Singapore’s manufacturing output rebounds after year-long slump

Singapore's electronics production rose 14.8% year on year, with the semiconductor segment expanding 17.8% (Photo: VNA)

Singapore (VNA) – Singapore’s manufacturing output in October surpassed market expectations with a 7.4% year-on-year rebound after a year-long slump, thanks to growth in the key electronics industry, particularly semiconductors, the country's Economic Development Board (EDB) has reported.

Notably, the turnaround was led by the electronics industry, which accounts for about 45% of local manufacturing production.

Electronics recorded a 14.8 % year-on-year jump, with the semiconductor segment expanding 17.8%. This was the second straight month of expansion for both electronics and chip production.

The transport engineering industry also helped lift the overall manufacturing sector, with output rising 12 %. Much of this was due to a surge in marine and aerospace on the back of higher demand for aircraft parts and additional maintenance, repair and overhaul jobs from commercial airlines, which, in turn, benefited from strong air travel demand globally.

However, Maybank economist Brian Lee noted that the numbers may be flattered by the low base of comparison, particularly for exports and manufacturing.

Nevertheless, he expected fourth-quarter economic growth to exceed 2% year on year, adding the latest data confirms that the economy is on track for a stronger recovery heading to the new year, led by outward-facing sectors.

According to the EDB, the worst of the slump is behind the country but the global economic backdrop is still uncertain; high interest rates in advanced economies, bumpy conditions in China and lingering geopolitical tensions can yet disrupt supply chains. These can keep Singapore’s manufacturing recovery fragile./.