Singapore factory output up 17.6% in April on AI-related electronics surge, beating forecasts

[SINGAPORE] The Republic’s factory output jumped 17.6 per cent year on year in April on a surge in electronics manufacturing, extending the previous month’s downwardly revised 9.2 per cent rise, data from the Economic Development Board (EDB) showed on Tuesday (May 26).

April’s performance exceeded forecasts by private-sector economists, who had predicted a median 12 per cent expansion in a Bloomberg poll.

Excluding the volatile biomedical manufacturing cluster, industrial production surged 21.5 per cent year on year, compared to March’s revised 12.4 per cent increase.

All clusters recorded growth in factory output in April, except chemicals and biomedical manufacturing.

The linchpin electronics sector surged 44 per cent for the month, extending March’s 29 per cent rise.

Growth was led by the segments of infocomms and consumer electronics as well as semiconductors, on the back of robust artificial intelligence-related demand.

General manufacturing was the next best-performing cluster, growing 16.9 per cent year on year. This was due to higher production of structural metal products and beverages.

Next was precision engineering, with output jumping 15.1 per cent. The machinery and systems segment was driven by higher production of semiconductor equipment, while the precision modules and components segment saw increased output of optical instruments, electronic connectors, metal precision components, and dies, moulds, tools, jigs and fixtures.

The transport engineering cluster grew 10.1 per cent for the month, as the aerospace segment saw higher production of aircraft parts and sustained maintenance, repair and overhaul jobs from commercial airlines. The marine and offshore engineering segment also recorded increased activity in ship repairing and the construction of oil rigs and platforms.

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Conversely, chemicals recorded a 17.6 per cent decline in April, on account of lower output in the petroleum and petrochemicals segments due to disruptions in feedstock supply.

Biomedical manufacturing dipped 16.1 per cent for the month, as the medical technology and pharmaceuticals segments fell on softer demand for medical devices and lower production of biologics, respectively.

On a seasonally adjusted monthly basis, manufacturing output rose 5.8 per cent in April, extending March’s 3.5 per cent rise.

Excluding biomedical manufacturing, production rose 5.8 per cent on the month, extending the previous month’s 2.2 per cent rise.