Singapore’s manufacturing output surges 21.7% in August

Biomedical manufacturing expanded the most at 145.8%, buoyed by the strong growth in pharmaceuticals.

On a year-on-year basis, manufacturing output increased 21.7% in August 2011. Excluding biomedical manufacturing, output declined 10.5%, according to a report released by the Economic Development Board. On a three-month moving average basis, manufacturing output in August 2011 increased 13.1% compared to the same period in 2010. On a seasonally adjusted month-on-month basis, manufacturing output rose 3.9% in August 2011. Excluding biomedical manufacturing, output declined 4.7%.

Output of the biomedical manufacturing cluster expanded 145.8% in August 2011 year-on-year, due to a surge in the pharmaceuticals output. The strong growth in the pharmaceuticals segment was attributed to a mix of higher valued-added active pharmaceutical ingredients being produced. Output of the medical technology segment also went up by 5.4% in August, on the back of higher export demand for medical devices. On a year-to-date basis, the biomedical output increased by 14.3% compared to the same period a year ago.

The output of the precision engineering cluster grew 4.1% year-on-year in August 2011. The growth was attributed to the machinery & systems segment, which recorded higher output of semiconductor related equipment, process control equipment and mechanical engineering works. On the other hand, the precision modules & components segment declined 10.4%, with a slowdown in demand for precision engineering parts, as well as dies, moulds, jigs and other tools that are used in the manufacturing process. On a year-to-date basis, the output of the precision engineering cluster was 24.1% higher than the same period a year ago.

Output of the transport engineering cluster rose 1.2% year-on-year in August 2011. The aerospace segment expanded 5.5% with a higher volume of maintenance and upgrading work received from commercial airlines. The marine & offshore engineering segment also edged up 1.7% in August, with the completion and deliveries of some marine vessels. In contrast, the land transport segment declined 25.7% compared to same period last year when there was a higher level of activity to meet scheduled deliveries. Cumulatively, output of the cluster grew 5.4% in the first eight months of 2011, compared to the same period last year.

The chemicals cluster's output shrank 1.2% year-on-year in August 2011. The specialties segment continued to post a strong gain of 22.5% on the back of new production capacities that started earlier this year. The petroleum segment grew by 8.9% compared to a year ago when throughput was impacted by maintenance shutdowns. In contrast, the other chemicals and petrochemicals segments fell 8.7% and 26.1% respectively, largely due to plant shutdowns for maintenance. Cumulatively, output of the chemicals cluster grew 7.3% from January to August 2011, compared to the same period a year ago.

The general manufacturing cluster's output declined by 8.0% year-on-year in August 2011. The printing, as well as food, beverages & tobacco segments' output rose 4.1% and 0.8% respectively, but this was offset by output declines in the miscellaneous industries (-15.4%). The miscellaneous industries segment saw lower production of secondary batteries, wooden furniture and structural metal products. On a year-to-date basis, output of the cluster was 2.1% lower than the same period last year.

Output of the electronics cluster was 21.9% lower in August 2011 compared to the same period last year. The weakness in the cluster was broad-based as global economics uncertainties put a drag on demand for electronics. For the first eight months of 2011, electronics output declined by 4.1% compared to the same period a year ago.