Manufacturing output up 12.6% in December 2011

Output would have declined 9% if not for biomedical manufacturing.

The Singapore Economic Development Board reported:

On a year-on-year basis, manufacturing output grew 12.6% in December 2011. Excluding biomedical manufacturing, output declined 9.0%. On a three-month moving average basis, manufacturing output in December 2011 increased 9.2% compared to the same period in 2010. On a seasonally adjusted month-on-month basis, manufacturing output increased 7.8% in December 2011. Excluding biomedical manufacturing, output rose 6.7%. For the whole of 2011, manufacturing output grew 7.6% compared to 2010.

Output of the biomedical manufacturing cluster surged 111.6% in December 2011 on a year-on-year basis, boosted by the 121.6% expansion in pharmaceuticals output. The strong performance in the pharmaceuticals segment was mainly due to a different mix of active pharmaceutical ingredients being produced. Output of the medical technology segment also rose 14.3% in December on higher export demand for medical devices. On a year-to-date basis, biomedical output increased 31.5% compared to the same period a year ago.

The transport engineering cluster’s output expanded 15.1% year-on-year in December 2011, with all segments within the cluster recording higher output. Growth was led by the marine & offshore engineering segment which grew 19.2%, with higher percentage of completion in shipbuilding and oil rigs projects in December. The aerospace segment also expanded 13.1%, benefiting from healthy demand for air travel in Asia, which in turn continued to spur demand for maintenance and repair activities from commercial airlines. For the whole of 2011, output of the cluster grew 8.7% compared to 2010.

The output of the precision engineering cluster rose by a marginal 0.3% year-on-year in December 2011. Growth of the cluster was supported by the machinery & systems segment, which grew 11.5% as a result of higher demand for semiconductor-related equipment and mechanical engineering works. On the other hand, the precision modules & components segment declined 15.4% as demand for connectors, metal stamping work, and dies, moulds & jigs fell. On a year-to-date basis, the output of the precision engineering cluster was 14.6% higher compared to the same period a year ago.

The general manufacturing cluster’s output shrank 1.1% year-on-year in December 2011. Declines in the miscellaneous industries and printing segments were partially offset by output gains in the food, beverages & tobacco segment. Festive season demand for biscuits, soft drinks and confectionery products continued to support growth in the food, beverages & tobacco segment, which rose 9.2%. The miscellaneous industries and printing segments declined 3.8% and 7.8%, respectively. Output of the cluster was 2.7% lower in 2011 compared to 2010.

The chemicals cluster’s output declined 4.6% year-on-year in December 2011. Output of the specialty chemicals segment posted a gain of 19.2% in December, primarily due to new production capacities that started earlier this year. In contrast, the petroleum segment’s output fell 9.7% due to weaker refining margins, while the petrochemicals segment also contracted as a result of maintenance shutdowns. Output of the chemicals cluster grew 3.4% in 2011 compared to 2010.

Output of the electronics cluster was 22.8% lower in December 2011 compared to a year ago. The decline was broad-based, due to continued weakness in global electronics demand. For 2011, electronics output declined 13.3%, compared to 2010.