SINGAPORE – Singapore’s manufacturing output grew at a slower pace in September, weighed down by a sharp contraction in pharmaceutical production, even as demand for artificial intelligence-related products continued to support the electronics and precision engineering sectors.
Factory output rose 3.4% year on year in September, easing from the 15.4% expansion recorded in August, according to data released by the Economic Development Board (EDB) on Oct 26.
The number was far below the 7.1% forecast by economists in a Bloomberg poll.
Biomedical manufacturing output plunged 32.8% in September. The decline was driven largely by the pharmaceuticals segment, where output contracted 65.9%.
The medical technology segment also recorded a 1.7% decline amid softer export demand.
The precision engineering cluster recorded the largest growth in September with output rising 31%, supported by the higher production of semiconductor equipment in the machinery and systems segment, which saw 34.8% growth.
The precision modules and components segment also recorded 12.4% growth with higher output of industrial rubber goods, precision metal products and dies, moulds, tools, jigs and fixtures.
Robust AI-related demand drove a 5.7% growth in the electronics cluster with most segments expanding, though September’s expansion was far lower than August’s 28.3%.
The infocomms and consumer electronics, and computer peripherals and data storage segments saw the largest expansions at 29% and 21.3% respectively, while semiconductors output slowed down to just 1.9% growth, compared to 25.9% in August.
The other electronic modules and components segment contracted by 4.2%.
The transport engineering cluster grew 10.6%, with the land segment recording the largest growth at 31.4%. The aerospace segment also grew 16.3%, supported by higher production of aircraft parts and sustained maintenance, repair and overhaul (MRO) jobs from commercial airlines.
This growth was partially offset by lower shipyard activity and lower production of oil and gas field equipment in the marine and offshore engineering segment, which contracted 6.3%.
The general manufacturing industries cluster grew 4%. The food, beverages and tobacco segment saw output rise 11% due to higher production of beverage and dairy products , while an increase in commercial printing drove the printing segment to expand by 7.6%. The miscellaneous segment contracted 8.4% however, as it recorded lower production of structural metal products and furniture.
Biomedical manufacturing saw the greatest contraction at 32.8%, led by the pharmaceuticals segment’s 65.9% due to a different mix of active pharmaceutical ingredients being produced, much worse than August’s 4% decline. The medical technology segment also fell 1.7% due to softer export demand, after seeing growth over the last three months.
The chemicals cluster declined 4.6%. The other chemicals segment contracted 19.4% due to lower output of fragrances and softer demand, while the petrochemicals segment saw a decline of 24.3%, as production remained constrained by softer demand and feedstock supply disruptions.
In contrast, the specialties and petroleum segments recorded output growth of 14.3% and 4.6% respectively, with the former producing more industrial gases, chemicals and mineral oil additives.
