Singapore's gross fixed capital formation to inch up 0.5% in 2017
Infrastructure projects worth $700m will commence in FY17-18.
RHB Research expects gross fixed capital formation in Singapore to increase 0.5% in 2017, a rebound from a contraction in 2016, supported by a low base effect and a ramp-up of existing public infrastructure projects.
Here’s more from RHB Research:
The Government further announced the acceleration of S$700m worth of public sector infrastructure projects to start in FY17-18.
However, the size and impact of these measures are expected to be small. At the same time, private investment is expected to remain tepid, as external demand is still fraught with risks, not to mention the impending increase in water tariffs and yet-to-be determined carbon tax costs.
Moreover, the domestic supply of residential and industrial properties coming online is set to peak this year.
On the whole, we expect domestic demand to climb 0.6% in 2017, after barely growing in 2016.
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