SINGAPORE, 15 APRIL 2011 – Singapore companies are to increase IT expenditure in 2011-2012, according to the latest edition of the Regus Business Confidence Index, which is based on the opinion of more than 17,000 companies from around the world.
Twenty-six per cent of Singapore companies polled said they will be increasing IT expenditure against a global average of 33 per cent.
This is encouraging news for businesses as 74 per cent of Singapore companies reported a decrease in IT expenditure against a global average of 67 per cent.
In fact, all of the countries polled in the Asia Pacific have reported a decrease in IT expenditure, which has potential impact on productivity and profits.
The latest edition of the Regus Business Confidence Index clearly shows that business confidence in Singapore has grown since 2010, and revenues and profits are increasing in line with expectations revealed in last year’s index.
More than two thirds of Singaporean companies polled for this year’s index said they have experienced a rise in revenue, and about 61 per cent reported healthy profit growth.
An overwhelming 82 per cent of companies in Singapore said they expect their company revenues to rise in the next 12 months.
Although departmental spending is set to increase in 2011, companies have decided to maintain a strict cost control policy in the property area. About 74 per cent of companies in Singapore intend to freeze or cut their property spending this year.
“That business confidence is returning is great news as is the fact that so many Singaporean companies are reporting rising revenues and profit. As many as 70 per cent of Singapore companies polled reported increased company profits,” said Filippo Sarti, CEO, Asia Pacific. “However, it would seem that firms are only investing where there is a clear bottom line return, such as sales and marketing, whereas spending on property will continue to decline in 2011.”
“We have seen remarkable changes here in Singapore since the global recession and dire economic state of just a few years ago. Due to the hard-hitting consequences of the recession, however, businesses now prefer to minimise risks by opting for more flexible and scalable work arrangements for employees.”
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