Singapore factory output falls 7.4% in May as biomedical growth cools amid circuit breaker

SINGAPORE – Singapore’s manufacturing output shrank last month, reversing two straight months of expansion, as the pace of growth in the volatile biomedical cluster fell sharply.

Overall production dropped 7.4 per cent year on year in May after increasing 13.6 per cent in April, according to data released by the Economic Development Board on Friday (June 26).

Biomedical output slowed last month to 5.9 per cent from a 100.5 per cent surge a month earlier, as growth in the medical technology segment fell 20.1 per cent, in part due to the tighter circuit breaker measures imposed during the period.

The pharmaceuticals segment, however, expanded 14.7 per cent on the back of higher production of active pharmaceutical ingredients and biological products.

The biomedical sector, which has expanded by 49.9 per cent year to date, had held up Singapore’s manufacturing production for the last couple of months. Overall output expanded 13.6 per cent in April and 21.8 per cent in March, after a 1.1 per cent drop in February.

Excluding biomedical manufacturing, May output was down 10.4 per cent.

Electronics production fell 1 per cent year on year in May, even as the semiconductors segment grew 1.6 per cent, supported by demand from cloud services and data centres, as well as 5G markets. By contrast, the rest of the electronics segments contracted.

Output of the electronics cluster has shrunk 3.6 per cent in the first five months of this year.

Precision engineering output declined 5.3 per cent year on year last month, dragged down by precision modules and components segment’s 23 per cent contraction as Covid-19 dampened demand and disrupted operations locally and in key export markets.

Chemicals production fell 13.5 per cent year on year with all segments, including petrochemicals and petroleum output contracting due to weak demand and plant maintenance shutdowns.

Transport engineering output plunged 40.7 per cent and general manufacturing shrank 26.9 per cent.

Overall factory production decreased 16.5 per cent on a seasonally adjusted month on month basis. Excluding biomedical manufacturing, month on month output fell 6.2 per cent.

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