3 out 10 Singapore-based manufacturers optimistic on business conditions
The electronics cluster showed the most optimism.
The Economic Development Board (EDB) announced that 3 out of 10 Singapore manufacturers were optimistic with business conditions.
Meanwhile, 6% anticipate a weaker business outlook. Overall, a net weighted balance of 20% anticipate a favourable business situation for the period of July to December 2021.
The electronics cluster showed the most optimism, with 40% of firms looking forward to a better business situation. Demand for semi-conductors and electronic modules are the reason for this.
The transport engineering cluster followed next with 21% sharing the same sentiment. The aerospace segment, in particular, attributes this to the gradual resumption of regional and domestic flights, with the land segment also following suit due to the stronger demand for automotive parts.
In the precision engineering cluster, 15% of firms were optimistic about the business conditions in the next six months. Semiconductor-related equipment showed the most positive outlook due to the strong capital investments in the global industry.
The biomedical manufacturing cluster followed suit with 11%. This is due to the medical technology segment that continues to have higher export demand for both Covid and non-covid medical devices.
Meanwhile, 24% of firms from the chemical clusters showed a negative mindset for the rest of the year. The concern revolves around the product prices margins that will be impacted with new capacities in the region.