Image Credits - Channel News Asia
Singapore’s manufacturing output saw a significant boost in August, with the electronics sector leading the charge to its best performance in six years. According to the latest figures from the Singapore Economic Development Board (EDB), factory output increased by 7.8% year-on-year, signalling a strong rebound in the manufacturing sector.
The electronics sector was the highlight, registering a 14.5% jump in output—the highest since 2018. This growth was driven by soaring global demand for semiconductors, consumer electronics, and data processing equipment, as industries worldwide ramp up investments in digital transformation and advanced technologies.
Semiconductor manufacturing played a crucial role in this expansion, with output surging by 18.2% compared to the same period last year. The demand for chips, essential in products ranging from smartphones to electric vehicles and emerging technologies like artificial intelligence and 5G, continues to drive this growth.
Other manufacturing sectors also contributed to the overall expansion. Precision engineering saw a 6.3% increase, supported by higher production of semiconductor-related equipment and optical products. The biomedical manufacturing sector posted a 3.2% rise, led by an uptick in pharmaceutical production.
This uptick in factory output is a positive sign for Singapore’s broader economy, which has been navigating through global uncertainties, including geopolitical tensions and supply chain disruptions. The EDB remains optimistic about maintaining this momentum into the final quarter of the year, buoyed by sustained global demand and strategic investments in high-growth sectors.
“While recent growth is encouraging, we are closely monitoring the global economic landscape, which could impact manufacturing output in the months ahead,” Lim told to local media.
The robust performance of Singapore’s manufacturing sector aligns with recent government initiatives aimed at enhancing the industry’s competitiveness.