Singapore’s manufacturing output decreased by 1.6% year-on-year in April, driven by a significant drop in the volatile biomedical sector. This decline was deeper than the 0.5% contraction predicted by economists, based on data from the Singapore Economic Development Board.

Although April’s drop was less severe than the 9.2% contraction recorded in March, the biomedical sector’s continued weakness weighed heavily on the overall figures. Excluding the biomedical sector, Singapore’s manufacturing output actually grew by 1.7% year-on-year in April, a rebound from the 5.9% fall in March.

The electronics sector, which accounts for nearly half of Singapore’s total manufacturing output, saw a 1.1% drop in April, though this was a marked improvement from the 11.3% contraction in March. Meanwhile, the biomedical sector, which includes pharmaceuticals and medical technology, saw its output plunge by 29.1% year-on-year. The pharmaceutical segment in particular registered a steep 54.6% fall, which was partially mitigated by a 13.6% increase in medical technology production.

In contrast, other sectors experienced growth:

Transport engineering: 10.6%
General manufacturing: 7.3%
Chemicals: 3.1%
Precision engineering: 2.9%
Transport engineering, led by the aerospace sector, was the best-performing cluster in April. This growth was largely attributed to a rising demand for maintenance and repair services as global air travel continues its post-pandemic recovery. DBS economist Chua Han Teng noted that this trend would likely continue to support growth in the sector.

On a seasonally adjusted, month-on-month basis, Singapore’s factory output expanded by 7.1% in April, rebounding from a sharp 16.1% decline in March. Excluding the biomedical sector, output grew by 3.6%, further reversing the previous month’s 8.6% fall.

Looking ahead, Singapore’s manufacturing sector is expected to recover gradually in 2024, with the electronics sector playing a pivotal role in driving growth. Economists believe that Singapore’s electronics output could benefit from the global tech sector’s ongoing upturn, providing a positive spillover for the broader manufacturing sector.