By Ronnie Harui
SINGAPORE – The business climate in Singapore’s manufacturing sector remains positive for the October-March period despite the Covid-19 situation and pressure on supply chains, the Singapore Economic Development Board said on Friday.
Overall, a 16% weighted net of manufacturers anticipates favorable conditions for the period, compared to the third quarter, the EDB said. A 22% weight of manufacturers expects better trading conditions, while a 6% weight predicts weaker business prospects.
Within the manufacturing sector, the electronics cluster is the most optimistic, with a net weight of 27% of companies expecting a better business situation over the October-March period, compared to the third quarter, said the EDB . This optimism is mainly driven by the semiconductor segment, which continues to expect strong demand from the 5G market, cloud services and data centers.
A net weighting of 24% of companies in the transport engineering division anticipates an improvement in the operating environment. Companies in the aerospace segment expect a higher volume of maintenance, repairs and overhauls, as more countries relax restrictions on international travel.
In the precision engineering cluster, 10% of net-weighted companies predict a favorable business outlook, the EDB said. Strong global demand for semiconductors continues to generate optimism among companies in the metal stamping, bond wire and precision metal components industries in the precision modules and components segment.
A net weight of 8% of companies in the general manufacturing industries cluster expects a positive business outlook, while a net weight of 3% of companies in the chemicals cluster expects weaker trading conditions during the period. compared to the third trimester.
Meanwhile, 71% of manufacturers expect the employment level in the fourth quarter to be similar to that in the third quarter. Overall, 11% of manufacturers anticipate a larger workforce, the EDB said.
Write to Ronnie Harui at [email protected]