singapore-manufacturing-singapore-economy-526177-1

Singapore's manufacturing output up 12.6% in February

SINGAPORE: Singapore’s manufacturing output in February rose 12.6 per cent from a year ago, on the back of strong growth in the electronics and precision engineering clusters.

Excluding the more volatile biomedical manufacturing cluster, output grew 17.1 per cent, according to data released on Friday (Mar 24) by the Singapore Economic Development Board (EDB).

On a month-on-month seasonally-adjusted basis, industrial production fell 3.7 per cent in February, it added. 

Output of the electronics cluster jumped 39.8 per cent on-year last month, mainly due to robust growth of 63.6 per cent in the semiconductors segment. The other electronic modules and components and infocomms and consumer electronics segments also grew 16.5 per cent and 8.3 per cent respectively. 

The output of the precision engineering cluster also expanded 26.2 per cent over the same period, with the machinery and systems segment posting strong growth of 33.2 per cent on the back of higher export demand for semiconductor-related equipment. The precision modules and components segment also grew 16.4 per cent with higher output of dies, moulds, tools, jigs and fixture, optical instruments and metal precision components. 

There were also increases in output in the general manufacturing industries cluster (3.3 per cent) and chemicals cluster (1.9 per cent), but declines in the biomedical manufacturing cluster (-2.6 per cent) and transport engineering cluster (-9.6 per cent). 

Let’s block ads! (Why?)

Channel NewsAsia Singapore Business News

manufacturing-aircraft-component

Singapore's manufacturing output up 2.2% in January

SINGAPORE: Singapore’s manufacturing output in January rose 2.2 per cent from a year ago, on the back of strong growth in the precision engineering and electronics clusters.

Excluding the more volatile biomedical manufacturing, output grew 7 per cent, according to data released on Friday (Feb 24) by the Singapore Economic Development Board (EDB).

On a month-on-month seasonally-adjusted basis, industrial production fell 6 per cent in January, it added. 

Output of the precision engineering sector grew 24 per cent on-year last month, with the machinery and systems segment posting 40.3 per cent growth mainly due to higher export demand for semiconductor-related equipment, EDB said. 

The output of the electronics sector also climbed 14.8 per cent over the same period, with the semiconductors and computer peripherals segments growing 25.8 per cent and 3.7 per cent respectively. However, the other segments registered declines, the agency said.

The chemicals cluster’s output grew 3.5 per cent year-on-year last month, and the growth was led by the petroleum (20.7 per cent) and petrochemicals (17.4 per cent) segments due in part to the low base last year when there were some plant maintenance shutdowns. 

Additionally, declines were seen in the transport engineering (3.8 per cent), biomedical (13.5 per cent) and general manufacturing industries (13.8 per cent) clusters, EDB figures showed. 

Let’s block ads! (Why?)

Channel NewsAsia Singapore Business News

sg-food-industry-513451

Singapore's December manufacturing output jumps 21.3% from previous year

SINGAPORE: Singapore’s manufacturing output in December surged 21.3 per cent from a year ago, on the back of strong growth in electronics and pharmaceuticals output.

Excluding the more volatile biomedical manufacturing, output grew 16.1 per cent, according to data released on Thursday (Jan 26) by the Singapore Economic Development Board (EDB). 

On a month-on-month seasonally-adjusted basis, industrial production rose 6.4 per cent in December 2016 compared to the previous month.

Overall, manufacturing output rose 3.6 per cent in 2016 over 2015.

STRONG ELECTRONICS, BIOMEDICAL PHARMACEUTICALS OUTPUT

Output from the key electronics cluster increased 49.4 per cent in December from a year ago. This was largely supported by the semiconductors segment, which saw output rise by 94 per cent. For the whole of 2016, output of the electronics cluster expanded 15.9 per cent compared to 2015. 

The biomedical manufacturing cluster, meanwhile, expanded 44.9 per cent year-on-year in December, said EDB. The growth was mainly due to the pharmaceuticals and medical technology segments, which expanded 53.8 per cent and 19 per cent respectively. The whole cluster grew 13.6 per cent in 2016 compared to the year before.

The precision engineering cluster saw an increase of 6.1 per cent in December compared to the same month last year. The machinery and systems segment grew 8.5 per cent with higher export demand for semiconductor related equipment, while the precision modules and components segment recorded higher output of industrial rubber, dies, moulds, tools, jigs and fixtures and metal precision components, added EDB.

In the chemicals cluster, output rose 4.1 per cent on a year-on-year basis in December 2016. This was supported by higher output in the petrochemicals (18.4 per cent), petroleum (16.7 per cent) and specialties (4.1 per cent) segments. For the whole of 2016, output in the cluster fell 0.9 per cent compared to 2015.

In 2016, the general manufacturing industries’ output declined 2.5 per cent from a year ago, although it grew 2 per cent year-on-year in December 2016. EDB said this was mainly attributed to the 22.8 per cent growth in the food, beverages & tobacco segment. However, growth in the cluster was moderated by declines in the miscellaneous industries (-10.6 per cent) and printing (-14.6 per cent) segments. 

Data showed that transport engineering remained a drag. Production in the marine and offshore engineering segment declined 26.1 per cent year-on-year in December, with lower output in oilfield and gasfield equipment as well as ship building and repair jobs. However, the aerospace and land transport segments grew 15 per cent and 11.5 per cent respectively.

Let’s block ads! (Why?)

Channel NewsAsia Singapore Business News

nov-2016-manufacturing-output-data

Singapore's manufacturing output up 11.9% in November

SINGAPORE: Industrial production in Singapore in November expanded at its fastest annual pace since March 2014, buoyed by strong electronics and pharmaceuticals output, data showed on Friday (Dec 23).

Manufacturing output in November jumped 11.9 per cent from a year earlier, data from the Singapore Economic Development Board (EDB) showed. The median forecast in a Reuters survey predicted a 1.6 per cent expansion.

Excluding biomedical manufacturing, output grew 6.4 per cent. 

On a month-on-month and seasonally-adjusted basis, industrial production rose 6.1 per cent in November, its strongest since January this year. The median forecast was for a contraction of 2.0 per cent. Excluding biomedical manufacturing, output grew 5.1 per cent month-on-month.

STRONG ELECTRONICS AND PHARMACEUTICALS OUTPUT

Output of the biomedical manufacturing cluster grew 34.8 per cent in November, compared to the same month last year, while the pharmaceuticals segment expanded 36.1 per cent. The growth was mainly due to a different mix of active pharmaceutical ingredients and biological products produced, said EDB. The medical technology segment also posted a growth of 30.8 per cent, with high export demand for medical instruments, it added. 

Meanwhile, the electronics cluster’s output increased 24.2 per cent in November on a year-on-year basis. According to EDB, growth in the cluster was largely attributed to the semiconductors segment, which grew 49.6 per cent.

Output of the precision engineering cluster grew 7.6 per cent, compared to a year ago. The machinery and systems segment grew 10 per cent as export demand for semiconductor-related equipment increased, while the precision modules and components segment recorded higher output of industrial rubber and dies, moulds, tools, jigs and fixtures. 

The chemicals cluster’s output rose 3.5 per cent, led by the petroleum segment which grew 22 per cent due to the low base effect last year as some plants shut down for maintenance, EDB said.

General manufacturing industries’ output declined 0.9 per cent year-on-year, mainly attributed to the miscellaneous industries and printing segments which contracted 4.5 per cent and 16.2 per cent respectively.  

The transport engineer cluster’s output shrank the most, contracting 14.8 per cent compared to the same month last year. The land transport segment grew 12.2 per cent, but this was offset by declines in the aerospace and marine and offshore engineering segments. Meanwhile, the marine and offshore engineering segment remained weak as the low oil price environment continued to affect rig building activities and demand for oilfield and gasfield equipment. 

Let’s block ads! (Why?)

Channel NewsAsia Singapore Business News

manufacturing-workers-1

Singapore's manufacturing output falls 3.6% in July, first contraction in 5 months

SINGAPORE: Singapore’s manufacturing output slumped 3.6 per cent in July from a year ago, contracting for the first time in five months, underlining concerns surrounding the country’s economic outlook.

July’s reading also marked the biggest slump since Dec 2015, when factory output shrunk 11.9 per cent on a year-on-year basis, according to figures released by the Economic Development Board (EDB) on Friday (Aug 26). Economists polled by Reuters had expected a rise of 0.9 per cent on-year.

On a month-on-month and seasonally adjusted basis, factory output plunged 4.0 per cent in July, significantly higher than a forecast of minus 1.1 per cent.

The weaker-than-expected number “reinforced our negative view on the Singapore economy”, said Credit Suisse economist Michael Wan. He added that Friday’s economic data implied a weak gross domestic product (GDP) figure for the third quarter at around 1 per cent year-on-year, a moderation from economic growth of 2.1 per cent in the second quarter.

For Citi economist Kit Wei Zheng, “the risks of growth undershooting the already downshifted official expectations may have increased”. Earlier this month, the Ministry of Trade and Industry (MTI) had narrowed the growth forecast for Singapore’s economy in 2016 to between 1 and 2 per cent, down from the initial range of between 1 and 3 per cent.

Such anaemic growth would mean that the Monetary Authority of Singapore (MAS) could ease monetary policy in October, by re-centering its exchange rate policy band lower, said Mr Wan.

Earlier this year, the central bank unexpectedly eased monetary policy in a move to stoke growth momentum, but had reiterated in July that there was no need to change its current monetary policy stance unless there was a marked deterioration in the global economy, or a significant shift in the inflation outlook. 

SECTOR BREAKDOWN

Excluding biomedical manufacturing, factory output fell 2 per cent year-on-year in July. Output from the biomedical manufacturing cluster had contracted 9.7 per cent compared to a year ago, with a 6.3 per cent rise in the medical technological segment unable to make up for the 14.1 percent fall in the pharmaceuticals segment.

Among the worst performers, the transport engineering sector’s output shrank 21.8 per cent, as the marine and offshore engineering segment contracted 33.4 per cent on the back of weak rig-building activities and demand for oilfield and gasfield equipment amid low oil prices.

The chemicals cluster’s output fell 3.2 per cent on a year-on-year basis, while the precision engineering cluster decreased 4.9 per cent in July. Output from the general manufacturing industries cluster fell 10.2 per cent compared to the year-ago period.

Lower level of rig building activity continued to weigh on transport engineering, while precision engineering remained downbeat due to fewer machinery orders, analysts said.

Bucking the downtrend, output from the electronics sector rose 16.2 per cent on-year, boosted by a 34 per cent surge in the semiconductor segment though this was partially offset by declines in the rest of the electronics segment.

However, Credit Suisse’s Mr Wan noted that even the strength in the electronics sector is showing some signs of moderation from the previous month’s 19 per cent gain.

As such, analysts largely tip a gloomy outlook for the all-important manufacturing sector, which has been a huge drag on Singapore’s economic growth.

Given ongoing tepid external demand conditions, OCBC Bank’s Head of Treasury Research & Strategy Selena Ling expects third-quarter domestic manufacturing growth to see a contraction of 1.7 per cent on-year, a reversal from the 1.1 per cent growth in the April to June quarter.

Data from last week also revealed a deepening export slump, with non-oil domestic exports (NODX) plunging 10.6 per cent on-year last month, widening from a 2.4 per cent drop in June.

Let’s block ads! (Why?)

Channel NewsAsia Singapore Business News