Search ForexCrunch

Economist at UOB. Group Barnabas Gan assesses the latest results from the manufacturing sector in Singapore.

Key Quotes

“Singapore’s industrial production expanded 2.1% y/y (+1.0% m/m sa) in April 2021, in line with our call for a 2.3% y/y growth (+2.3% m/m sa). Excluding biomedical manufacturing, industrial production rose 11.1% y/y in the same month. Accounting for April’s performance, Singapore’s industrial production grew 8.4% in the first four months of 2021.”

“Similar to the momentum seen since the start of the year, the surge in global demand for semiconductor chips supported Singapore’s electronic and precision engineering clusters.”

“The output of chemicals accelerated further to clock 14.4% y/y growth in April 2021 (up from +9.5% y/y in March), marking its fastest pace of growth since November 2015.”

“On the back of global growth and a positive external environment, we expect Singapore’s electronic and precision engineering clusters to support the overall manufacturing sector.”

“All-in-all, we keep our industrial production growth outlook of 5.5% in 2021. The risk to our outlook appears to be balanced; upside risks to our outlook will include a quickerthan-expected rollout of the COVID-19 vaccine, resulting in an accelerated recovery back to pre-COVID-19 levels. On the other hand, uncertainties surrounding COVID-19 given the introduction of new virulent variants in other parts of the world may inject downside risks to our outlook.”