Singapore to benefit from improving semiconductor sales in Asia

The output of the electronics cluster has already grown 0.4% in October.

The easing of contraction of semiconductor sales in the Asia Pacific could suggest further positive growth in Singapore’s related industries, according to UOB Global Economics and Markets Research.

These industries include the electronics and precision engineering clusters, which posted YoY growth in output by 0.4% and 3.4% respectively. The former was driven by growth from the infocomms & consumer electronics, data storage and computer peripherals segments, whilst the latter was led by a 9.9% rise in production of precision modules & components.

These sectors were noted to have previously been dragged by lacklustre semiconductor-related production and export demand.

Industrial production in Singapore is projected to grow 2.1% YoY in Q4, with UOB improving its projected decline for the whole 2019 to 0.5% from 3%, as manufacturing output showed positive growth in the past two months.

The growth in October was led by the biomedical sector, which was noted to be volatile. However, the rise in the city’s semiconductor-related industries may have reflected an improving sentiments in the US-China trade negotiations and expectations of global recovery in the next year.

Data from the Economic Development Board (EDB) revealed that Singapore’s manufacturing output rose 4% YoY in October, mainly led by a 24% jump in the biomedical sector.