S'pore factory output grows 1.1% in January but key electronics sector falls

Source: The Straits Times
Author: Colin Tan

SINGAPORE - Singapore's manufacturing output rose by 1.1 per cent year on year in January, undershooting analysts' expectations for a 3.7 per cent expansion, as the key electronics sector retreated.

Excluding biomedical manufacturing, manufacturing output expanded by 5.4 per cent and, separately, December's overall 2.5 per cent contraction was revised marginally lower to 2.4 per cent, according to statistics released by the Economic Development Board on Feb 26.

Among the electronics segments, only the infocommunications and consumer electronics segment registered an expansion, posting a 23.8 per cent jump, but it was not enough to overturn the overall 3.4 per cent decline in the sector.

The semiconductors segment, which accounts for the bulk of Singapore's electronics output, slid 3.4 per cent; computer peripherals and data storage fell 20.1 per cent; and other electronic modules and components saw a 9.5 per cent decline.

Overall, the electronics sector accounts for 45 per cent of Singapore's total manufacturing production.

Also dragging the manufacturing sector lower was the biomedical sector, as it dropped by 25.9 per cent on a year-on-year basis, largely on the back of a 43.7 per cent fall in pharmaceuticals amid a change in the mix of active pharmaceutical ingredients being produced from a year ago.

Bright spots in the data included transport engineering, which grew by 43.5 per cent, boosted by a 69.1 per cent spike in the aerospace segment, although this was due largely to a low base a year ago resulting from component shortages.

The marine and offshore engineering segment grew 27.6 per cent, supported by higher shipyard activity, as well as more oil and gas equipment produced.

Also providing a boost was the precision engineering sector, as output expanded by 27.7 per cent. This was largely due to the machinery and systems segment, which surged by 33.3 per cent, aided by the higher output of front-end semiconductor equipment and process control equipment.