Singapore’s output on a free fall as manufacturing dwindles by 4.8%

It capped an eight-month struggle for the sector.

Not even a stellar showing by the biomedical manufacturing sector could stop manufacturing’s current nosedive, as Singapore’s manufacturing output was dragged by an equally forceful pull by the transport engineering cluster.

According to a report by EDB Singapore, even though the biomedical manufacturing cluster increased 26.3% in September, it was almost wholly overshadowed by a dismal transport engineering cluster which fell by 24%.

Excluding biomedical manufacturing, Singapore’s manufacturing output fell by 10.2%, EDB says.

This came hot on the heels of a record output by the pharmaceuticals and medical technology segment.

“The pharmaceuticals segment grew 29.2%, partly due to the low base effect in September last year when production of the active pharmaceutical ingredients was weak. Cumulatively, output of the biomedical manufacturing cluster contracted 4.9% from January to September this year, compared to the same period last year,” EDB Singapore said.

Meanwhile, the marine and offshore engineering segment led the decline, a rig and ship building activities remain woeful.

“On a year-to-date basis, output of the transport engineering cluster fell 11.8% compared to the same period a year ago,” EDB added.

The chemicals cluster’s output was also partly a growth driver as it increased by 4.4%, led by its specialties segment which grew by 8.8% due to expanded production capacities.

“The petroleum and petrochemicals segments also posted gains of 4.9% and 2.5%, respectively. On the other hand, the other chemicals segment declined 5.4% due to lower demand for plastic sheet, film & articles and glass products. Output of the chemicals clusters increased 3.5% in the first nine months of 2015, compared to the same period in 2014,” EDB Singapore said.

General manufacturing meanwhile, fell by 4.7% as it was weighed down by miscellaneous industries, printing, and food, beverages and tobacco segments.

“On a year-to-date basis, output of the general manufacturing industries cluster decreased 2.1% compared to the same period a year ago,” EDB Singapore said.

The precision engineering and electronics cluster also contracted by 8.7% and 8.6% respectively.

“The machinery & systems segment declined 8.3% with lower output in mechanical engineering work and process control equipment while the precision modules & components segment contracted 9.3%, on account of lower production of industrial rubber, fabricated metal products and dies, moulds, jigs & fixtures. Output of the precision engineering cluster fell 3.5% in the first nine months of 2015, compared to the same period last year,” EDB Singapore said.

“The other electronics modules & components segment recorded output growth, on the back of expanded capacities and higher demand for components used in communication devices. The remaining electronics segments recorded output declines. In the first nine months of this year, output of the electronic segment decreased 4.3% compared to the same period in 2014,” they added.