Singapore’s manufacturing plunges 10% in November

It’s definitely a bad sign for the sector in the coming year ahead.

On a year-on-year basis, manufacturing output decreased 9.6% in November 2011, according to the Singapore Economic Development Board. Excluding biomedical manufacturing, output declined 13.5%. However, on a three-month moving average basis, manufacturing output in November 2011 increased 7.7% compared to the same period in 2010. On a seasonally adjusted month-on-month basis, manufacturing output declined 25.2% in November 2011. Excluding biomedical manufacturing, output fell 0.6%.

The transport engineering cluster's output expanded 17.4% year-on-year in November 2011. Within the cluster, the aerospace segment increased 21.9% as demand for engine repairs from commercial airlines remained robust. The marine & offshore engineering segment registered a gain of 18.6%, as a result of higher output in oil field related equipment and increased activities in oil rig projects. Cumulatively, output of the cluster grew 8.1% in the first 11 months of 2011, compared to the same period last year.

The general manufacturing cluster's output grew by 3.0% year-on-year in November 2011 as output gains in the miscellaneous industries and food, beverages & tobacco segments more than offset the decline in the printing segment. The food, beverages & tobacco segment expanded 7.8% in November, boosted by orders for instant beverages, biscuits and spices for the upcoming Christmas and Chinese New Year festive seasons. The miscellaneous industries segment also saw higher output in leather products, steel structural components and metal furniture. On a year-to-date basis, output of the cluster was 2.6% lower, compared to the same period last year.

Output of the biomedical manufacturing cluster declined 0.6% in November 2011 on a year-on-year basis, mainly due to a decline in pharmaceuticals production. Output of the medical technology segment, on the other hand, rose 5.8% in November with higher export demand for medical devices and ophthalmic goods. On a year-to-date basis, the biomedical output increased by 26.6% compared to the same period a year ago.

The output of the precision engineering cluster shrank 5.2% year-on-year in November 2011, led by the precision modules & components segment which fell 11.4%. The latter was affected by weaknesses in the electronics industry as demand for metal precision components, connectors and bonding wires fell. On a year-to-date basis, the output of the precision engineering cluster was 15.6% higher than the same period a year ago.

The chemicals cluster's output declined 5.4% year-on-year in November 2011 with all segments within the cluster recording lower output. The lower output was attributed mainly to plant shutdowns for maintenance. Cumulatively, output of the chemicals cluster grew 4.2% from January to November 2011, compared to the same period a year ago.

Output of the electronics cluster was 30.1% lower in November 2011 compared to a year ago. All except the infocomms & consumer electronics segment recorded lower output in November. Production of semiconductors remained weak, falling 31.1% in November. Data storage output also fell by 55.2% as a result of components shortage, arising from the flood in Thailand. For the first 11 months of 2011, electronics output declined by 12.4%, compared to the same period a year ago.