Singapore manufacturing output down 8% in August

SINGAPORE — Singapore's manufacturing output fell 8 per cent year-on-year in August on the back of sharp falls in electronics and precision engineering output, data from the Economic Development Board (EDB) showed on Thursday (Sept 26).

This compares to a revised 0.1 per cent year-on-year drop in July, EDB data showed.

On a seasonally adjusted month-on-month basis, manufacturing output decreased 7.5 per cent. Excluding biomedical manufacturing, output fell 12.4 per cent year-on-year.

The electronics cluster saw the largest decline in August, contracting 24.4 per cent year-on-year.

The data storage and infocomms and consumer electronics segments grew 25 per cent and 6.3 per cent respectively, while the rest of the electronic segments recorded a contraction in output. 

Precision engineering output fell 13.6 per cent year-on-year, with both segments recording lower output. The machinery and systems segment contracted 11.9 per cent with lower output of refrigeration systems and semiconductor equipment, EDB said. 

The precision modules and components segment declined 15.9 per cent on the back of lower production of optical products and metal precision components.

Meanwhile, transport engineering, general manufacturing, chemicals and biomedical manufacturing all registered year-on-year growth.

Biomedical manufacturing output expanded 10.6 per cent in August, with the pharmaceutical segment growing 13.3 per cent with higher production of active pharmaceutical ingredients, while the medical technology segment rose 2.3 per cent on the back of higher export demand for medical devices.

General manufacturing output increased 5.8 per cent in August on a year-on-year basis, with the food, beverages and tobacco segment expanding 10.5 per cent, on account of higher output of milk powder and beverage products.

The miscellaneous industries segment grew 2.6 per cent with higher production of metal tanks and containers as well as wearing apparel. However printing output declined 4.9 per cent.

Chemicals output increased 2.7 per cent year-on-year. The other chemicals segments expanded 19.1 per cent, on account of higher output in fragrances. 

The petrochemicals, specialties and petroleum segments contracted 0.7 per cent, 4.7 per cent and 13 per cent respectively, with the petroleum throughput affected by maintenance shutdowns in some plants. 

Transport engineering output was 0.5 per cent higher in August compared to a year ago.

The land and aerospace segments grew 10.9 per cent and 10.5 per cent respectively, with the latter registering more repair and maintenance jobs from commercial airlines, EDB said.

"On the other hand, the marine and offshore engineering segment fell 11.5 per cent, on account of lower levels of offshore and shipbuilding and repairing activities," the board added.

The latest manufacturing output figures come as private sector economists and analysts lowered their forecast for Singapore's economic growth in 2019.

The economy is now expected to expand by 0.6 per cent this year, down from an earlier estimate of 2.1 per cent in June, according to the survey report released by the Monetary Authority of Singapore this month. CNA

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