Singapore’s manufacturing output plummets 9.2% in March

Singapore's manufacturing sector continued its downward trend with a 9.2% decline in output in March 2024 compared to the previous year, as reported by the Singapore Economic Development Board on Friday (26 Apri).

This decrease mirrors broader economic challenges, evidenced by a significant contraction in non-oil domestic exports (NODX) earlier in the month.

Sector-Specific Analysis

Chemicals: This cluster showed resilience with a 4.2% increase. Notably, the petrochemicals segment saw a significant rise of 17.0%, benefiting from a low production base last year due to maintenance shutdowns. The specialties and petroleum segments also recorded growths of 5.4% and 2.1%, respectively.

Precision Engineering: There was a 3.2% growth in this sector, driven by a 5.5% increase in the machinery and systems segment, which saw higher production of front-end semiconductor equipment. However, the precision modules & components segment experienced a 6.5% decline.

General Manufacturing: This sector faced a decline of 3.2%. While the food, beverages & tobacco segment grew by 4.5%, driven by increased production of milk powder and cocoa products, the printing and miscellaneous industries segments fell by 3.9% and 13.8%, respectively.

Transport Engineering: This cluster declined by 9.7% year-on-year, with the aerospace and marine & offshore engineering segments dropping by 7.8% and 15.3%, respectively.

Electronics: Facing a notable decline, the electronics cluster's output fell by 11.3%. Despite growth in the infocomms & consumer electronics and other electronics modules & components segments, steep declines in computer peripherals & data storage and semiconductors, by 4.5% and 14.4% respectively, pulled the overall numbers down.

The first quarter of 2024 has not been promising for Singapore’s manufacturing sectors, with many showing downturns or marginal growth. The biomedical manufacturing cluster, in particular, contracted by 16.7% due to significant reductions in pharmaceutical production.

Connection to Broader Economic Trends

Earlier on 17 April, official data from Enterprise Singapore (ES) highlighted a year-on-year plunge of 20.7% in NODX for March, following a marginal decrease of 0.2% in February. This contraction spanned both the electronics and non-electronics sectors, significantly impacting the overall economic landscape.

The electronics sector, despite some growth in segments like infocomms and consumer electronics manufacturing, faced overall challenges as electronic NODX dropped by 9.4%. Particularly hard-hit categories included telecommunications equipment, which plummeted by 38.8%, and integrated circuits, which fell by 8.0%.

The non-electronics sector fared even worse, with a staggering 23.2% decline. Notably, pharmaceuticals, which also saw a severe drop in manufacturing output, declined by 70.3% in NODX, reflecting disruptions in global supply chains and shifts in international demand.

Shipbuilding components also faced near-total reductions, with a 99.8% decline in structures of ships and boats, indicating a severe downturn in global shipping and marine engineering markets.