Singapore’s manufacturing industry expands by 7.6% YOY
Despite a downturn in the global electronics market and the manufacturing sector forecasted to see a mere 4.2% growth in November, the factory output in November was found to exceed this number at 7.6% year on year. November’s factory output also surpassed October’s result of 5.5% growth.
Manufacturing sectors experience growth
One reason for the increase of factory output is due to the expansion of industry output. According to the Singapore Economic Development Board (EDB), industry output grew 5.3% year on year in November. One of the reasons for this is because of the biomedical industry, Singapore’s biggest growth driver for the manufacturing industry.
The biomedical industry saw growth of 18.5% year on year in November, which is 5.4% higher than October’s growth. Among all the categories under the biomedical cluster, pharmaceuticals saw the biggest growth at 23.9% year on year due to strong production of active pharmaceutical ingredients and biological products and medical technology.
Other than the biomedical industry, other industries in Singapore also experienced output growth. For instance, the electronics industry expanded by 11.2% in November after September and October saw declining growth. Several reasons for this includes strong expansion in semiconductors (16.5%), infocomms and consumer electronics (12.6%), and other component segment and electronic modules (3%).
Similarly, the chemicals industry finally saw a 3.4% growth in November after a slowing growth in September and October. The rise in fragrance production had resulted the other chemicals sector to grow by 18.7% while the increase in industrial gases and mineral oil additives output had caused a 6.6% growth in the specialties sector.
The transport engineering industry also expanded by 11.3% year on year, with the biggest growth recorded by the marine and offshore engineering sector at 26.6%.
Declining growth for precision engineering and general manufacturing sector
Despite overall growth for the industry, the precision engineering and general manufacturing sector saw declining growth. The precision engineering industry saw its output decline by 8.2%, whereas the general manufacturing sector declined by 0.8% year on year, mainly due to the printing sector.