Singapore's manufacturing sector shows positive business sentiment

Except for biomedical manufacturing cluster, all clusters are optimistic about their business ventures.

Business sentiments in Singapore's manufacturing sector are positive, buoyed by a rebound in global electronics demand, the Economic Development Board said.

Despite ongoing geopolitical and macroeconomic uncertainties, 25% of manufacturers anticipate an improvement in business conditions this year, whilst only 2% foresee a weaker outlook.

All clusters within the manufacturing sector, except the biomedical manufacturing cluster, are optimistic about their business prospects. 

The electronics cluster is particularly positive, with 40% of firms expecting improved conditions in the second half of the year.

This optimism is largely due to the semiconductors segment, which is anticipating higher demand for consumer electronics devices and increased orders for memory, storage, and networking chips fueled by strong growth in AI applications.

On the other hand, the biomedical manufacturing cluster is more cautious, expecting weaker business conditions in the latter half of the year due to uncertainties in global macroeconomics and soft demand from key markets.

Manufacturing output slips in June

Singapore's manufacturing production fell 3.9% year-on-year in June following May's 2.3% expansion, the Economic Development Board reported.

In June, biological manufacturing output decreased 23.2% year-on-year due to a 47.1% drop in the pharmaceuticals segment. Electronic production also declined 5.5% in June compared to last year.

Meanwhile, transport engineering output increased 10.3% in June buoyed by a 19.5% growth in the marine and offshore engineering segment.