DigitalCFO Newsroom | 7 January 2022
Singapore’s GDP is predicted to expand 3.0 to 5.0 percent in 2022, according to the Ministry of Trade and Industry, even as the world continues to struggle with the pandemic and its newest Omicron form (MTI).
Singapore’s GDP is predicted to expand 3.0 to 5.0 percent in 2022, according to the Ministry of Trade and Industry, even as the world continues to struggle with the pandemic and its newest Omicron form (MTI).
Our employment numbers show the recovery of the economy. Total employment had fallen by 196,400 by the third quarter of 2021 (3Q2021), resulting in a final unemployment rate of 2.7 percent. Indeed, as of Q32021, the ratio of job openings to jobless people was 2.09: 1 (i.e., there were 209 job openings for every 100 unemployed people). For job searchers, this is good news. Furthermore, according to ManpowerGroup’s employment outlook for 1Q2022, 39 percent of Singapore’s 505 businesses aim to recruit in 2022.
The following are the four industries that are projected to perform well in 2022.
Finance And Insurance
The banking, finance, and insurance industry accounts for 15.7 percent of GDP in 2020, making it the third greatest contributor to GDP. The banking and insurance sector grew by 9.0 percent year over year in 3Q2021, continuing the 9.8 percent rise from the previous quarter.
The insurance category, which was fueled by a demand for life insurance products, was the key driver of the sector’s significant development. As overall business activity expanded, general insurance premiums increased. Despite the surge in e-payments, supporting activities such as payment processing services performed well. Similarly, sentiment-sensitive segments (fund management, security trading activities, and currency) continued to grow strongly. The banks segment grew at a slower rate than the other categories, owing to a slower increase in net fees and commissions.
According to Manpower Group’s employment forecast for 2022, 28% of companies in the banking, finance, insurance, and real estate sectors intend to hire.
Information, Communications And Technology (ICT)
The demand for IT and digital solutions is likely to propel the Infocomm Tech sector. With the pandemic hastening digitization across several industries, including hawkers and elders adopting contactless payment, the shift to digital alternatives is unavoidable, and the ICT sector is poised to grow.
According to Minister for Communications and Information Josephine Teo, committed investments acquired by the Economic Development Board in 2019 and 2020 will result in the creation of about 20,000 new digital employment. These digital positions will be found in industries such as manufacturing, professional services, biomedical, and others that are adapting to the digital age.
Services
In 3Q2021, total services trade increased by 7.5 percent year over year. During the quarter, both exports and imports of services increased. Other commercial services, such as financial services and repair and maintenance services, contributed significantly to the increase in service exports. Imports of other commercial services, such as manufacturing and telecommunications, computer, and information services, accounted for the majority of the growth in service imports.
Expectations for service firms in terms of hiring were likewise positive. According to the latest Business Expectations Survey for the Services Sector from Statistics Singapore, 10% of service firms anticipate to hire more in the fourth quarter of 2021 than in the third quarter. While enterprises in the retail trade sector had the strongest recruiting sentiments, all service sectors indicated a favorable hiring outlook. In the fourth quarter, 29% of retail trade enterprises expected to hire more people. Only 4% of real estate firms, on the other hand, is expected to increase their workforce in the fourth quarter.
Manufacturing And Wholesale Trade
Despite its small size and location on the globe map, Singapore has a thriving manufacturing industry (mainly electronics, chemicals, biomedical and precision engineering). The manufacturing sector will continue to contribute 21.5 percent of Singapore’s GDP in 2020, up from 20.9 percent in 2019.
According to the EDB’s latest Business Expectations Survey for the Manufacturing Sector, the sector’s recruitment plans are positive, with a net weighted balance of 11% of manufacturers intending to hire more in the fourth quarter of 2021 than in the third quarter.
The electronics and precision engineering clusters are expected to continue to grow in the manufacturing sector, owing to strong global demand for semiconductors.
SOURCE: Yahoo Finance
