Singapore Factory Output Rises 7.2% in June as Electronics Leads Growth
Singapore’s manufacturing output increased 7.2% year on year in June 2026, supported by strong electronics and semiconductor-related production, although overall growth came in below market...
Singapore’s manufacturing output increased 7.2% year on year in June 2026, supported by strong electronics and semiconductor-related production, although overall growth came in below market expectations.
Quick Skim
Data from the Economic Development Board showed that June’s expansion slowed from the revised 17.8% growth recorded in May. Economists surveyed by Bloomberg had expected factory output to rise 9.3%.
Excluding the volatile biomedical manufacturing sector, industrial production increased 9.6% year on year, compared with revised growth of 23.2% in May.
Electronics Leads Manufacturing Growth
Singapore’s electronics cluster recorded the strongest performance among the manufacturing sectors, with output rising 21.3% year on year in June.
Growth was led by the infocomm and consumer electronics segment, which expanded 32.1%, supported by sustained demand related to artificial intelligence.
Semiconductor production increased 21.1%, while computer peripherals and data storage output rose 8.2%. Other electronic modules and components recorded growth of 5.2%.
The continued expansion reflects strong demand across parts of Singapore’s electronics manufacturing ecosystem as investment in AI infrastructure supports semiconductor and computing-related production.
Semiconductor Equipment Supports Precision Engineering
Precision engineering recorded the second-strongest manufacturing growth in June, with output rising 14.9% year on year.
Within the cluster, machinery and systems production increased 16.6%, supported by higher output of semiconductor equipment.
The precision modules and components segment grew 6.6%, driven by higher production of optical instruments, electronic connectors, dies, moulds, tools, jigs and fixtures.
The performance highlights the wider impact of semiconductor demand across Singapore’s manufacturing sector, extending beyond chip production into the equipment and precision engineering companies that support semiconductor manufacturing.
Aerospace and Land Transport Lift Transport Engineering
Singapore’s transport engineering cluster expanded 4.6% year on year in June.
Land transport recorded the strongest increase within the cluster at 41.2%, while aerospace output grew 11.2%.
The aerospace segment benefited from higher production of aircraft parts as well as continued maintenance, repair and overhaul (MRO) activity from commercial airlines.
However, marine and offshore engineering output declined 14.1% due to lower activity and softer demand for oil and gas field equipment.
Chemicals and Biomedical Manufacturing Contract
Growth across Singapore’s manufacturing sector remained uneven.
The chemicals cluster recorded the largest decline, with output falling 11.7%. Petrochemicals production dropped 52.7%, while petroleum output declined 10.2%, partly due to disruptions in feedstock supply.
Biomedical manufacturing contracted 11.4%, driven by a 34.4% decline in pharmaceuticals and a 0.7% decrease in medical technology output.
General manufacturing also fell 6.8%, with food, beverages and tobacco production declining 16.9% due to lower production of milk powder, beverages and cocoa products.
Electronics Remains a Key Manufacturing Driver
On a seasonally adjusted month-on-month basis, Singapore’s overall factory output declined 7.2% in June, reversing May’s revised 6.9% increase.
Despite the slower overall performance, electronics and precision engineering continued to provide strong support to the manufacturing sector.
Sustained AI-related demand is benefiting semiconductor production as well as companies supplying semiconductor equipment and other electronic components, reinforcing electronics as one of the main drivers of Singapore’s industrial growth in 2026.
