German firms here upbeat but say technical education needs improvement

German companies are upbeat in their business outlook here, with many looking to increase investments and hire more workers, a recent survey has found.

However, some find the standard of technical education in Singapore could be better.

The findings were from the Singapore-Asean Business Climate Survey this year, carried out by the Singaporean-German Chamber of Industry and Commerce (SGC) and Association of German Chambers of Industry and Commerce.

This annual survey involved 68 member companies, out of around 3,500 member companies in Asean. German companies provide some 45,000 jobs here.

SGC president Claus Trenner said: "German companies want to continue to hire in Singapore… but in line with government expectations or in line with other companies in Singapore, they need more qualified workers for the future workforce."

This is because many German companies come from technical industries or those intensive in research and development, he added.

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The survey, which checks on the economic climate worldwide, found that 69 per cent of respondents from Singapore rated their current business situation as good, up from 52 per cent last year.

They also expressed confidence in the Asean region, citing stable economies and positive growth.

German companies are expected to generate more jobs here as well, with about half of the respondents saying they plan to increase their headcount in the next 12 months. Only 6 per cent expect to shrink the size of their workforce.

But the top three pain points of doing business here are a lack of market demand due to Singapore's size, lack of qualified labour and labour costs.

About half the companies surveyed rated the standard of education as "high" at universities and polytechnics. But close to 40 per cent felt it was "moderate" on both counts, and around 15 per cent said the standard was "low" in both types of institutions.