SINGAPORE: Amid a slower economic growth, Singapore's manufacturing output decreased 6.9 per cent in June as compared to the previous year, data from the Economic Development Board (EDB) showed on Friday (Jul 26).
On a seasonally adjusted month-on-month basis, manufacturing output increased 1.2 per cent in June 2019.
AdvertisementAdvertisementThis comes after Singapore’s economy grew by 0.1 per cent year-on-year in the second quarter, the lowest in a decade.
Manufacturing, which accounts for about one-fifth of the economy, was the main drag, said economists.
[h=3]READ: As Singapore relooks 2019 projections, economists warn of possible technical recession[/h][h=3]READ: Bearing brunt of trade war, Singapore chipmakers cut jobs[/h] AdvertisementAdvertisementOutput fell 9.9 per cent, excluding biomedical manufacturing. For this cluster, output increased 5 per cent in June 2019 on a year-on-year basis. Pharmaceuticals output grew 5.3 per cent, supported by higher output of biological products, while the medical technology segment rose 4.2 per cent on the back of higher export demand for medical devices.
"On a year-to-date basis, the biomedical manufacturing cluster increased 9.6 per cent compared to the same period a year ago," EDB's said.
For general manufacturing, output increased 10.8 per cent on a year-on-year basis in June 2019. The food, beverages and tobacco segment expanded 22.2 per cent on account of higher output in beverage products, while the miscellaneous industries segment rose 0.9 per cent. However, the printing output declined 14.8 per cent.
On a year-to-date basis, the general manufacturing industries cluster grew 4.3 per cent compared to the same period a year ago.
Output rose 0.3 per cent in June 2019 compared to a year ago for the precision engineering cluster. Under this cluster, the machinery and systems segment grew 3.3 per cent, on account of higher output in semiconductor foundry equipment and refrigeration systems.
[h=3]READ: Commentary: Singapore and the dreaded R word - recession[/h]In contrast, the precision modules and components segment recorded lower production of metal precision products and dies, moulds, tools, jigs and fixtures.
Overall, the precision engineering cluster fell 8.3 per cent in the first half of 2019, the data showed.
For the chemicals segment, output decreased by 3.3 per cent year-on-year in June 2019. The other chemicals, petroleum and specialties segments grew 3 per cent, 2.4 per cent and 0.4 per cent respectively, EDB said. However, the petrochemicals segment contracted 12.3 per cent due to maintenance shutdowns in some plants.
In the first six months of this year, output of the chemicals cluster fell 0.1 per cent compared to the same period in 2018, the data showed.
[h=3]READ: Commentary: What slowing growth means for the man in the street[/h]In terms of transport engineering, output decreased 14.2 per cent in June 2019 compared to a year ago. The land transport and aerospace segments grew 15.3 per cent and 7.3 per cent respectively, with the latter registering more repair and maintenance jobs from commercial airlines, EDB said.
The marine and offshore engineering segment shrank 33.3 per cent, on account of lower levels of offshore and shipbuilding and repairing activities.
This cluster fell 0.6 per cent overall in the first six months of 2019 compared to the same period last year.
For the electronics cluster, output contracted 18.8 per cent in June 2019 on a year-on-year basis. All segments except the data storage segment recorded lower production, EDB added.
"Cumulatively, the electronics cluster’s output fell 6.9 per cent in the first six months of this year, compared to the same period last year," EDB said.
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