Transport engineering sector keeps manufacturing growth outlook at 4%

The sector’s growth stays as borders keep reopening.

The manufacturing growth will remain at 4% in 2022 on the back of “encouraging” growth of the transport engineering sector caused by the gradual reopening of global borders, according to financial services firm, UOB.

UOB’s comments were made after the Economic Development Board recorded a  6.2% increase year-on-year in April 2022. Transport engineering recorded the highest growth with 17.2% in April 2022 compared to a year ago.

Further, the global economic momentum into 2022 will likely uplift industries including general manufacturing, chemicals, electronics, and precision engineering.

But compared to the 9.2% growth in the same period in 2021, industrial production decelerated year-to-date, with only a 7.3% increase in the first four months of 2022.

As for the overall manufacturing and economic growth, the country will be dependent on global growth and trade winds, UOB said.

Amongst the factors that would impact the market’s overall growth are the Russia-Ukraine conflict, global supply disruptions, monetary policy tightening stance in the advanced economies, and COVID-19 woes.