In the TV news, we heard manufacturing sector in Singapore has contracted. What does this mean for most Singaporeans who are in the sales, operations, service sector and not manufacturing industry?
It means that the demand for Singapore goods is coming down. When the demand for goods reduced, we can be sure that the transportation industry will contract as well. Retail shops may find that they are unable to clear their stock. Shoppers may find “Sale” at every location. If this persists for a long enough time, “Sale” will become “closing down Sale”.
The manufacturing sector contraction may signal a general slowdown in the economy in next year. If the slowdown persists for a year, sooner or later companies may have no choice but to retrench workers.
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