Singapore's April Manufacturing Output Surges 17.6% on AI Electronics Demand

Singapore's manufacturing output rose 17.6% year-over-year in April, driven by robust AI-related electronics demand, according to data released Tuesday by the Economic Development Board.

Excluding biomedical manufacturing, factory output increased 21.5%.

On a seasonally adjusted basis, manufacturing output rose 5.8% from March. Output excluding biomedical manufacturing also increased 5.8%.

The data comes after Singapore maintained its 2026 gross domestic product growth forecast at 2.0% to 4.0%, although the Ministry of Trade and Industry (MTI) warned that downside risks have risen significantly due to the US-Israel-Iran conflict.

Singapore's economy grew 6.0% year over year in the first quarter, extending the 5.7% expansion recorded in the previous quarter.

"On a year-on-year basis, GDP growth in the first quarter was driven by strong performance of the wholesale trade, manufacturing, and finance & insurance sectors," MTI said.

The ministry said robust AI-related demand supported growth in the machinery, equipment, and supplies segment, as well as the electronics and precision engineering clusters, while banking, fund management, and securities dealing activities also remained resilient.

The electronics cluster surged 44% in April, led by the infocomms, consumer electronics, and semiconductors segments amid strong AI-related demand.

General manufacturing output increased 16.9%, supported by higher production of structural metal products and beverages.

Meanwhile, transport engineering expanded 10.1%, driven by stronger aerospace activity and sustained maintenance, repair, and overhaul work from commercial airlines, alongside increased ship repair and offshore engineering activity.

Chemicals output declined 17.6% due to disruptions in feedstock supply that weighed on petroleum and petrochemicals production.

The Ministry of Trade and Industry said Singapore's economic outlook has weakened since February amid heightened global uncertainty, though resilient AI-related demand should continue supporting the electronics and precision engineering sectors.

The ministry added that downside risks to the outlook have risen significantly and said it would continue monitoring developments closely and adjust the forecast if necessary.

Mineral Resources Ties Up With Ganfeng Lithium to Expand Mt. Marion for AU$490 Million

Australian miner Mineral Resources (ASX:MIN), in partnership with China's Ganfeng Lithium (SHE:002460, HKG:1772), will invest AU$490 million to expand its Mt. Marion lithium operation, according to a Tuesday press release.The expansion will include the construction of a flotation plant, the development of an underground mine, and the addition of non-processing infrastructure.The project is expected to boost annual spodumene concentrate output to 600,000 tons per year from 500,000 tons. It will also phase out the lower-grade SC3.5 product, which contains only 3.5% lithium oxide, in favor of producing a single, higher-grade SC5 product containing 5% lithium oxide."This high-return brownfield investment sets up Mt Marion for decades to come. Underground mining and flotation will work together to access deeper high-grade ore, lift recoveries and produce a single 5% product," said MinRes General Director Chris Ellison.Construction is scheduled to begin in the first quarter of 2027 and run through 2028.The announcement comes as analysts expect lithium prices to rise this year, driven by growing demand for electric vehicles and battery storage.UBS analysts noted that lithium prices are anticipated to climb to $3,875 per ton this year, with the market forecast to remain tight until 2030, according to a Nikkei Asia report.The joint venture is also expected to further consolidate China's influence over the global lithium supply.A Monday report by Wood Mackenzie found that Chinese companies are on track to own 39% of the world's extracted lithium by 2030, up from roughly one-third in 2020. The report noted that while Australia accounted for 43% of global lithium extraction in 2020, its share is projected to drop to 25% by 2030."Lithium production and lithium ownership are increasingly diverging, and it is reshaping the global critical mineral supply chains," said Allan Pedersen, Wood Mackenzie's research director for energy transition and battery materials-lithium."While production growth is becoming more geographically diverse, ownership remains concentrated among a relatively small group of companies, mostly led by China."

$ASX:MIN$HKG:1772$SHE:002460

Delivery Hero Shares Jump After Uber Takeover Approach

Delivery Hero (DHER.F, DHER.VI) shares climbed over 10% on Monday afternoon on Xetra after it confirmed an indicative takeover proposal from Uber Technologies (UT8.F).The German online food delivery company on May 23 said it received a proposal of 33 euros per share from the US-based ride-hailing company, without providing additional details on the bid. However, it noted that it "remains fully focused on executing its strategic review."The approach came after Uber raised its stake in Delivery Hero to 19.5%, with an additional 5.6% in options, according to the German company's May 18 disclosure. At the time, Delivery Hero welcomed the additional investment as "a further endorsement of its platform and Everyday App strategy."On Sunday, London's Financial Times reported that Uber's board convened May 23 to discuss further raising its bid after one of Delivery Hero's largest shareholders rejected a proposal worth 38 euros per share, which would have valued the target at more than 11.5 billion euros. Uber is also looking into raising its indirect ownership of Delivery Hero to over 30% through the purchase of derivatives, according to sources.Several shareholders of Delivery Hero told the newspaper that they were eyeing a price over 40 euros per share, or a valuation of 13 billion euros for the company. Such a price tag would represent a 19% premium on Delivery Hero's closing price on May 22.Another food delivery company, DoorDash, also made contact with Delivery Hero shareholders but did not purchase any shares, the FT reported.Uber shares fell 1% on Xetra in the afternoon.

$DHER.F$DHER.VI$UT8.F

Thailand's Trade Deficit Rises to Record High in April

Thailand struck a record high trade deficit in April as imports surged 45% year over year in dollar terms during the month, according to data from the Ministry of Commerce.The Southeast Asian kingdom recognized a deficit of $10 billion in April, up from $3.04 billion in the year-ago period.The figure topped a median estimate of a $5.3 billion deficit during the month, Bloomberg reported separately the same day.Thailand's trade deficit is the widest on record since January 1991's $1.25 billion figure, the news outlet said.Imports soared to $41.6 billion in April, with electrical circuit boards, electrical machinery and components, jewelry, crude oil, and machinery comprising the top five, in that order, the ministry said.Exports fell 10% year over year to $31.6 billion, led by computer equipment and parts, jewelry, automobiles, telecommunications equipment, and rubber products, in that order.In local currency terms, exports jumped 19% year over year to 1.022 trillion baht, while imports surged 40% to 1.363 trillion baht.The figure led to a trade deficit of 340.7 billion baht, 201% higher than the 113.3 billion baht deficit recorded a year earlier.January-April cumulative exports jumped 10% to 4.003 billion baht, while imports grew 26% to 4.680 trillion baht, equivalent to a trade deficit of 677.2 billion baht.Thailand's strong imports and widening trade deficit could continue should energy prices stay high, and artificial intelligence helps boost trade flows, Bloomberg said, citing Trade Policy and Strategy Office director-general Nantapong Chiralerspong.

$^SET

Related Articles

Mineral Resources Ties Up With Ganfeng Lithium to Expand Mt. Marion for AU$490 Million

Delivery Hero Shares Jump After Uber Takeover Approach

Thailand's Trade Deficit Rises to Record High in April