Wednesday, May 20, 2009

Second Wave of Economy Recession for Singapore?

Though present indicators of our economy are benign: the steady rise of the Straits Times Index (STI), my take is that our economy will be turning for the worse in the coming two months.
Some tell tale signs are as follows:
a) Recommendation of the National Wages Council to implement 3 'no-pay' leaves for firms in Singapore.
b) Temasek's recent sales of its stake in BOA (Bank of America). If the economy is still promising, Temasek would still have held on to the shares for a little time more and not selling it at the current low, incurring some billions of dollars in loss.
Thus, my take is that Singapore's economy will not be out of the woods soon, the economy will be contracting again and in my opinion, the government is also on the lookout to time the date of the General Elections with a window of good or 'at least better' economy.

No comments :

Total Pageviews