Business performance and profit margins of machinery traders could be negatively affected by the ongoing trade dispute between China and the United States.
- Growth of Singapore´s machinery and engineering sector is driven by demand for semiconductor and industrial process control equipment as well as refrigeration/cooling systems. Further expansion in 2018 and 2019 will be sustained by robust industrial production growth (8% and 4% respectively). However, business performance and profit margins of machinery traders could be negatively affected by the ongoing trade dispute between China and the US.
- The gearing of machinery businesses is rather low, as most machinery manufacturers in Singapore are parts of global groups, supported by intercompany loans. Banks are not restrictive in lending to the industry.
Read the full report here: Market Monitor Machines Singapore 2018
