Business confidence fell in March but remains at its highest level in 11 years.
The National Bank's latest monthly confidence survey has found firms remain cautiously upbeat about a recovery in economic activity.
Twelve out of 13 indicators in the survey deteriorated in March, but optimists again outweighed pessimists, with a net 42.5% of those surveyed expecting a pick-up in the economy. This compares with a net 50% a month earlier.
A net 39% expected better times for their own business, compared to 42% last month. Employment intentions were stable, with a net 9% saying they will take on staff.
Investment was the only indicator to increase during the month.
The bank's senior economist, Khoon Goh, says the survey indicates the economy continues to recover, though he warns that firms remain cautious about future profits, employing extra people and investing more.
He says the level of confidence indicates annual growth of 4%.
Inflation expectations edged up slightly to 2.6% over the coming year.
