This month saw the PMI or purchasing manager's index shrink to 47.8, the lowest in 6 months and proves that on the whole, the economy is suffering a technical recession, where 2 successive quarters have contracted with the previous ones, so Singapore is in a recession. Its yet to be felt, but people in the know are quietly disposing the additional or non-essential assets to ride through, should the measures and jobs situation get worse.
I for one, and doing just that, but I am also hedging my bets so to speak, by selling anything and everything wherever I can, leveraging on contacts, goodwill, and even friendship. Its the time for boys and goondhus (stupid fellows) to grow up and experience first hand, how it is to survive in the dog-eat-dog world.
Singapore may be well poised with a compliant workforce, competitively priced, but rents costs and dollar costs per worker (including levies) are far higher than many other countries. We have no choice but to move up the value chain. If the new 'big thing' doesn't materialise for say 6 months - that is a killer product which will get everyone, to buy, such as the IPhone 5 or the move towards a greener earth leading to green based products, we will be facing the worst scenario, stagflation, whereby the economy will stagnate or even stay in negative zone while inflation (weakining of money) goes on unabated. Singapore needs to manufacture, and export things, 20% - 25 % of our workforce are employed in this sector, and contributes to 1/12 th (8% ) of the overall GDP. Furthermore, with the interrelation of things, banks and lenders will be hit too, with foreclosures and monetary recalls.
Its a scary thought.
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