Singapore manufacturers raised their six-month business outlook as artificial intelligence demand strengthened electronics and precision engineering, although export-order challenges and uneven prospects across industries tempered the survey’s positive signal.
The Singapore Economic Development Board (EDB) released its findings Nov. 2. For October 2026 through March 2027, the net weighted balance for business conditions reached 24%, twice the 12% recorded in the prior survey. The balance reflected 29% of participating firms expecting improvement and 5% anticipating deterioration.
Precision engineering led the industry readings at 48%, with electronics at 42%. EDB linked confidence among semiconductor-equipment makers to continued global AI investment, while electronics producers cited demand for chips used in AI applications. Biomedical manufacturing registered 14% and general manufacturing 7%; transport engineering was close to unchanged at 1%. Chemicals posted a negative 13%, and petroleum firms were most downbeat at negative 28%, amid uncertainty over crude-oil feedstock availability.
Production plans also pointed upward for the fourth quarter of 2026. The net weighted balance of manufacturers expecting output to rise from the third quarter was 34%, led by electronics at 55% and precision engineering at 54%. Electronics companies anticipated larger runs of semiconductors, computer peripherals and data-storage products for AI data centers. Precision engineering firms planned to increase production of metal precision components, bonding wires and equipment used in semiconductor manufacturing. Biomedical manufacturing registered 19% and general manufacturing 10%; transport engineering was even at 0%, while chemicals was 5%.
Employment expectations were steadier: 72% of manufacturers expected fourth-quarter staffing to remain broadly in line with the third quarter, and the net weighted employment balance was 14%. EDB said most manufacturing groups planned to expand workforces, with biomedical manufacturing and transport engineering as exceptions.
Export orders posed a concern: 23% of firms, on a weighted basis, expected trouble securing orders in the fourth quarter. Firms identified price competition from foreign suppliers and conditions abroad, including geopolitical events, tariffs and inflationary pressure. Transport engineering businesses separately pointed to rising material, fuel and freight expenses.
EDB conducted the survey in September and October 2026 among 397 manufacturing establishments; 83% responded.
