Manufacturing output to moderate in 2H17

Semiconductor segment, however, will remain robust.

After slowing down to a 5% growth in May, Singapore's manufacturing production is expected to moderate further in 2H17.

According to RHB, however, this could be undermined by a fading low base effect. Also, the semiconductor production is set to grow at a softer, albeit still robust pace. This is supported by inventory building ahead of the new Apple iPhone launch.

More so, the pharmaceutical output is envisaged to remain weak, as a handful of best-selling drugs have patents expiring this year.

"Once a drug loses patent protection, its sales could drop by a staggering 90% average amid competition from lower-cost alternatives," RHB said.

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