2017: 52%). Only 18% of CEOs expect to reduce their headcount.

Healthcare (71%), technology (70%), business services (67%) communications (60%) and hospitality and leisure (59%) are amongst the sectors with the highest demand for new recruits.

On digital skills specifically, over a quarter (28%) of CEOs are extremely concerned about their availability within the country they are based, rising to 51% in China. Key skills availability is also the top concern for CEOs in China (2018: 64% extremely concerned vs. 2017: 52%). Overall, 22% of CEOs are extremely concerned about the availability of key digital skills in the workforce, 27% in their industry and 23% at the leadership level.  

Investments in modern working environments, learning and development programmes and partnering with other providers are the top strategies to help them attract and develop the digital talent they need.

While recent research by PwC showed that workers were optimistic about technology improving their job prospects, CEOs admit that helping employees retrain, and increasing transparency on how automation and artificial intelligence (AI) could impact jobs is becoming a more important issue for them.

Two thirds of CEOs believe they have a responsibility to retrain employees whose roles are replaced by technology, chiefly amongst the engineering and construction (73%), technology (71%) and communications (77%) sectors. Sixty-one percent of CEOs build trust with their workforce by creating transparency, at least to some extent, on how automation and AI impact their employees.

Yeoh said, “Singapore’s workforce of today must recognise that disruption is not just a buzzword and that the way we operate and do business will change drastically. More companies are implementing technologies and adopting systems that pose a real threat to jobs.

“As the Singapore government pushes the workforce to upskill, individuals must also take responsibility for their own continuous learning to stay relevant in this technology-enabled job market.”

While 18% of CEOs expect to reduce their headcount, CEOs estimate that four out of five (80%) of those jobs affected will have been impacted in some way by technology – 52% to some extent and 28% to a large extent.

The digital and automation transition is particularly acute in the financial services sector. Almost a quarter (24%) of banking and capital markets (BCM) and insurance CEOs plan workforce reductions, with 28% of BCM jobs likely to be lost to a large extent due to technology and automation.

Despite the optimism in the global economy, anxiety is rising on a much broader range of business, social and economic threats. CEOs are ‘extremely concerned’ about geopolitical uncertainty (40%), cyber threats (40%), terrorism (41%), availability of key skills (38%) and populism (35%). These threats outpace familiar concerns about business growth prospects such as exchange rate volatility (29%) and changing consumer behaviour (26%).

Underlining the shift, extreme concern about terrorism doubled (2018: 41% vs 2017: 20%) and terrorism enters the top 10 threats to growth. The threat of over-regulation remains the top concern for CEOs (42% extremely concerned), and over a third (36%) remain concerned about an increasing tax burden.

A year after the Paris Agreement was signed by over 190 nations, which saw countries commit to voluntary action on climate change and low carbon investment, CEOs’ concern about the threat of climate change and environmental damage to growth prospects has now doubled to 31% of CEOs (2017: 15%).

High-profile extreme weather events and the US withdrawal from the Paris Agreement have significantly raised the profile of business action on climate risk, regulation and resilience. In China, over half (54%) of business leaders are extremely concerned about climate change and environmental damage as a threat to business growth, equal with their levels of concern about geopolitical uncertainty and protectionism.

Climate change and environmental damage is reported in the top five threats for businesses in Asia Pacific, and recognised as a top-five threat for the growth prospects of companies in the energy and utilities, engineering and construction, transport and logistics sectors. 

“The higher level of concern is being driven by larger societal and geopolitical shifts rather than the dynamics of business leaders’ own markets,” comments Moritz. “It’s clear their mid- to long-term confidence in revenue growth is tempered by threats the business world is not used to tackling directly itself.” 

Source: PwC microsite. Terrorism and cyber threats are ranked higher in the list of top 10 threats to business growth in 2018.

Echoing the theme of the World Economic Forum this year, CEOs acknowledge that we live in a fractured world. They are divided over whether future economic growth will benefit the many or the few. They see the world moving towards new, multifaceted metrics to measure future prosperity.

Yeoh said: “We can see that CEOs are navigating the fragmentation through the increased concerned for societal threats. This also holds true in Singapore as we enter an era of slower growth, shifting demographics and technological disruption.

“While financial performance is an essential element underpinning any market economy, it cannot be the only measure of success. Broader measures, reflecting targetted outcomes in societal terms, such as quality of life, must also be considered.”

Examining the key challenges to trust for businesses, CEOs admit that delivering results in shorter periods of time (60%) is the main challenge. However, following this, there is a significant shift with the majority reporting higher levels of pressure to hold individual leaders to account (59%), including for misconduct. Over a third report more pressure from employees and customers to take political and social stances (38%) in public.

In the BCM (65%), healthcare (65%) and technology sectors (59%), the profile of leadership accountability was higher than average. High-profile debates on diversity, immigration, social inclusion and pay equity have raised employees’ expectations of leadership to engage in political and social issues, including in China (41%).

Explore:

Download the report

*PwC conducted 1,293 interviews with CEOs in 85 countries between August and November 2017. The sample is weighted by national GDP to ensure that CEOs’ views are fairly represented across all major countries. Eleven percent of the interviews were conducted by telephone, 77% online, and 12% by post or face-to-face. All quantitative interviews were conducted on a confidential basis. Forty percent of companies had revenues of US$1 billion or more: 35% of companies had revenues between US$100 million and US$1 billion; 20% of companies had revenues of up to US$100 million; 56% of companies were privately owned.

Digital wallets capture the Asia Pacific imagination

Digital wallets have dominated the payments discussion, with the topic in 83% of Asia Pacific conversations of new ways to pay, and 75% of global conversations tracked in the 2017 edition of the Mastercard Digital Payments Study*.

At the same time, consumers are showing an increased interest in the application of new technologies to make shopping faster, easier and more secure. The topic of virtual reality generated the most positive sentiment globally and in Asia Pacific (100% positive) among emerging technology topics, as shoppers imagine completing a purchase with a nod of their heads.

Now in its fifth year, the study, developed in partnership with PRIME Research and Synthesio, analysed more than 3.5 million conversations from the past year across several social media channels, including Twitter, Facebook, Instagram and Weibo.

“Technology is making the promise and the potential of a less-cash life a reality for more people every day,” said Marcy Cohen, VP of digital communications at Mastercard. “This year’s study notes a change in the level of interest for new ways to shop and pay that only a few years ago would have seemed far-fetched.”

The increased acceptance of digital wallets in-store, online and in-app generated more than 2 million mentions, with 84% of them on Twitter. Beyond the payment, consumers looked forward to additional functionality like storing loyalty cards and supporting closed-loop public transportation systems.

The activation of newer technologies like artificial intelligence and smart home assistants was the second most discussed payment topic throughout 2016. These new ways to pay generated particularly strong consumer interest in the fourth quarter, as people discussed how they might shop with newer, smarter devices.

Wearables was the leading emerging technology topic (37% of all conversations on emerging technology), driven by partnership announcements from technology developers and payment providers. In Asia Pacific, discussions among consumers were particularly positive (93% positive) with rumours of mobile wallet integration with wearables driving the conversations.

Smart assistants, virtual reality and artificial intelligence also emerged as new payment technology interests.

In their conversations, people continually noted that the success of new technologies and new ways to pay will be dependent on the security and protections delivered beyond what’s available today. Nearly half of consumers worldwide (43%) and in Asia Pacific (45%) expressed interest in biometrics and other forms of authentication to deliver enhanced security, reduce fraud and move beyond traditional passwords.

New developments in facial recognition and fingerprint and touch authentication drove over half of biometric/authentication conversations (51%). In Asia Pacific, consumer excitement around new biometric and authentication technologies, particularly in India, drove positive sentiment (66% positive) for safety and security discussions.

Facial recognition conversations focused on the Mastercard Identity Check Mobile app, Google’s Hands Free app and a Snapchat patent to incorporate a payments platform with real time services.
Complaints centred on entering, forgetting and resetting passwords. Consumers expressed interest in getting rid of passwords altogether with easier, improved authentication.

Source: Mastercard. Infographic on the results of the Mastercard Digital Payments Study 2017. The Asia Pacific region views wearables very positively.

Hashtags: #MWC2017, #MWC17

*Mastercard, in partnership with PRIME Research, conducted its fifth annual Digital Payments Study, designed to identify expanding conversations on new ways to pay. Mining more than 3.5 million social media posts via Synthesio over the past year across Twitter, Facebook, Instagram, Forums, Google+, YouTube, Vkontakte and Weibo and covering 188 markets across the globe, the resulting report reflects insights into new mobile payments product and category trends across regions and countries.

Investment commitments in Singapore continue in positive territory

Investment commitments in 2016 met or exceeded the Singapore Economic Development Board's (EDB’s) forecasts for all indicators, reflecting the continued confidence of global companies in Singapore as a strategic location in Asia to drive growth and innovation of their businesses.
EDB will continue to capture opportunities in growth sectors to generate sustained growth and create good jobs for Singaporeans. In 2016, EDB attracted S$9.4 billion in fixed asset investments (FAI), which is at the upper end of the forecast of S$8 to S$10 billion. Total business expenditure per annum (TBE) stood at S$8.3 billion, which exceeded the forecast range partly due to large-scale shipyard projects committed. Value-added per annum (VA) and expected jobs, at S$12.9 billion and 20,100 respectively, were within the forecast ranges.

For 2017, investment commitments are expected to be comparable to 2016 levels. TBE, however, is expected to return to earlier levels as the large shipyard projects committed in 2016 have long investment cycles and will not recur in the near future. This overall outlook reflects the steady growth in Asia and Singapore’s resilience as a strategic location to drive growth and innovation.

EDB will also seek to consolidate Singapore’s position as a high-value manufacturing base by capturing opportunities in advanced manufacturing. Strategies include anchoring lead adopters of advanced manufacturing in Singapore, while building up an ecosystem of suppliers and enablers to develop technologies and solutions. In addition, EDB will partner other government agencies such as SkillsFuture Singapore and Workforce Singapore, companies and institutes of higher learning to ensure that there is a pipeline of fresh graduate and mid-career entrants into the manufacturing workforce.

“The investment commitments attained in 2016 are a testament to Singapore’s attractiveness and strengths as a global business hub. We will continue to seize economic opportunities brought about by growth sectors including advanced manufacturing, hub services and digitalisation, and help Singaporeans take up new jobs with skills upgrading programmes,” said Dr Beh Swan Gin, Chairman EDB. “Despite the uncertain operating environment in 2017, the level of investment interests from companies remain stable. We will also focus on transforming existing industries to boost our economic competitiveness and uncover new business opportunities for companies in Singapore.”

Interested?

Read the WorkSmart Asia blog post about business sentiment in Singapore for the coming months

Cautious business sentiment for 2017 in Singapore

The Singapore government has released business sentiment from the manufacturing and the retail sectors for 2017.

A majority of the firms polled (a weighted 76%) in the manufacturing sector by the Singapore Economic Development Board expect the business situation in 1H17 to remain similar to a quarter ago. A weighted 13% of manufacturers expect business conditions to improve while a weighted 11% foresee a slower business outlook. Overall, a net weighted balance* of 2% of manufacturers anticipate a favourable business situation for January to June 2017, compared to in Q416.

Within the manufacturing sector, the electronics cluster is the most optimistic about the next six months ending June 2017. A net weighted balance of 26% of firms anticipate an improved business situation ahead. This optimism is largely from the semiconductor segment, which expects the current improved market conditions to continue into 2017. In contrast, the infocomms & consumer electronics segment expects the business outlook to deteriorate compared to the preceding quarter.

In the precision engineering cluster, a net weighted balance of 2% of firms anticipate that business conditions will improve in the six months ahead, compared to Q416. Within this cluster, the machinery & systems segment foresees better business prospects, largely supported by the semiconductor-related equipment industry. On the other hand, the precision modules & components segment projects a less favourable business situation, in particular for metal stamping, plastic and rubber components.

In the transport engineering cluster, a net weighted balance of 4% of firms foresee that the business outlook will worsen from January to June 2017. This weaker outlook is largely driven by the marine & offshore engineering segment, which continues to be weighed down by lacklustre offshore exploration and drilling activities. On the other hand, the aerospace segment foresees a positive business outlook, in anticipation of more engine repair jobs.

A net weighted balance of 5% of firms in the chemical cluster anticipates a less favourable business situation in the first half of 2017. Within the cluster, the petroleum refining segment is concerned about the strength of refining margins following a seasonal uptick in Q416, while majority of the petrochemicals and specialties firms expect similar business conditions as a quarter ago. In contrast, the other chemicals segment is positive about business prospects, supported by the fragrances industry.

The general manufacturing industries cluster is the least upbeat about business prospects for the first half of 2017, with a net weighted balance of 29% of firms predicting a softer business outlook in the months ahead. The weak sentiment is broad-based, with all segments anticipating poorer business conditions ahead. In particular, firms in the miscellaneous industries segment expect lower demand for construction-related materials due to the slowdown in construction activities.

A net weighted balance of 4% of manufacturers expect a lower level of output in Q117 compared to Q416. While the electronics and precision engineering clusters forecast output increases, the rest of the clusters project declines:

• A net weighted balance of 18% of firms in the electronic cluster expect production to increase in Q117 as compared with a quarter ago. 
• The semiconductor and other electronic modules & components segments expect higher output from January to March 2017 in anticipation of higher export orders and increased production capacities. 
• In the precision engineering cluster, a net weighted balance of 10% of firms project higher output, largely supported by the semiconductor-related equipment industry. 
• A net weighted balance of 17% of biomedical manufacturing firms expect a lower output level in Q117  compared to Q416.

When it comes to the service sector, a survey** has shown that a net weighted balance of 14% of related firms expect less favourable business conditions for 1H17 (January to June 2017) compared with 2H16 (July to December 2016). This is less optimistic compared to the net weighted balance of -8% registered in the previous quarter’s survey (October 2016 to March 2017) but is an improvement over the net weighted balance of -18% recorded for the same period last year.

Overall, a weighted 10% of firms are optimistic about the business conditions for 1H17 while a weighted 24% of firms foresee slower business. The majority of firms (a weighted 66%) anticipate the level of business activity to remain the same.

Within the services sector, all industries expect the level of business activity to deteriorate or remain the same for 1H17 as compared to 2H16. After experiencing brisk business during the year-end holidays, firms in the accommodation and food & beverage services industries expect slower business in 1H17.

A net weighted balance of 43% of the firms in the transport & storage industry expect the business situation to worsen in the six months ending June 2017. In particular, shipping lines foresee a slower global economy and weaker consumer demand to have a negative impact on the cargo volume in 1H17. Firms in the real estate industry are also less optimistic in their business outlook, registering a net weighted balance of -39%. Real estate developers continue to cite the government property cooling measures including the additional buyer’s stamp duty (ABSD) and total debt servicing ratio (TDSR) requirements as well as the uncertain economic outlook for the weak demand in the property market. For the retail trade industry, a net weighted balance of 22% of firms expect business prospects to deteriorate. In particular, retailers of wearing apparel & footwear, household appliances & furniture expect weaker consumer demand. A net weighted balance of 13% of firms in the services sector expect operating receipts to decrease for 1H17 as compared to 2H16. All industries within the services sector expect operating receipts to deteriorate or remain the same in Q117 compared to the preceding quarter.

In line with their negative business outlook, firms in the accommodation and food & beverage services industries expect the level of operating receipts to fall, with a net weighted balance of -48% and -21% respectively from January to March 2017 as compared to the preceding three months, which coincided with the year-end and festive holidays.

Firms in the transport & storage and real estate industries are also less optimistic in their operating receipts outlook for Q117 with a  net weighted balance of -34% and -22 % respectively. In terms of employment, a net weighted balance of 4% of the firms in the services sector expects to reduce hiring for Q117. Within the services sector, firms in the accommodation, business services, and transport & storage industries expect to reduce hiring as they anticipate slower business activity. On the other hand, the retail trade industry expects hiring to increase, due mainly to supermarkets which anticipate higher sales during the Chinese New Year festive period***.

*A net weighted balance is used to indicate the likely overall direction of change of a particular activity or industry. Net weighted balance is calculated by taking the difference between the weighted percentages of  “ups” and “downs”. A minus sign denotes a net downward trend.

**The Business Expectations Survey for the services sector is conducted quarterly, one month before the reference quarter, by the Singapore Department of Statistics. The Q117 survey was conducted from December 2016 to mid-January 2017. It is a survey aimed at obtaining the business outlook for the immediate future of firms in the services sector. The survey covers some 1,500 enterprises in wholesale trade, retail trade, transport & storage services, accommodation, food & beverage services, information & communications services, financial & insurance services, real estate, business services (excluding real estate) and recreation, community & personal services. 

Respondents are asked about their expectations of the business situation in the next six months as well as operating receipts and employment in the next three months. Their views are expressed in terms of directional change (i.e., “up”, “same” or “down”). Enterprises’ responses are then weighted and aggregated to derive the weighted percentages for “up”, “same” or “down” at industry and overall sectorial level for each question. Employment size is used as the weighting variable at both the enterprise and industry level for the employment forecast. For the general business outlook and operating receipts forecast, operating receipts and value added are used as weights at the enterprise level and industry level respectively.

***Chinese New Year began on January 28 in 2017 and continues till February 11, 2017. Celebrations typically begin about two weeks before the first day of the lunar new year.

Compass Index reflects upbeat APAC business outlook

Amidst a global economic slowdown, the Compass Index reveals business confidence in the Asia Pacific (APAC) region is mainly optimistic, with Australians shown as the most confident. However, to sustain growth, businesses are urged to be agile and innovative in their way of work.

Source: Compass Index infographic. Australia is particular optimistic on business growth. 

Asian serviced offices, virtual offices and meeting rooms provider Compass Offices global clients provided input for the survey behind the Compass Index, which measures business trends in nine countries in Asia Pacific. The respondents are from a cross-section of startups, small and medium businesses as well as multinational companies.

With China’s economic slowdown, the International Monetary Fund (IMF) has forecast that global growth will be 3.4% this year with a weakened outlook for the next six months. Meanwhile, the Asian Development Bank forecasts that the Asian region is to post 5.7% annual GDP growth, dish from 5.9% last year.

The Compass Index shows however that 51% of Australians feel strongly confident about their business growth this year. This is the most positive outlook compared to 43% in Singapore and 30% in Hong Kong. Japan posted the lowest score in the region at 15%.

“Our Index shows that businesses are optimistic about their growth this year. However, to stay on top of their game, they will need to reconsider where their investment is and reinvent new ways of working, to be more adaptable to economic conditions,” said Andrew Chung, CEO of Compass Offices.

Source: Compass Index infographic. Six in 10 of Singapore respondents said they would hire this year.

The employment growth rate is slated to slow this year. In Japan, under 20% of surveyed clients plan to hire this year. However the Index shows that 61%, 56% and 44% of businesses in Singapore, Australia and Hong Kong respectively plan to hire more personnel. The findings from the survey reveal that sales, marketing and IT skills are the most in-demand this year to support their business growth.

Compass Offices is adding more centres in the Philippines and in Europe to the existing network to accommodate demand.“We work with companies of different sizes and shapes and from various industries. We understand that growing business takes more than passion, especially to stay on top of competition. This is why, at Compass Offices, we always strive to partner with our clients to provide them with solutions that not only suit their business needs but also provide flexibility to support their business growth,” said Chung.

Source: Compass Index infographic. Hong Kong, Australia and Singapore are hungry for salespeople.

Interested?

View the complete infographic (PDF)

posted from Bloggeroid

Slightly under half of Singaporeans think Budget 2016 is fair

YouGov, the global polling and research firm, surveyed* 986 Singaporeans right after the Budget 2016, and found that local sentiment was mostly pessimistic about the future.

Four in 10 respondents are neutral about the economy, while more than a quarter (27%) think it is 'quite good'. Although only one out of five respondents (21%) think the current economy is quite bad, Singaporeans are not very optimistic about the future economy. Over 60% of Singaporeans think the economy is either getting worse, or has stopped getting worse but shows no signs of recovery yet. The older generation, defined as those aged 45 to 54 seems to be more pessimistic about the economy, with 45% saying the economy is still getting worse.

Half of Singaporeans (49%) think the 2016 Budget is fair, although three out of five respondents do not think it will make much difference to themselves or their families in the next 12 months. A further one of five do not consider it fair.

In the next 12 months, nearly a third of Singaporeans (32%) think the 2016 Budget will leave the country better off, while 11% think the Budget will leave the country worse off. However, there are over 40% of them who think it will not make much of a difference to the country.

In terms of priorities, all initiatives raised at the 2016 Singapore Budget scored over 3.0 out of a scale 1 to 5, where 1 equals 'wrong priority' and 5 means 'high priority' except for one. The National Outdoor Adventure Education Masterplan** was ranked the lowest by respondents (2.79). When the majority of Singaporeans are not optimistic about the future economy, it is understandable that people want socially-vulnerable groups to get more protection from the government. In this sense, Singaporeans gave the highest scores to Workfare Income Supplement (WIS) Scheme** and Silver Support Scheme** (both scored 3.96).

In terms of ideas, Singaporeans gave the Silver Support Scheme the highest score (4.01) out of a scale 1-5, where 1 equalled a 'very bad idea' and 5 meant an 'excellent idea'. The initiative of giving out a one-off GST voucher** ranks second in terms of idea with a score of 3.99, while the Workfare Training Support Scheme** ranks third with a score of 3.98.

Looking ahead, 70% of Singaporeans think the government should place more emphasis on the cost of living in the next year. This outpaced all other suggestions. Around half of the respondents vote for employment (49%), 43% vote for healthcare, 35% vote for ageing population, and 34% voted for economic stability.

Interested?

View the WorkSmart Asia blog post on the Singapore Budget

Hashtag: #SGBudget2016

*Data was collected from YouGov’s panelists in Singapore over 26 to 28 March 2016 and was weighted to be representative of general population. Sample: Singapore (n=986 with 49% male and 51% female)

**The National Outdoor Adventure Education Masterplan includes a new Outward Bound Singapore (OBS) campus to be built on Coney Island.
WIS covers higher payouts and more support for disabled workers and low-wage earners.

In the Silver Support Scheme, eligible seniors will receive between S$300 and S$750 every quarter, depending on the type of flat that they live in.
One-off GST vouchers: Eligible recipients will receive a special payment of up to S$200 cash in 2016. In total, eligible households can receive up to S$500.
Workfare Training Support Scheme: Currently for low-wage workers who are 35 and above, this scheme will be extended to those with disabilities.

China business confidence remains soft

A modest recovery in overall business confidence masked a pullback in activity in December, as China's largest firms continued to grapple with lower demand and an uncertain business environment. Companies did not expect to see a significant improvement in early 2016, with the Future Expectations Indicator remaining close to last month's series low said MNI Indicators, part of Deutsche Borse Group. The company offers macro-economic data and insight to businesses and the investment community.

The MNI China Business Sentiment Indicator*, a gauge of current business sentiment, rose 5.6% to 52.7 in December from 49.9 in November, edging back above the 50 level that separates expansion from contraction. In spite of the bounce back, overall confidence wasn't able to recover to October's level. The slowdown in China this year has been confirmed, with the 2015 average falling to 52.2 from 53.9 in 2014 and well below the series average of 58.1.

Real activity measures in the survey continued to decline, losing further ground from the sharp rise in August with both new orders and production now sitting below their long-run averages. Monetary policy loosening has had a material impact on production and new orders in 2015, although the tendency for the indicators to fall back shortly after any rate cuts suggests that more is required to meaningfully revive demand.

Other areas of the report showed that credit conditions continued to remain relatively loose, although a smaller majority reported that loans were easier to access. Following the IMF's decision to include the yuan in the Special Drawing Rights basket a greater proportion of respondents said that the exchange rate was helping their business, while companies were roughly evenly split on whether the exchange rate over Q116 will help or hurt their operations.

Commenting on the latest survey, Philip Uglow, Chief Economist of MNI Indicators said, "It has been a choppy year for the Chinese economy with volatility in the MNI China Business Sentiment Indicator at the highest since 2009, while GDP for the year is likely to grow at the slowest pace in 25 years. Still, the relatively modest easing in the MNI China Business Sentiment Indicator over the year as a whole suggests China is undergoing more of a bumpy rather than hard landing.

"While our expectation is that growth over 2016 will likely ease further, continued reforms and a gradual structural shift in the economy away from industrial overcapacity towards greater depth in the service economy will pave the way for more sustainable growth in the long-term."

*MNI China Business Sentiment is a monthly poll of Chinese business executives at companies listed on either the Shanghai or Shenzhen stock exchanges. Companies are a mix of manufacturing and service sector firms.

The survey tracks and predicts Chinese economic conditions and is an indicator of GDP. Data is collected through computer aided telephone interviews (CATI) and around 200 companies are surveyed each month.
Respondents are asked their opinion on whether a particular business activity has increased, decreased or remained the same compared with the previous month as well as their expectations for three months ahead, e.g. is Production higher/same/lower compared with a month ago?

Diffusion indicators are then calculated by adding the percentage share of positive responses to half the percentage of those respondents reporting no change. An indicator reading above 50 shows expansion, below 50 indicates contraction and a result of 50 means no change. Series which show a seasonal pattern are seasonally adjusted using the US Census Bureau's X12 seasonal adjustment program. Seasonal factors are calculated annually.