SINGAPORE – Singapore’s manufacturing output increased in June but at a much slower pace with semiconductor production shrinking, according to figures released by the Economic Development Board (EDB) on Tuesday (July 26).
Factory output rose by a marginal 2.2 per cent in June on a year-on-year basis, coming in below the 5.4 per cent increase projected by economists polled by Bloomberg.
It was also a sharp slowdown from the 10.4 per cent expansion logged in May. May’s number was itself revised down substantially from the initial 13.8 growth estimate.
Excluding the volatile biomedical manufacturing sector, output grew 4.2 per cent in June.
The key electronics sector expanded 2.3 per cent in June, down from 22.9 per cent in May. Semiconductor output shrank 2.6 per cent after surging 32.1 per cent in May. Output of the other electronic modules and components segment dropped 23.5 per cent with lower export orders from China.
The infocomms and consumer electronics segment saw increases of 38.3 per cent, while the computer peripherals and data storage segments recorded output growth of 4.7 per cent.
For the first six months of 2022, electronics output grew 9.2 per cent compared with the same period a year ago.
Biomedical output declined 9.2 per cent year on year in June. While the medical technology segment grew 14.3 per cent with higher demand for medical devices from the US and China, the pharmaceuticals segment contracted 24.9 per cent due to a different mix of active pharmaceutical ingredients being produced.
For the first half year, biomedical production shrank 4 per cent.
Chemicals output also suffered in June, falling by 11 per cent. The specialities segment grew 3.9 per cent due to higher production of food additives. But the output of the petroleum segment dropped 2.4 per cent, while petrochemicals fell by 15.7 per cent and other chemicals by 27.6 per cent.
“The petrochemicals segment recorded lower production amid plant maintenance shutdowns, while the other chemicals segment reported lower output of fragrances,” EDB said.
Meanwhile, the other industries in manufacturing recorded increases in output compared with a year ago.
Output in the transport engineering sector expanded 32 per cent in June. This was led by the marine and offshore engineering segment which increased 44 per cent, supported by a higher level of work done in ship repair and offshore projects.
The aerospace segment also grew, by 32.2 per cent, on account of higher production of aircraft parts and more maintenance, repair and overhaul jobs from commercial airlines with the easing of global air travel restrictions, EDB said.
In the first six months of this year, transport engineering output expanded 17.7 per cent.