Construction, transportation, and financial sectors show the most optimism.
Singapore’s business confidence remains cautiously optimistic for the first quarter of 2025, as reflected in the latest Business Optimism Index (BOI) by the Singapore Commercial Credit Bureau (SCCB).
Rising Business Optimism
Data released on Dec 16 shows that the BOI increased for the sixth consecutive quarter, reaching +5.45 percentage points for Q1 2025, compared to +5.06 in Q4 2024 and +4.48 in Q1 2024.
Four out of six BOI indicators—volume of sales, net profits, selling price, and new orders—showed quarterly improvements.
The manufacturing sector displayed visible improvement, with five of six indicators in positive territory, up from two in the previous quarter.
The construction, transportation, and financial sectors were the most optimistic, maintaining positive trends across at least four key indicators.
Sector-Specific Trends
Construction Sector: Inventory levels dropped to zero percentage points from +7.69 in Q4 2024.
Transportation Sector: Selling price growth moderated to +8.44 percentage points, down from +16.67.
Financial Sector: Selling price growth fell to zero percentage points, down from +7.14.
Wholesale Trade: Sentiment weakened, with only two indicators in positive territory, compared to four in the previous quarter.
Outlook Amid Global Uncertainty
Despite a three-year high in business sentiment, SCCB chief Audrey Chia cautioned that geopolitical risks and global trade uncertainties could impact growth.
“We remain cautiously optimistic for the year ahead,” Chia said.
