According to the Singapore Economic Development Board (EDB), the business sentiment among Singapore’s manufacturers for the July-December period is slightly positive. This positivity is seen as companies continue to exercise caution due to global economic and geopolitical uncertainties.
The EDB reports that 13% of manufacturers expect business conditions to improve during this period, while 7% anticipate a weaker business outlook. This means that a net weighted 6% of manufacturers are anticipating an improved business situation compared to the second quarter of 2023.
Within the manufacturing sector, the transport engineering sector appears to be the most optimistic. A net weighted 43% of companies in this sector expect an improved operating environment in the second half of this year. The positive sentiment is largely driven by the aerospace segment, which predicts sustained demand for aircraft maintenance, repair, and overhaul jobs, thanks to the robust demand for air travel.
Electronics Sector
A net weighted 11% of companies in the electronics sector anticipate business conditions to improve for the July-December period, compared with the second quarter, according to the Economic Development Board (EDB). The encouraging outlook can be mainly attributed to the semiconductors segment. Ongoing adjustments in clients’ inventories are expected to improve the supply-demand imbalance and contribute to a gradual pick-up in industry demand.
Precision Engineering Companies
The EDB also reveals that a net weighted 7% of precision engineering companies predict business conditions to improve for the July-December period. This optimism is primarily driven by the machinery and systems segment. Some companies, especially those supporting the marine and offshore industry, anticipate higher orders during this period.
Biomedical Manufacturing Sector
Among various sectors, the biomedical manufacturing sector appears to be the least upbeat. According to the EDB, a net weighted 12% of companies in this sector predict a weaker business outlook in the second half, compared with the second quarter. This less optimistic outlook is mostly led by the medical technology segment, which expects softer orders for life science instruments and consumables due to the uncertain macroeconomic situation.
Business Outlook for Chemicals Sector
According to the Economic Development Board (EDB), a net weighted 3% of companies in the chemicals sector anticipate worsening business conditions in the second half of the year, compared to the previous quarter. This insight highlights a growing concern within the industry.
Weaker Business Environment for General Manufacturing Sector
The EDB also reported that within the broader manufacturing sector, a net weighted 8% of companies predict a decline in the business environment for the upcoming July-December period. This projection suggests a potential weakness across the industry as a whole.
It is important for companies within these sectors to stay proactive and adapt their strategies accordingly. By closely monitoring market trends and making agile decisions, businesses can mitigate potential challenges and find new opportunities for growth.