Economist at UOB Group Barnabas Gan assesses the latest industrial/manufacturing figures in Singapore.
Key Takeaways
“Singapore’s industrial production rose 27.5% y/y (-3.0% m/m sa) in June 2021, in line with our expectations for a 27.4% y/y expansion. This is the fastest growth since November 2010 (+41.2% y/y, +1.5% m/m sa).”
“Manufacturing growth in the second quarter of 2021 was slightly below the advance estimates by the Ministry of Trade and Industry (MTI).”
“We continue to expect Singapore’s electronic and precision engineering clusters to support the overall manufacturing sector, on the back of global growth and a positive external environment.”
“We maintain our full-year manufacturing growth outlook at 8.0% in 2021, which was recently upgraded from 5.5% in our previous manufacturing report. The rosier manufacturing environment also reinforces our recent call to upgrade Singapore’s GDP growth to 6.5%, from a prior 5.5% outlook.”