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Companies in Singapore remain optimistic about profit growth

Published on Apr 22, 2014 5:01 PM
 
The Singapore Central Business District (CBD) skyline in the evening on Jan 27, 2014, showing the skyscrapers which house offices and banks. Chief financial officers (CFOs) in Singapore are more optimistic about profits than revenue this year, based on a new survey. ST FILE PHOTO: DESMOND WEE

SINGAPORE - Chief financial officers (CFOs) in Singapore are more optimistic about profits than revenue this year, based on a new survey.

Although only 61.3 per cent of the 33 CFOs here polled by Bank of America Merrill Lynch (BAML) expect higher revenues this year, 67.7 per cent believe profits will increase.

This negative "margin gap" - the difference between the proportion of CFOs expecting revenue growth and those expecting profit growth - is only seen in Singapore and Malaysia out of the 12 countries in BAML's 2014 CFO Outlook Asia survey.

BAML's Southeast Asia head of corporate banking Gregory Seow said this could be a result of Singapore and Malaysia being more experienced in handling cross-currency volatility.

 
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