Singapore’s Economic Development Board (EDB) has unveiled the industrial production figures for December 2023, indicating a notable contraction of -2.5% year-on-year. This decline comes after a modestly adjusted level of 0% in November and is primarily attributed to a substantial downturn in biomedical production, known for its inherent volatility.
When excluding the biomedical sector, industrial production for December posted a modest increase of 0.5% year-on-year. However, this growth rate represents a slowdown from the adjusted level in November, which stood at 1.1%.
The annual overview for 2023 reveals a challenging scenario for Singapore’s industrial output, with a contraction of -4.3% when biomedical production is excluded. Considering all sectors, including biomedical, the overall industrial production for the year records a contraction of -3.6%.
Within the industrial landscape, the electronics segment, particularly semiconductors, showcased resilience in December. The output of semiconductor electronics, a crucial component of Singapore’s industrial activities, expanded by 6.3% year-on-year in December, surpassing November’s growth of 5.1%. The semiconductor sub-sector demonstrated notable growth at 17.7%, driven by increased demand in key markets, including the smartphone sector.
Despite the positive performance in December, the electronics segment faced challenges throughout the entire year of 2023, with an overall output contraction of -3.2% compared to the previous year. This decline is indicative of the broader economic challenges and global market dynamics that impacted the electronics industry.
The substantial dip in biomedical production and the nuanced performance of the electronics sector underscore the complexities of Singapore’s industrial landscape. Analysts and industry experts will scrutinize these figures to understand the implications for the broader economy and to assess potential measures to navigate through these challenges in the coming months.