Singapore Manufacturing Sector Continues To Show Signs Of Growth
Singapore’s manufacturing sector continues to drive economy growth this year as output from its biomedical, aerospace and marine engineering clusters grew in June.
According to data released by the Singapore Economic Development Board (EDP), the total manufacturing output in June grew by 7.6 percent year-on-year. This was an unexpected turn of events, considering that demand for the biomedical and electronics clusters of the said field has experienced slowdowns in recent months.
Singapore’s manufacturing sector continues to buoy economic growth despite a decreased demand for electronic parts exports to the United States and Europe.
The biomedical sector has produced 54 percent more pharmaceuticals and biotech products, reversing its weak performance during the past month.
Without the growth in the bio-medical cluster, however, the total manufacturing income would fall by 1.5 percent.
The EDB reported that electronics output has continued to decline, although noticeably slower by 4.5 percent in June.
This has been caused by a deep plunge from the computer parts production and demand by a whopping 18.1 percent during the said period. As a whole, the electronics cluster output has decreased by 13.4 percent during the H1 of 2012, year-on-year.
The precision engineering and chemicals cluster of the manufacturing center also experienced a drop in output last month.
On the other hand, aerospace corporations, oil rigs and marine builders have helped buoyed the manufacturing sector output by 7.6 percent.
The sector has actually grown by 3.9 percent on a month-on-month basis but would fall by 3.8 percent if the biomedical cluster would be taken out of the equation.
The total manufacturing output for the month of June has actually surprised experts as market growth were projected at around 3.2 percent year-on-year.
The Singapore manufacturing industry makes up a third of the country’s GDP growth. The country continues to be a top destination for foreign investors for its high-value manufacturing and R&D facilities.