Economic News

Singapore PMI March 2017

Singapore: Manufacturing PMI rebounds slightly in March

April 5, 2017

The manufacturing PMI produced by the Singapore Institute of Purchasing & Materials Management (SIPMM) edged up from 50.9 in February to 51.2 in March, the best result since November 2014. The index thus moved further above the 50-point threshold that separates expansion from contraction in the manufacturing sector.

March’s result reflected an improvement across the board. Growth in new orders, new export orders and output was faster than in the previous month, with the latter registering the best result in almost two and a half years.

Meanwhile, the electronics PMI increased from 51.4 in February to 51.8 in March.

FocusEconomics Consensus Forecast panelists expect manufacturing output to grow 0.8% in 2017, which is down 0.7 percentage points from last month’s forecast. For 2018, the panel sees manufacturing output expanding 1.5%.


Author: Massimo Bassetti , Economist

Singapore PMI Chart



http://www.focus-economics.com/coun.../manufacturing-pmi-rebounds-slightly-in-march

For Singapore, 2016 was a terrible year but 2017 looks much better. This will have a spill-over effect on Johor when the hiring further picks up in Q2 2017.

FHBH12 said:

For Singapore, 2016 was a terrible year but 2017 looks much better. This will have a spill-over effect on Johor when the hiring further picks up in Q2 2017.

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Johor property will be great again!! :p

potter said:

Johor property will be great again!! :p

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Volume in Singapore is picking up recently, this signals stability in the 2nd half if this year. Johor's property market (especially high end condos) are still struggling, and it is still strongly a buyers' market this year.

Johor’s new high-end high-rise homes may dip below their launched prices this year
February 1, 2017
https://theedgeproperty.wordpress.c...ay-dip-below-their-launched-prices-this-year/

Foreign selldown of Malaysian govt bonds hit record high in March

Foreign ownership of Malaysian government bonds in March fell for the fifth straight month at a record RM27.5 billion!
The highest ever bond sell-off by foreigners in March was driven by the Malaysian Government Securities (MGS) (-RM23.0 billion), followed by Bank Negara Malaysia Bills (-RM3.4 billion) and Government Investment Issues (-RM600 million).

Why are foreign investors dumping Malaysian bonds so swiftly???

http://www.thesundaily.my/news/2017...wn-malaysian-govt-bonds-hit-record-high-march

snowbird said:

Foreign selldown of Malaysian govt bonds hit record high in March

Foreign ownership of Malaysian government bonds in March fell for the fifth straight month at a record RM27.5 billion!
The highest ever bond sell-off by foreigners in March was driven by the Malaysian Government Securities (MGS) (-RM23.0 billion), followed by Bank Negara Malaysia Bills (-RM3.4 billion) and Government Investment Issues (-RM600 million).

Why are foreign investors dumping Malaysian bonds so swiftly???

http://www.thesundaily.my/news/2017...wn-malaysian-govt-bonds-hit-record-high-march

Click to expand...

With the rising interest rate, there are better options out there than the Malaysian govt bond. Especially given that RM is a depreciating currency....No surprise that people are switching to bonds from other nations.

Economy grows 2.5% in first quarter, aided by strong manufacturing

PUBLISHED APR 14, 2017, 5:00 AM SGT

Chia Yan Min Economics Correspondent

Singdollar policy unchanged as MTI's flash estimates indicate uneven showing across sectors

The brighter global outlook boosted Singapore's economy in the first quarter, with manufacturing and other trade-dependent sectors enjoying an uptick.

But not all industries are feeling as buoyant. Sentiment in the service and construction sectors remains muted, according to preliminary statistics released yesterday by the Ministry of Trade and Industry (MTI).

This uneven performance prompted the central bank to keep its Singapore dollar policy unchanged in its latest policy review, also released yesterday.

The economy expanded 2.5 per cent in the three months to March 31, according to MTI advance estimates, which take into account data from the first two months of the quarter. This was marginally slower than economists' estimates of 2.6 per cent growth.

The first quarter's modest pace of growth was boosted largely by a strong showing in the manufacturing sector, whose output rose 6.6 per cent over the same period a year earlier.

Manufacturing, which makes up one-fifth of the economy, is benefiting from a more positive global outlook and strong demand for electronics, especially semiconductors.

But there have been areas of weakness in the sector: The biomedical manufacturing, transport engineering and general manufacturing clusters all saw a slide in output in the first quarter, MTI data showed.

The service sector, which makes up two-thirds of the economy, grew 1.5 per cent, while construction shrank 1.1 per cent, weighed down by a slowdown in private- sector building.

"Over the last six months, the global economy has picked up and should continue to support Singapore's trade-related sectors. However, activity across the broader domestic economy is likely to be uneven, and overall growth in 2017 will remain modest," the Monetary Authority of Singapore (MAS) said in its policy statement.

In addition, while higher oil prices have pushed up Singapore's inflation rate in recent months, the labour market remains weak and the overall economic environment is still lacklustre.

This limits the extent to which companies can pass on higher costs to consumers, the central bank noted.

As a result, it kept its monetary policy stance unchanged.

MAS uses the exchange rate as its main monetary policy tool to strike a balance between inflation from overseas and economic growth.

The rate is allowed to float within a policy band that the central bank can adjust when it reviews monetary policy.

The Singdollar policy band is on a path of zero appreciation against the currencies of key trading partners - a neutral policy stance that was put in place last April.

This stance "is appropriate for an extended period" even amid modest improvements in both economic growth and inflation, MAS said in its policy statement.

Official forecasts tip economic growth of 1 per cent to 3 per cent this year, "not markedly different" from last year's 2 per cent expansion.

DBS economist Irvin Seah expects yesterday's first-quarter advance estimates for economic growth to be revised upwards when final numbers are released next month, largely due to the improving global outlook.

"That said, the turnaround thus far has been uneven and restricted to just a few clusters. The rest of the economy has yet to feel the uplift, and the labour market has also remained soft," he noted.

"Plainly, there is enough leeway for the MAS to maintain status quo on monetary policy for now, given the uneven pace of the recovery."

UOB economist Francis Tan agreed, adding that "unless economic conditions change drastically and beyond the central bank's expectations over the next six months", the status quo will likely also be maintained at the next policy meeting in October.

http://www.straitstimes.com/busines...n-first-quarter-aided-by-strong-manufacturing

After tightening its Capital Control few months back, it seems to be helping contain outflow with the Chinese Foreign Reserves is showing steady improvement.
Apparent, the Reserves increased $3.96 billion during March to total $3.009 trillion.
So, its working, slowly but its working.
Which also means, the capital control is here to stay for a while.



Wow, China actually accumulated US$3 trillions in just 15 years!

So, when the Chinese govt. decides to "slightly loosen" the capital control will depends very much on how much results they are looking forward to achieve.
So, when droves of Mainland Chinese flocking to buy properties outside China will depends when this will happen.

Be prepared to pay more for the same things in Malaysia from now on!!

And the result of low stagnant salary, rising cost of living, living beyond their means, high inflation...............

Cuepacs: Up to 100,000 govt staff may soon become bankrupt

Cuepacs : Congress of Unions of Employees in the Public and Civil Services


http://www.thestar.com.my/news/nati...may-soon-become-bankrupt/#E9Do5fY84QXuy8Eu.99