Singapore's manufacturing output grows 27.5% on year in June

The growth figure, released by EDB on July 26, 2021, comes just above the 27.2 per cent median estimate in a Bloomberg poll. - The Straits Times/ANN

SINGAPORE, July 26 (Xinhua): The Singapore Economic Development Board (EDB) announced on Monday that the country's manufacturing output grew 27.5 per cent year on year in June, compared to the revised 27 percent increase in the previous month.

In the first half of 2021, Singapore's manufacturing output grew 14.5 per cent year on year.

Excluding biomedical manufacturing, the output grew 24.8 per cent year on year this June, compared to the 25.4 per cent growth in May.

In the first six months, the output grew 17.4 percent year on year.

As for the performance of different clusters, the electronics cluster's output expanded 26.2 per cent year on year in June and 23.6 per cent in the first half of this year, while the biomedical manufacturing cluster saw its output grow 42.5 per cent in June and 5 percent in the first six months.

The chemicals cluster's output grew 30.6 per cent in the month and 13.3 percent in January-June 2021, the precision engineering cluster's output grew 22.2 per cent in June and 19.3 percent in January-June 2021.

The transport engineering cluster's output increased 28.3 per cent in June but decreased 0.9 per cent in the first half of 2021, and the general manufacturing cluster's output rose 17.4 per cent in June and 7.5 per cent in January-June period.

Meanwhile, The Straits Times reported that UOB economist Barnabas Gan said besides the growth in electronics and precision engineering as a result of resilient global demand for semiconductor-related products, economic recovery in Singapore’s key trading partners, amid a global rebound, should also support the chemicals cluster for the year ahead.

But downside risks remain, he cautioned, noting that a prolonged slack in production in some of Singapore’s major trading partners, which are still facing high Covid-19 infections, could dampen trade demand and limit export and manufacturing growth in the coming months.

OCBC Bank's head of treasury research and strategy Selena Ling said given the low base effects last year amid strict Covid-19 measures, manufacturing growth momentum should be sustained in the near term.

“Moreover, there appears to be more light at the end of the tunnel, with the multi-ministry task force indicating that they would review existing measures and the Covid-19 situation in early August," she added.

When businesses can largely return to normal operations without having to shut down premises for deep cleaning, that "could bode well for business sentiments going ahead, especially if border restrictions are relaxed", she said.