Singapore manufacturing slides 2.5% in May: EDB

Is the country’s cash cow drying up?

Singapore’s manufacturing output dipped by 2.5% year on year in May, led by a stunning 11.2% drop in the pharmaceuticals sector.

According to data released today by the Economic Development Board, the biggest losers this month are the biomedical manufacturing cluster with a 9.2% decrease, followed by the electronic cluster’s 7.5% decline.

“On a year-on-year basis, manufacturing output declined 2.5% in May 2014. Excluding biomedical manufacturing, output fell 0.5%. On a three-month moving average basis, manufacturing output rose 5.0% in May 2014, compared to a year ago. On a seasonally adjusted month-on-month basis, manufacturing output contracted 5.7% in May 2014. Excluding biomedical manufacturing, output increased 0.4%,” noted the EDB.

Here’s more:

The chemicals cluster’s output rose 8.6% on a year-on-year basis in May 2014. Growth was led by the petrochemicals segment which rose 14.6% on the back of expanded capacities.

The specialties and other chemicals segments grew 11.4% and 5.2%, respectively, boosted by higher regional demand for additives and perfumes & fragrances. Output of the chemicals cluster in the first five months of 2014 increased 7.9%, compared to the same period in 2013.

Output of the transport engineering cluster grew 5.6% year-on-year in May 2014. The aerospace segment expanded 13.6%, due in part to the low base last year when demand for repair and maintenance jobs from the US and Europe was weak.

The marine & offshore engineering segment grew 3.9%, on the back of higher contributions from rig building projects. Output of the transport engineering cluster in the first five months of 2014 increased 10.6%, compared to the same period last year.

Output of the precision engineering cluster grew 0.2% year-on-year in May 2014. More demand for mechanical engineering work and higher exports of lifts & escalators led the machinery & systems segment to record a gain of 2.5%.

This was partly offset by the precision modules & components segment, which declined 2.4% due to lower output in electronic connectors and wire & cable products. Cumulatively, output of the precision engineering cluster increased 3.8% for the first five months of this year, compared to the same period last year.

The general manufacturing industries cluster’s output fell 1.1% in May 2014 on a year-on-year basis. The miscellaneous industries segment rose 1.3% on account of higher output of batteries and metal doors, windows, grilles & gratings.

In contrast, the food, beverages & tobacco and printing segments contracted 3.3% and 4.1%, respectively. On a year-to-date basis, output of the general manufacturing industries cluster increased 1.0% compared to the same period a year ago.

Output of the electronics cluster fell 7.5% year-on-year in May 2014. The infocomms & consumer electronics and other electronics modules & components segments grew 9.1% and 2.0%, respectively, but semiconductor output decreased 6.4%.

Cumulatively, output of the electronics cluster expanded 2.7% from January to May this year, compared to the same period last year.