Singapore Manufacturers Expect Favorable Business Situation in Second Half

SINGAPORE--Business sentiment in Singapore's manufacturing sector remains positive for the July-to-December period despite the Covid-19 situation and pressure on supply chains, the Singapore Economic Development Board said Friday.

Overall, a net weighted 20% of manufacturers anticipate a favorable business situation for the period, the EDB said. A weighted 26% of manufacturers expect better business conditions, while a weighted 6% foresee a weaker business outlook.

Within the manufacturing sector, the electronics cluster is the most optimistic, with a net weighted 40% of companies expecting an improved business situation in the second half, the EDB said. This is mostly attributed to semiconductors and other electronic modules and component segments, which expect demand from the 5G market, cloud services and data centers to stay robust.

A net weighted 21% of companies in the transport-engineering cluster foresee a positive business environment for the July-December period, EDB said. Companies in the aerospace segment expect business conditions to improve, in anticipation of the gradual resumption of regional and domestic flights, as more countries step up their Covid-19 vaccination programs.

A net weighted 15% of companies in the precision-engineering cluster predict a favorable business situation for the period, while a net weighted 11% of companies in the biomedical-manufacturing cluster expect better business prospects, the EDB said. In contrast, a net weighted 24% of companies in the chemicals cluster are the least optimistic, anticipating a less favorable business situation until December.

Meanwhile, a weighted 74% of manufacturers expect the employment level in the third quarter to stay similar to that in the second quarter. A net weighted 8% of them predict an increase in the workforce in the next three months. In particular, the electronics and biomedical manufacturing clusters are the most optimistic about their employment outlook, the EDB said.

Write to Ronnie Harui at ronnie.harui@wsj.com


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  07-30-21 0120ET
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