Singapore manufacturing output rebounds 10.1% in March, led by electronics

Singapore's manufacturing production increased by 10.1 per cent year-on-year in March 2026, bouncing back after a slight dip in February, according to data released by the Economic Development Board (EDB) on April 27. The slower February growth was attributed to temporary shutdowns during the Lunar New Year festive period, which eased as people returned to work in March, said DBS economist Chua Han Teng.

Growth Metrics

On a seasonally adjusted month-on-month basis, manufacturing output increased 4.7 per cent in March. Excluding the biomedical manufacturing cluster, manufacturing output increased 3.5 per cent.

Sector Performance

All manufacturing clusters recorded output growth in March on a year-on-year basis, except biomedical manufacturing and chemicals.

Electronics grew the most, expanding by 30 per cent. The growth came from the infocomms and consumer electronics segments, as well as the semiconductors segment on the back of robust AI-related demand.

Precision engineering output surged 14 per cent, with the precision modules and components segment recording higher output of optical instruments, electronic connectors, metal precision components and tools, dies, moulds, jigs and fixtures.

General manufacturing also grew by 7.6 per cent.

Declining Sectors

Output in biomedical manufacturing declined 14.3 per cent due to softer demand for medical devices and a different production mix of active pharmaceutical ingredients. Chemicals also declined 16 per cent, on account of lower output in the petroleum and petrochemicals segments due to disruptions in feedstock supply.

Outlook and Headwinds

Following the heightened volatility observed in the first quarter of 2026, manufacturing performance is expected to be uneven in the coming months, said Mr Chua. While the trend for electronics remains positive, early signs suggest that Singapore's broader manufacturing sector is facing rising input cost pressures and longer delivery lead times linked to the Middle East conflict, as reflected in the March manufacturing purchasing managers' index.

Headwinds in the petrochemicals segment could intensify in the months ahead as refineries draw down their limited feedstock inventories, said UOB economist Jester Koh. "Nevertheless, overall manufacturing output could continue to hold up, cushioned by strong electronics and semiconductor output," he added.