64 percent of the respondents said their outlook for the economy ranged from neutral to pessimistic.

Inflationary pressure was one of the top reasons for the dim economic outlook among Singapore accountants, with 90 percent of the respondents placing it as their most worrying factor.

Other factors included the credit market turmoil and the cost of labour. But not all were negative.

ICPAS said with the upcoming Formula One, integrated resorts and Youth Olympic Games, there are certain sectors which would remain strong.

Ernest Kan Yaw Kiong, Vice President of ICPAS, said: “There are areas that we believe will grow – such as construction, restaurants, business services as well as the hospitality industry.

“So if you look at all this in a proper context, you can see that while we have some economic turbulence going forward, (we can afford to be) optimistic because we have all these economic activities coming up.”

On the other hand, the outlook for manufacturing, wholesale, retail, transport and storage is slipping. Employment is also not expected to grow.

Nonetheless, ICPAS said Singapore’s fundamentals remain solid.

Mr Kan said: “I believe we have very strong fundamentals. Even with the inflationary pressure, steps that the government has taken are very, very positive. As we go through this economic turbulence, things will work out better in time to come.”

More than 200 respondents took part in the ICPAS Business Confidence Survey 2008. – CNA/so

Source : Channel NewsAsia- 7 May 2008

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