Singapore’s electronics sector shrinks after two years of expansion

Illustrative image (Photo: https://www.businesstimes.com.sg/)

Singapore (VNA) – Singapore’s manufacturing sentiment fell in August to its lowest point in two years, with the Purchasing Managers’ Index (PMI) for the electronics sector recording the sharpest contraction after 24 consecutive months of expansion.

According to the Singapore Institute of Purchasing and Materials Management (SIPMM), Singapore's electronics sector PMI decreased by 0.9 points from July to 49.6 in August, making the country’s PMI edge down 0.1 points from the previous month to remain on expansion at 50.

The result was attributed to a contraction in the key indices of new orders, new exports, output and inventory, SIPMM said.

UOB senior economist Alvin Liew said Singapore's electronic sector PMI was displaying the same pattern of slowdown seen in the Republic of Korea and Taiwan (China), both electronics production powerhouses.

Meanwhile, chief economist at OCBC Bank Selena Ling said although manufacturing PMI recorded its 26th consecutive month of expansion, the signs are not encouraging and a challenging road is lying ahead.

Economists said a potentially much slower electronics performance and weaker demand from North Asian economies could increasingly weigh on non-oil domestic exports momentum and domestic manufacturing demand./.

VNA