Singapore's industry output jumps on AI demand

Manufacturing output in Singapore increased by 10.1 percent year on year in March, bringing total growth for the first quarter to 7.9 percent, according to official data released on Monday.

In a statement, the Singapore Economic Development Board said that all manufacturing clusters recorded year-on-year growth in March 2026, with the exception of biomedical manufacturing and chemicals, News.Az reports, citing Xinhua.

Electronics output surged by 30 percent, driven by strong performance in infocommunications and consumer electronics, as well as semiconductors. The growth was supported by robust demand linked to applications in artificial intelligence (AI).

The precision engineering sector expanded by 14 percent, with the precision modules and components segment posting higher output of optical instruments, electronic connectors, and metal precision components. The machinery and systems segment also saw gains, benefiting from increased production of semiconductor equipment.

General manufacturing rose by 7.6 percent, led by the miscellaneous industries segment due to higher output of structural metal products and ready-mix concrete. Growth in the food, beverages, and tobacco segment was supported by increased production of beverage concentrates and animal feed.

Transport engineering recorded a 2 percent increase, with both land and aerospace segments expanding. The aerospace segment was supported by higher production of aircraft parts and continued maintenance, repair, and overhaul (MRO) activity from commercial airlines. However, the marine and offshore engineering segment contracted due to lower output of oilfield and gasfield equipment.

In contrast, biomedical manufacturing declined by 14.3 percent, reflecting weaker demand for medical devices and changes in the mix of active pharmaceutical ingredient production.

Chemicals output fell by 16 percent, largely due to reduced production in petroleum and petrochemicals, caused by disruptions in feedstock supply.

On a seasonally adjusted month-on-month basis, overall manufacturing output rose by 4.7 percent in March.

News.Az 

By Nijat Babayev