ANN/THE STRAITS TIMES – Singapore’s manufacturing sector marked its third consecutive month of growth in September, with total output expanding by 9.8 per cent year-on-year.
This growth rate, however, reflects a deceleration from the revised 22 per cent surge in August, as reported by the Economic Development Board (EDB) yesterday.
Excluding the often-fluctuating biomedical sector, manufacturing output saw a 4.5-per cent rise. On a seasonally adjusted month-on-month basis, output remained nearly steady, with a slight 7.6-per cent drop when excluding biomedical manufacturing.
Associate economist at UOB Jester Koh described September’s performance as “remarkably resilient”, suggesting it may prompt an upward adjustment in Singapore’s third-quarter gross domestic product (GDP).
Analysts Chua Hak Bin and Brian Lee from Maybank shared a cautiously optimistic outlook for the electronics sector, despite the month’s slower growth. They emphasised that a full electronics recovery appears possible but warned of potential risks to the broader manufacturing and export sectors. Factors such as rising tariffs, a possible escalation of trade tensions, intensifying geopolitical conflicts in the Middle East, and a potential economic slowdown in the United States could impact Singapore’s recovery, especially if geopolitical pressures mount in the coming months.
DBS economist Chua Han Teng added that an escalation of ongoing geopolitical conflicts and protectionist measures could potentially dampen the pace of Singapore’s manufacturing and trade growth.
These measures could disrupt global supply chains and result in a more fragmented trade landscape, he said.
EDB’s September data showed all industries saw higher output, except for transport engineering.
Electronics production, which accounts for nearly half of Singapore’s manufacturing output, grew 1.9 per cent in September, down from a hefty 50 per cent in August.
