Singapore’s industrial production defies predictions with almost 10% growth

SINGAPORE: Singapore’s industrial production sustained a 9.8% year-on-year increase in September, defying predictions of a 7.2% decline, according to a report from UOB. The continued growth reflects a surprisingly robust performance in manufacturing, led by a sharp surge in pharmaceutical production.

Pharmaceutical output soared by 143.9% in September, rebounding from a 14.1% drop in August. This rise was attributed to a favorable mix of pharmaceutical ingredients and heightened production of biological products, not merely a low comparison base from previous months.

However, excluding the biomedical sector, industrial production in September experienced a 7.6% decline, contrasting with the 11.5% growth recorded in August, resulting in a moderate 4.5% year-on-year increase, a slowdown from August’s 28.4%.

In other sectors, electronics output grew by 1.9% in September, down significantly from the 50% surge seen in August, as the earlier high demand for semiconductors softened. Precision engineering showed positive momentum, especially in machinery production, but the transport engineering sector faced declines, primarily due to slower activity in aerospace and marine industries.

Overall, Singapore’s manufacturing sector recorded a strong 11% growth in Q3, buoyed by the strength in pharmaceuticals and recovery in electronics. This robust quarterly performance is expected to lift GDP figures, surpassing earlier growth estimates.

Looking forward, potential rate cuts in overseas markets could further stimulate economic growth, though analysts caution that a regional slowdown in electronics exports may affect Singapore’s electronics sector performance in 2025.