SINGAPORE – May’s manufacturing output rose 13 per cent year on year on the back of increased electronics and precision engineering production.
This, however, fell short of the 17.6 per cent forecast by analysts in a Bloomberg poll, as production declined across the chemicals, transport engineering and biomedical manufacturing.
Excluding biomedical manufacturing, output rose 17.7 per cent, according to data released by the Economic Development Board on June 26.
Electronics output grew 35.8 per cent, driven by robust AI-related demand that lifted production in the infocomms and consumer electronics segment by 59.2 per cent and the semiconductor segment by 37 per cent.
Production of other electronic modules and components also grew 16.8 per cent. On the other hand, the computer peripherals and data storage segment contracted 5.6 per cent.
The precision engineering industry was the second-best performer at 32.2 per cent, as higher semiconductor equipment production drove growth in the machinery and systems segment from 16.6 per cent in April to 38.9 per cent in May.
The precision modules and components segment saw 8.6 per cent growth, with increased output of optical instruments, electronic connectors and dies, moulds, tools, jigs and fixtures.
General manufacturing industries grew 1.8 per cent, led by the miscellaneous industries segment, which expanded 5.6 per cent on higher production of structural metal products.
Meanwhile, the food, beverages and tobacco segment grew marginally by 0.7 per cent, while production in the printing industries declined by 10.1 per cent.
Biomedical manufacturing saw the greatest contraction at 24.2 per cent. Medical technology output fell 18.2 per cent amid softer demand for medical devices, while pharmaceutical production dropped 41.6 per cent as manufacturers produced fewer biologic products and a different mix of drug ingredients than a year earlier.
Transport engineering output declined 5 per cent as activity declined across aerospace maintenance, repair and overhaul; oil rigs and offshore platforms; and oil and gas field equipment.
This was offset by growth in the land transport engineering segment, which grew 22.9 per cent in May after contracting 8.9 per cent in April.
The chemicals cluster declined 11.5 per cent, led by a 42.5 per cent contraction in petrochemicals output as the blockade in the Strait of Hormuz disrupted feedstock supplies.
The petroleum segment remained in contraction, although the decline eased to 12.3 per cent from 29.7 per cent in April. However, production of chemicals other than petroleum, petrochemicals and specialities grew 17.1 per cent.
