Global chip shortage should buoy Singapore factory output in H1 2021, watchers say

THE global chip shortage helped to boost a low-base effect, taking Singapore's factory output to a better-than-expected surge in the new year.

Industrial production rose by 8.6 per cent year on year in January, according to Economic Development Board (EDB) figures released on Friday - more than twice the median forecast of 3.6 per cent in a Bloomberg poll.

Prakash Sakpal, Asia senior economist at ING, said that "the data confirms that Singapore's economy is off to a strong start in 2021" and suggested it could push the full-year growth forecast to be revised upwards.