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Singapore Manufacturing Output Growth Slows in May Despite AI-Led Growth

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Singapore Manufacturing Output Growth Slows in May Despite AI-Led Growth

Singapore's manufacturing output growth slowed in May as an AI-driven surge in electronics was offset by steep declines in biomedical manufacturing and chemicals, according to data released by the Singapore Economic Development Board (EDB) on Friday.

Output jumped 13% year over year in May, slower than the revised 16.5% growth seen in April and below the Trading Economics consensus forecast of a 17% rise.

Excluding biomedical manufacturing, output grew 17.7%, still slower than the 20.2% seen a month earlier.

The electronics sector jumped 35.8% in May on the heels of artificial intelligence demand that also led increases in infocomms and consumer electronics at 59.2% and semiconductors at 37%, the EDB said.

Precision engineering output expanded 32.2% as precision modules and components increased 8.6%.

The precision modules and components segment saw growth in optical instruments, electronic connectors and dies, molds, tools, jigs, and fixtures.

General manufacturing output inched up 1.8% on higher structural metal product manufacturing.

Transport engineering output slipped 5% on a decline in aerospace maintenance, repair, and overhauls, as well as reduced work in oil rigs and offshore platforms and softer demand for oil and gas field equipment.

The decline comes despite a 22.9% rise in land segment output.

The chemicals sector slipped 11.5% on lower petroleum and petrochemicals segments. Petrochemicals output plunged 42.5%.

Singapore's biomedical manufacturing segment fell 24.2% on softer medical device demand and lower pharmaceutical output at 41.6%.

On a month-on-month basis, manufacturing output contracted 0.7% compared with the Trading Economics consensus forecast of a 2% growth and lower than a growth of 6.2% in April.

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