Singapore’s manufacturing output rises 13.8% in May on strong demand for semiconductors

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SINGAPORE: Singapore’s manufacturing output rose 13.8% year-on-year in May on strong demand for semiconductors amid a global chip shortage.

Excluding biomedical manufacturing, production rose 18%, according to data from the Economic Development Board (EDB) released Friday, June 24.

May’s growth is higher than the revised annual growth of 6.4% in April.

On a seasonally adjusted monthly basis, manufacturing output rose 10.9% in May. Excluding biomedical manufacturing, production increased by 9.8%.

Production in the electronics cluster increased the most in May – 33.6% on an annual basis. The semiconductor segment grew 45.7%, supported by strong demand from 5G and data center markets amid global chip shortages, EDB said.

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Cumulatively, the electronics cluster increased by 17.3% for the period of January to May 2022 compared to the same period a year ago.

Production in the precision engineering group rose 3.2% year-on-year in May. The machinery and systems segment grew 6.9%, largely driven by higher production of semiconductor foundry equipment.

The precision modules and components segment fell by 4.5% with a decline in the production of optical products.

The transportation engineering cluster grew 12.9% in May from a year ago. The aerospace segment jumped 27.2%, driven by increased production of aircraft parts and increased commercial airline maintenance, repair and overhaul jobs as restrictions eased worldwide on air travel.

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Many countries, including Singapore, have reopened their borders this year.

The marine and offshore engineering segment increased by 8.2%, supported by a higher level of work carried out in offshore projects.

General manufacturing output rose 9% year-on-year in May, with all segments recording an increase. The food, beverage and tobacco segment grew by 14.7%, with increased production of beverages, dairy products and animal feed.

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Production of chemical products fell 3.4% in May compared to the same period last year. The oil and petrochemical segments contracted 1% and 14.7% respectively, with the latter seeing lower output due to plant maintenance shutdowns.

Production in the biomedical manufacturing cluster fell 7.2% in May year-on-year. The medical technology segment grew 2.7% with increased demand for medical devices in the US and EU.

The pharmaceuticals segment contracted 14.8% due to the production of a different mix of active pharmaceutical ingredients, EDB said.

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