(I)	Business Sentiments for January – June 2011
1.	The manufacturing business climate is expected to remain positive in the next six months ending June 2011. The latest survey shows a weighted 27 per cent of manufacturers expecting business conditions to improve while a weighted 7 per cent foresee deterioration. Overall, a net weighted balance of 20 per cent of manufacturers expect business situation to improve in the first half of 2011 compared to the fourth quarter of 2010.
2.	The positive business sentiment is broad-based with all clusters projecting improved business conditions in the coming six months. The transport engineering cluster is the most upbeat, with a net weighted balance of 55 per cent of firms expecting business situation to improve in the period January-June 2011 compared to the fourth quarter of 2010. Within the cluster, the marine and offshore engineering segment expects more orders from the offshore oil and gas industry as the price of crude oil rises. The aerospace segment also foresees a higher level of maintenance, repair and overhaul activity in anticipation of a recovery in the aviation industry.
3.	The electronics cluster is the next most optimistic, with a net weighted balance of 14 per cent of electronics manufacturers expecting an improved business situation in the first half of 2011 compared to the fourth quarter of 2010. The computer peripherals and semiconductor segments express positive sentiment as they predict continued demand for computing and consumer electronics products in the months ahead. The rest of the manufacturing clusters also expect a healthy business outlook in the coming six months as the global economy shows signs of steady improvement.
(II)	Output Forecast for January – March 2011
4.	Compared to the fourth quarter of 2010, a net weighted balanced of 17 per cent of manufacturers expect output to increase in the first quarter of 2011.
5.	The biomedical manufacturing cluster is the most upbeat, with a net weighted balance of 54 per cent of firms projecting a higher level of production in the first quarter of 2011 compared to the fourth quarter of 2010. Both the pharmaceutical and medical technology segments foresee higher output with improved demand. The transport engineering cluster is the next most positive, with a net weighted balance of 33 per cent of firms predicting higher output. The cluster expects a higher level of activity in the aerospace and marine & offshore engineering segments in the next three months.
6.	On the other hand, a net weighted balance of 8 per cent of the chemicals cluster and 2 per cent of the general manufacturing clusters expect lower production in the first three months of 2011 compared to the preceding quarter. The chemicals cluster projects a lower level of output due in part to the scheduled maintenance shutdowns in the petroleum refining segment. In the general manufacturing industries cluster, the printing segment projects a lower level of activity in the first quarter of the year, which is consistent with the seasonality of the industry.
(III)	Employment Forecast for January – March 2011
7.	Employment prospects in the manufacturing sector for the first quarter of 2011 are expected to remain positive. Among all the manufacturers polled, a weighted 93 per cent of them expect employment level in the first quarter of 2011 to increase or remain similar, compared to the fourth quarter of 2010. Within the manufacturing sector, the transport engineering, chemicals and the electronics clusters are the most optimistic about employment opportunities in the three months ahead.
(IV)	Factors Affecting Export Orders for January – March 2011
8.	A weighted 53 per cent of firms in the manufacturing sector reported no limiting factors that will affect their ability to obtain direct export orders in the first quarter of 2011. Of the weighted 42 per cent of firms that indicated export constraints, price competition, strong Singapore dollar and economic uncertainty in Europe are cited as the leading constraints.
	Editors' Note:   For media enquiries, please contact  Ms Karen Lin  (Tel: 6832-6587 / hp: 9623-0355 / Email: karen_lin@edb.gov.sg). For further information on the business expectation results, please contact  Ms Leong Pui Ling  (Tel: 6832-6737 / hp: 9877-2580 / Email: puiling@edb.gov.sg). Updates on business expectations of the manufacturing sector for the first quarter of 2011 are available on http://www.news.gov.sg and http://www.sedb.com
	Technical Notes The Survey of Business Expectations of the Manufacturing Sector for the first quarter of 2011 was conducted between December 2010 and January 2011 by the Economic Development Board. Out of a total of 401 manufacturing establishments surveyed, 93 per cent responded. These establishments were asked to indicate their expectation of general business conditions and other indicators such as output and employment. Their views are expressed in terms of directional change (i.e. "up", "same" or "down"). Individual responses provided by the establishments are weighted by their contribution to employment and value added. These responses are then aggregated at cluster, sub-cluster and overall manufacturing level, and presented in terms of weighted percentages. The net weighted balance is commonly used to reflect the direction and extent of the business sentiments. It is the difference between the weighted percentage of 'up' responses and the weighted percentage of 'down' responses. For example, if weighted responses for overall manufacturing output yields a net weighted balance of +30 per cent, the plus sign before the percentage figure indicates a positive balance or net upward movement, and not a 30 per cent increase in output. Similarly, a minus sign before the percentage indicates a downward trend and not a decline by that amount. About the Singapore Economic Development Board The Singapore Economic Development Board (EDB) is the lead government agency for planning and executing strategies to enhance Singapore's position as a global business centre.  We dream, design and deliver solutions that create value for investors and companies in Singapore.  Our mission is to create for Singapore, sustainable economic growth with vibrant business and good job opportunities. For more information on how EDB can help your business, please visit www.sedb.com