ACCOUNTANTS EXPECT ECONOMY TO GET WORSE
The profession cites sales growth, collections and high costs as top concerns for business during this economic downturn
16 February 2009, Singapore -- According to the latest CPA Singapore Business Confidence Index, accounting professionals are not confident about the economic outlook. 95 per cent of the respondents rated the current Singapore economic conditions as less favourable now compared to six months ago. 86 per cent of them also expect the economy to worsen. Given that opinion, it is not surprising that 75 per cent of them expect their business situation to worsen in the next six months as expressed in their responses.
A high 44 per cent indicated that sales growth is the topmost concern of businesses, according to the survey that was conducted between 2 to 15 January 2009 amongst members of Institute of Certified Public Accountants of Singapore (ICPAS). Accountants are also worried about collections, which is the second top concern of businesses as voted by thirty per cent of those who participated in the survey, suggesting that they are affected by uncollected receivables. The survey also revealed that businesses also grapple with high costs during the economic downturn, which is third in ranking for top business concerns as voted by 28 per cent of the respondents. Attracting talent and staff retention seem to be the least worries of businesses for now.
Accountants’ economic expectations, though gloomy, do not appear to be holding back on investment during this crisis. More than half of the respondents (58 per cent) shared that their companies will be increasing or maintaining their level of investment. A slightly smaller percentage (42 per cent) indicated that they are looking at reducing investment.
Healthcare as well as Information & Communications are two sectors enjoying a brighter outlook, as voted by ninety per cent and seventy per cent of the respondents respectively. Conversely, Manufacturing, Wholesale & Retail Trade, Hotels & Restaurants as well as Financial Services are expected to be the worst hit during this difficult time.
Only a quarter of the respondents expect their workforce to be reduced while seventy per cent of them indicted that they are looking at maintaining their workforce. Some, at least, can expect an increase in head count but this is only a small percentage (six per cent).
Commenting on the results, Dr Ernest Kan, ICPAS Vice-President said, ”Maintaining investment and sustaining the current level of workforce suggest that companies are hanging on and fighting the economic turmoil. Although battered, they remain resilient. This is a positive sign. Coupled with the Government’s well thought-out and calibrated approaches to counter the financial crisis, we are well poised to ride out this storm.”
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About Institute of Certified Public Accountants of Singapore
Established in June 1963, the Institute of Certified Public Accountants of Singapore (ICPAS) is the national accountancy body that develops, supports and enhances the integrity, status and interests of the accountancy profession in Singapore.
The Certified Public Accountant Singapore (CPA Singapore) is a professional in accountancy, finance and business who has the relevant work experience in addition to a recognised accountancy qualification. They are highly versatile and well sought after as business leaders beyond the accountancy, banking and finance industries.
Today, the Institute of Certified Public Accountants of Singapore (ICPAS) has over 20,000 members and/or CPAs Singapore working and making their mark worldwide, which makes the CPA Singapore a designation with international recognition.
ICPAS’ international outlook and connections are reflected in its membership of regional and international professional organizations like the ASEAN Federation of Accountants (AFA), the Asia-Oceania Tax Consultants’ Association (AOTCA) and the International Federation of Accountants (IFAC).
The Institute also caters for the training and professional development of its members through regular courses conducted by its training arm, the Singapore Accountancy Academy (SAA).
For more information, please contact:
Ms Catherine Chan
Communications Manager
Institute of Certified Public Accountants of Singapore
Tel: 65 6749 8060 Ext 813
Fax: 65 6749 8061
Email: catherine.chan@icpas.org.sg
Ms Natalie Leung
Communications Executive
Institute of Certified Public Accountants of Singapore
Tel: 65 6749 8060 Ext 817
Fax: 65 6749 8061
Email: natalie.leung@icpas.org.sg
