Potential slowdown: Visitors view a model of a Boeing Business Jet 737-7 at forum and expo at Changi Exhibition Centre in Singapore. The aerospace segment increased by 18.3%, bolstered by higher production of aircraft parts and more maintenance. — Reuters
SINGAPORE: Factory production in Singapore fell in February, breaking a seven-month rising streak, after the biomedical and electronics clusters contracted year-on-year (y-o-y).
Total output decreased by 1.3% y-o-y, after a revised 8% increase in January and a 5.9% rise last December.
This was lower than the forecast growth of 7%, according to economists polled by Bloomberg.
Excluding the more volatile biomedical industry, output increased by 0.3%, according to data from the Economic Development Board.
On a seasonally adjusted month-on-month basis, total manufacturing output decreased by 7.5%. Excluding biomedical manufacturing, output decreased by 7.9%.
Precision engineering output grew the most, rising by 16.2% in February y-o-y. Both of its segments registered output growth.
The precision modules and components segment expanded by 20.2%, led by higher output of plastic and metal precision components, dies, moulds, tools, jigs and fixtures and optical instruments.
The machinery and systems segment increased by 14.5%, on account of higher production of semiconductor equipment and measuring devices.
On a year-to-date basis, output of the precision engineering cluster increased by 0.8% over the same period a year ago.
Transport engineering output grew by 16% y-o-y in February. Within the cluster, the aerospace segment increased by 18.3%, bolstered by higher production of aircraft parts and more maintenance, repair and overhaul jobs from commercial airlines.
The marine and offshore engineering segment in the same cluster expanded by 17%, on account of higher levels of activities in the shipyards. But the land segment declined by 2.6%.
Overall, the transport engineering cluster increased by 10.4% in the first two months of 2025 compared with the same period in 2024.
The chemicals cluster output decreased by 0.1% in February year on year.
The other chemicals and petroleum segments grew by 4.6% and 1.4%, respectively, with the former supported by higher output of fragrances used in consumer products.
Experiencing a decline were the petrochemicals segment (down by 3.3%) and the specialities segments (down by 6.5%), with the latter recording lower production of chemical additives for industrial uses as well as biofuels.
Overall, output for the chemicals cluster declined by 1.1% in the first two months of 2025 over the same period in 2024.
Biomedical manufacturing output contracted by 14.3% y-o-y in February. The medical technology segment expanded by 12.4% with sustained export demand for medical devices.
Conversely, the pharmaceuticals segment declined by 30% due to a different mix of active pharmaceutical ingredients being produced and lower production of biological products compared with a year ago.
Cumulatively, output of the biomedical manufacturing cluster grew by 1.9% in the first two months of 2025, compared with the same period a year ago.
Singapore’s export-oriented factories face rising downside risks from a more uncertain external landscape amid US-led tariff threats that might result in a global tit-for-tat trade war, said DBS Bank economist Chua Han Teng.
“Even as Singapore faces limited direct risks from US tariffs such as the reciprocal tariffs that are set to be announced in early April, its small and open economy remains highly indirectly vulnerable to a potential global economic slowdown induced by rising global protectionism,” he said. — The Straits Times/ANN
