Singapore exporters may not see significant boost this year: MTI

THE outlook for the manufacturing sector remains weak, said the Ministry of Trade and Industry (MTI) on Wednesday morning, as it said the economy grew 2 per cent in 2015.

It flagged how external demand for Singapore exports may not see a significant boost this year, given the continued slowdown in China and the services-driven nature growth in the US.

It also said that lower oil prices have weakened the prospects for new rig orders in the marine & offshore segment, and heightened risks of further deferments and cancellations of existing orders.

"There could also be negative spillover effects on firms in the precision engineering cluster that support the oil & gas industry," added MTI.

It added that prospects for the construction sector have weakened in 2016 - due to a drop in contracts awarded in 2016, and continued sluggishness in private sector construction demand.

Labour constraints, too, will continue to weigh on the growth of labour-intensive services sectors such as food services.

However, not all was doom and gloom; MTI said sectors such as finance & insurance and wholesale trade are likely to provide support to growth.