A poll conducted by the Singaporean-German Chamber of Industry and Commerce (SGC) has found that 92.1 per cent of respondents anticipate that the current financial crisis will affect the demand for their companies' products or services in the next six to 12 months.
Of these, 30 per cent experience or are expecting some major negative impact of the current economic climate.
The poll regarding the economic impact of the current financial crisis amongst members was responded by 10 per cent of the members in SGC.
However, 34.2 per cent said that their companies' plans to invest in growth or expansion will not be affected, whereas 44.7 per cent expected reduced growth.
Half of the companies said that they would defer recruitment, while 25 per cent would not. Half of the companies also said that salary increments would be smaller.
More than half of them said that they would introduce cost-cutting measures, citing the need for increased efficiencies. A third has forecast weaker net profits.
Risk-taking among German companies are also unfavourable for 44.7 per cent of companies although 30 per cent still are able to.
Research and development (R&D), a crucial aspect of businesses, has also been shelved for around 75 per cent of the companies surveyed.
Half of the respondents also expressed concerns about the viability of their businesses in this economic turmoil, and the same number reveal difficulties in obtaining finances.
Some 40 per cent of the companies experience delays in customers paying up.
Still, many companies are still holding up in spite of these tough times, and are adopting a 'wait-and-see' stance.
This article was first published in The Business Times on December 11, 2008.
