3 factors driving Singapore's manufacturing sector rebound in 2014

Battered sector getting back on its feet.

Maybank Kim Eng predicts a more bullish year for Singapore manufacturing as the sector benefits from faster global gross domestic product growth, a turnaround in global ICT industries, and bustling regional trade.

"We expect global real GDP growth to accelerate to +3.5% from an estimated +3.1% in 2013. We also expect the turnaround in the global ICT industries to gain traction in 2014 in favour of Singapore’s export-based manufacturing sector," said OCBC.

"At the same time, regional economies’ trade activities in 2014 are expected to sustain the rebound that emerged during 2H 2013 on the rise in intermediate and final demands from within the region and from the major economies. These should be supportive of the trade-related services sector."

In fact, Maybank explains that the Singapore economy as a whole has been benefiting from improving global economic conditions since mid-2013, and expect this to carry over in 2014, leading to an estimated 4.0% growth for the Singapore economy this year.

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