ANN/ THE STRAITS TIME – Factory output in Singapore continued to slide in April, but the decline rate was significantly lower than the previous month, despite being worse than analysts’ forecasts.
Manufacturing production fell 1.6 per cent in April compared to the same month in 2023, a notable improvement from the 9.2 per cent drop recorded in March.
The sector has experienced a turbulent period, with 12 consecutive months of decline up to October 2023 and only four months of gains since then.
Excluding the biomedical cluster, output in April actually rose 1.7 per cent year on year, according to Economic Development Board data released on May 24.
The biomedical cluster saw the most significant decline, shrinking 29.1 per cent in April, primarily due to the pharmaceuticals segment, which plunged 54.6 per cent because of lower output for products and a different mix of active pharmaceutical ingredients.
The cluster’s decline came despite a 13.6 per cent increase in the medical technology segment on the back of higher export demand for devices.
The electronics cluster slid 1.1 per cent year on year. While parts of the cluster expanded, they were unable to offset the 2.6 per cent contraction in semiconductors, which account for the bulk of Singapore’s electronics output. On the flip side, all the remaining sectors expanded, led by transport engineering, which appeared to fire on all cylinders, with output climbing 10.6 per cent.
The marine and offshore engineering segment stood out in the transport engineering sector with production surging 18.8 per cent, supported by improved activity in the shipyards, as well as increased output in oil and gas field equipment.
Aerospace fared well too, with output up 8.2 per cent amid higher demand from commercial airlines as travel demand worldwide continued to recover strongly. Only the land segment contracted, down three per cent.
Output also expanded in general industries, which grew 7.3 per cent; chemicals, up 3.1 per cent and precision engineering, ahead 2.9 per cent.
Economists told The Straits Times that the weakness in semiconductor manufacturing was unexpected.Essec Business School’s Associate Professor Jamus Lim said, “Indeed, I am a little surprised by the downturn in electronics.
