(I)	Business Sentiments for April – September 2011
1.	Business sentiments in the manufacturing sector are expected to remain positive for the period April to September 2011 compared to the first quarter of 2011. The latest survey showed a weighted 19 per cent of manufacturers expecting business conditions to improve while a weighted 7 per cent foresee deterioration. Overall, a net weighted balance of 12 per cent of manufacturers anticipate a more favorable business situation in the next six months ending September 2011 compared to a quarter ago. However, this sentiment is weaker than the net weighted 20 per cent recorded a quarter ago due to high oil prices and uncertainties in global economic conditions.
2.	Within the manufacturing sector, the transport engineering cluster is the most optimistic. A net weighted balance of 31 per cent of firms in the cluster expect business situation to improve for the period April to September 2011 compared to a quarter ago. Within the cluster, the marine and offshore engineering segment expects to secure more orders as offshore activities increase on the back of higher oil prices. The land segment also foresees improved orders in anticipation of better business opportunities ahead.
3.	The general manufacturing cluster is the next most optimistic, with a net weighted balance of 18 per cent of firms in the cluster expecting business situation to improve in the next six months ending September 2011. The cluster expects demand to pick up after the festive holidays in the first quarter.
4.	The rest of the manufacturing clusters also expect business conditions in the next six months to either improve or remain similar to the first quarter of 2011. However, there are concerns over high oil prices in the chemical cluster; while some firms in the electronics and precision engineering clusters are concerned about the disruption in supply of raw materials and components arising from Japan's earthquake.
(II)	Output Forecast for April – June 2011
5.	Compared to the first quarter of 2011, a net weighted balanced of 10 per cent of manufacturers expect output to increase in the second quarter of 2011.
6.	The transport engineering cluster is the most upbeat, with a net weighted balance of 23 per cent of firms predicting higher output. In particular, the marine & offshore engineering segment foresees higher levels of rig and conversion activities in the next three months. The general manufacturing cluster is the next most upbeat, with a net weighted balance of 17 per cent of firms forecasting a higher level of production in the second quarter of 2011, compared to the seasonally less active first quarter. On the other hand, a net weighted balance of 2 per cent of the chemical cluster expect lower output in the second quarter of 2011 due mainly to scheduled maintenance shutdowns in the petroleum refining segment. A net weighted balance of 9 per cent of the biomedical manufacturing cluster also predict a lower level of active pharmaceutical ingredients output in the next three months.
(III)	Employment Forecast for April – June 2011
7.	Employment prospects in the manufacturing sector for the second quarter of 2011 are expected to remain positive. Among all the manufacturers polled, a weighted 96 per cent of them expect employment level in the second quarter of 2011 to increase or remain similar, compared to the first quarter of 2011. Within the manufacturing sector, the transport engineering, chemicals and the precision engineering clusters are the most optimistic about employment opportunities in the three months ahead.
(IV)	Factors Affecting Export Orders for April – June 2011
8.	A weighted 50 per cent of firms in the manufacturing sector reported no limiting factors that will affect their ability to obtain direct export orders in the second quarter of 2011. Of the weighted 42 per cent of firms that indicated export constraints, price competition from overseas competitors is the most important limiting factor.
(V)	Investment Plans for April 2011 - March 2012
9.	A weighted 72 per cent of manufacturers plan to invest in plant and machinery in the next twelve months (April 2011 - March 2012) compared to the past twelve months, of which a weighted 59 per cent expect higher or similar levels of capital expenditure.  The planned investments are mainly for the replacement of worn-out equipment, expansion of production capacity of existing products and the installation of new production technology.
	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 second 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 second quarter of 2011 was conducted between March 2011 and April 2011 by the Economic Development Board. Out of a total of 401 manufacturing establishments surveyed, 91 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