By Nicholas Fang

SINGAPORE'S rising cost of living continues to be a major concern for American companies doing business here, according to a new survey.

The American Chamber of Commerce in Singapore (AmCham) conducted its Business Outlook Survey for the year last month and it showed that a growing number of US firms are concerned about inflation.

Respondents to the survey, which is into its seventh year, comprised AmCham members who are senior executives working with a firm held by, or with, an American interest.

According to the survey, which received responses from 130 AmCham members here and 535 throughout the region, 74 per cent of the respondents here said they are dissatisfied with office lease costs.

This compares with 45 per cent last year, said AmCham acting executive director Andrew Benbow yesterday.

'Costs of living and housing are major concerns for most respondents in Singapore,' he said at a press conference.

'Not a single respondent expects the cost of living...to decrease this year, whereas 69 per cent expect housing costs to increase while 95 per cent expect the cost of living to increase.'

More people expect the world economy to fare worse this year.

Last year, 11 per cent believed the world economy would worsen, compared with a whopping 68 per cent this year.

When asked about their fears for the US economy, 76 per cent said they believe the country will be hit by a recession this year.

Of these, 67 per cent believed this would have a negative effect on their business in Asia and 62 per cent expected the recession to last between 12 and 18 months.

This article was first published in The Straits Times on 23 July 2008.