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SINGAPORE: Retailers in Singapore are bracing themselves for a challenging year ahead as they tighten purse strings and seek to reduce costs.
They are concerned over the slowing global economy and fear mega projects such as the integrated resorts may not deliver on their promise to bring in the big-spenders.
According to government numbers for June 2008, big ticket items suffered the most. Combined with a depressed economic environment, sentiment amongst many retailers is gloomy.
Lau Chuen Wei, executive director, Singapore Retailers Association, said: "While I say that they are hoping for low single-digit growth in terms of sales, sales revenue and costs of operations are increasing in double digits. So when you balance the two up, the bottom line is not going to look very rosy."
This pessimistic outlook extends even to the coming Formula One races and impending arrival of the integrated resorts.
For many, it remains unclear if the integrated resorts will attract spenders or instead dilute existing earning streams by introducing new brands and products into a flagging market.
However, some still have faith in the long-term potential of the Asian market.
Nash Benjamin, CEO, FJ Benjamin, said: "When you look at the Asian economies, they are still very resilient and dynamic. The situation we have will pass. It is a question of time and how one manages their business.
"So, I'm confident going forward. These 12 to 18 months will be challenging, but in the future, retailing and tourism sectors will be good for Singapore."
- CNA/vm
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