An increasing number of US companies in Singapore are now expecting growth in profit and headcount growth, compared with 2009, though office rentals, international school places and housing costs have emerged as business concerns.
“There are great expectations for this year, and with the increased optimism, investments and inflow of employees, there are also challenges,” said Steve Okun, chairman of the American Chamber of Commerce, in a briefing to present the findings of its survey.
The survey found that the most bullish profit outlook in the region came from the 81 US firms based in Singapore, with 73 percent and 85 percent expecting growth by this year and next year, respectively.
Over 70 percent of the US companies in Singapore also expect headcount growth this year, while only 21 percent expect hiring more expatriates.
However, some worries have re-surfaced along with the positive business and economic news, with 78 percent of American businessmen are now unhappy with housing costs in Singapore compared to 55 percent last year, as majority of them are expecting housing costs to increase.
“This is coupled with an expected appreciation in the Singapore dollar, which means American expatriates here are hit both on the currency and rising rentals fronts,” said Mr. Okun.
Mr. Okun also believes that office lease costs will be a concern for Singapore-based US firms in the coming months, though fewer expressed concern over this issue.
More respondents also expect a shortage of international school places in the coming years. More companies said that the lack of international school places affects their decision to hire American workers, from 30 percent a year ago to 72 percent this year.