Singapore manufacturing sector foresees healthier business conditions

The positive business sentiment is broad-based with all manufacturing clusters projecting better business conditions for the period April – September 2012, compared to a quarter ago.  However, many firms are still concerned with the global economic uncertainties in relation to the strength of US recovery, the European debt crisis and high oil prices.

Within the manufacturing cluster, the electronics cluster is the most upbeat, with a net weighted balance of 30 per cent of firms expecting better business prospects in the next six months, compared to a quarter ago.  This optimistic outlook is led by the semiconductor segment, which anticipates improved global demand for chips in the months ahead as inventory levels are adjusted downwards.

The general manufacturing cluster is the next most optimistic, with a net weighted balance of 19 per cent of firms in the cluster expecting business situation to improve in the next six months ending September 2012.  In particular, the other manufacturing industries segment projects positive business conditions over the next two quarters, supported by demand from the construction sector.

In the precision engineering and chemicals clusters, a net weighted 9 per cent of firms in each cluster predict an improved business outlook in the next six months compared to a quarter ago. Within the precision engineering cluster, the semiconductor equipment, bonding wires and connectors manufacturers are the most optimistic. In the chemicals cluster, while the firms expect a better business.

Output Forecast for April – June 2012

Compared to the first quarter of 2012, a net weighted balance of 22 percent of manufacturers expects output to increase in the second quarter of 2012.

The biomedical manufacturing cluster is the most upbeat, with a net weighted balance of 41 per cent of firms projecting a higher level of production in the second quarter of 2012, compared to the first quarter of 2012.  Both the pharmaceutical and medical technology segments foresee higher output with improved demand. 

The next most upbeat is the electronics cluster, in which the semiconductor, data storage and electronic modules & components segments anticipate higher levels of production in the next three months due to improved demand and expanded capacities.  The transport engineering cluster is also predicting higher output in the second quarter of 2012, compared to a quarter ago. The aerospace segment anticipates sustained demand for repair and servicing jobs for the Asia-Pacific region while the marine & offshore engineering segment foresees a higher level of offshore activity on the back of secured orders. 

Employment Forecast for April – June 2012 Employment prospects in the manufacturing sector for the second quarter of 2012 are positive, with all manufacturing clusters expecting to hire workers.  A net weighted balance of 8 percent of manufacturers plan to increase employment in the next 3 months, compared to a quarter ago. The transport engineering and general manufacturing industries clusters are the most optimistic about employment opportunities in the three months ahead. Factors Affecting Export Orders for April – June 2012 A weighted 45 percent of firms in the manufacturing sector reported no limiting factors that will affect their ability to obtain direct export orders in the second quarter of 2012.  The weighted 47 per cent of firms that indicated export constraints cited price competition from overseas competitors and economic and political conditions abroad as the most important limiting factors. Investment Plans for April 2012 – March 2013 A weighted 68 per cent of manufacturers plan to iAir Jordan VII 7 Shoes Share to： You May Like