Singapore's manufacturing output increased by 7.2% year-on-year in June 2026, marking the tenth consecutive month of expansion, the Economic Development Board reported on July 27 [1, 2, 3, 4, 5]. The growth was driven primarily by the electronics cluster, which expanded 21.3%, fueled by strong demand linked to artificial intelligence applications [1, 2, 3, 4, 5]. Within electronics, infocomms and consumer electronics surged 32.1%, semiconductors grew 21.1%, computer peripherals and data storage increased 8.2%, and other electronic modules rose 5.2% [1, 2, 3, 5].
Excluding the biomedical manufacturing cluster, overall output rose 9.6% year-on-year in June [1, 2, 3, 4, 5]. The precision engineering cluster grew by 14.9%, supported by 16.6% growth in machinery and systems and 6.6% growth in precision modules and components [1, 2, 3, 5]. Transport engineering output advanced 4.6%, led by strong gains in land segment (41.2%) and aerospace segment (11.2%), though marine and offshore engineering declined 14.1% [1, 2, 3, 5].
However, the biomedical manufacturing cluster contracted 11.4%, with pharmaceuticals plunging 34.4% and medical technology slipping 0.7% [1, 2, 3, 4, 5]. The chemicals sector also fell 11.7%, hit by a 10.2% decline in petroleum and a steep 52.7% drop in petrochemicals due to disruptions in feedstock supplies, partly related to ongoing Middle East tensions [1, 2, 3, 4, 5]. The chemical supply issues are expected to continue into the third quarter [4].
Month-on-month, seasonally adjusted manufacturing output fell 7.2% in June, with a sharper 11.2% decline when excluding biomedical manufacturing, reflecting uneven sector performance [4, 5]. May factory output growth was revised up to 17.8% year-on-year, or 23.2% excluding biomedical manufacturing, prior to June’s slowdown [4, 5].
"Despite strong electronics and precision engineering performance, overall manufacturing growth was held back by biomedical manufacturing and chemicals," said Lin Xiuxin, Chief Economist at Overseas Chinese Banking Corporation [4]. DBS Bank economist Cai Hanting noted the sector's tenth consecutive month of expansion, saying, "Singapore’s factory outlook remains optimistic despite uneven sector results," referencing ongoing expansion in the purchasing managers index [4].
Standard Chartered’s Lee Wei Guo highlighted continued strength in electronics but cautioned, "Chemical activity is impacted by raw material supply disruptions amid escalating Middle East tensions and falling global energy stocks, adding uncertainty to the outlook" [4].
June’s factory output figures reveal a sector growing steadily but with divergent sector performances. The government and industry watchers will now watch third-quarter data closely for impact from supply challenges and global conditions.
