Maybank lifts Singapore GDP forecast on manufacturing growth

AI-related demand continued to support electronics and precision engineering.

Maybank Research upgraded its forecast for Singapore’s economic growth in 2026 to 4.6%, citing strong artificial intelligence-related demand that continued to support the manufacturing sector.

Singapore’s manufacturing output rose 13% YoY in May, easing from a revised 16.5% increase in April but remaining in double-digit territory. On a seasonally adjusted month-on-month basis, output declined by 0.7%.

Electronics remained the main driver, with output rising 35.8% YoY. Semiconductor production increased by 37%, supported by demand for memory chips, servers and other AI-related products.

Precision engineering output grew 32.2%, accelerating from 16.4% in April. The machinery and systems segment expanded by 38.8% amid higher production of semiconductor equipment.

However, growth was uneven across the manufacturing sector. Biomedical manufacturing declined by 24.2%, whilst chemicals output fell 11.5% and transport engineering contracted by 5%.

General manufacturing output grew by a more modest 1.8%, reflecting weaker printing activity and slower expansion in food, beverages and tobacco.

Meanwhile, real non-oil domestic exports increased by 31.8% in May, indicating continued strength in electronics-related external demand.