Manufacturing sector keeps hopes high for H2
Electronic firms at 40% were the most optimistic in facing the remaining half of the year.
Some 26% of businesses in the manufacturing sector are optimistic about better conditions as the year enters its second half, whilst 6% anticipate a weaker outlook, according to a survey published by the Singapore Economic Development Board, 30 July.
Of those interviewed, the electronics cluster showed the most optimism with 40% of firms showing belief in the second half of 2021. Part of this can be attributed to the upcoming demand for electronic modules from the 5G market and similar businesses.
The transport engineering cluster follows with 21% looking towards the resumption of regional and domestic flights as the high point of the next half.
Other clusters with similar views include precision engineering at 15% and biomedical manufacturing at 11%, with both pointing towards strong demand for their continued confidence.
On the other hand, 24% of the chemicals group show less optimism, with their concern being the effect of new capacities in the region towards pricing.
Overall, a weighted 71% of the manufacturing sector expects the output level in the third quarter (Q3) of 2021 to be the same as second quarter, with 9% even foreseeing that the level would increase. This is the same for all clusters, aside from the chemical and general manufacturing sectors.
Meanwhile, 74% expect employment rates to stay the same in Q3. 8% of the sector, however, predicts an increase in the workforce over the coming months, with the electronics and biomedical manufacturing bodies being the most positive.