SINGAPORE (The Straits Times/Asia News Network): Singapore’s manufacturing output shrank as a faster rate in November, down 3.2 per cent from a year earlier, according to data released by the Economic Development Board on Friday (Dec 23).

The figure was worse than the 1.1 per cent drop economists had forecast in a Bloomberg poll.

The fall in November extended the decline in October when manufacturing output contracted by a revised 0.9 per cent, snapping a year of growth.

Excluding volatile biomedical manufacturing, output fell 4.8 per cent year on year.

In November, the declines were led by electronics output which shrank a further 12.4 per cent from a year earlier on the back of softening demand.

Electronics accounts for 40 per cent of Singapore’s export-driven manufacturing sector and hence is key to economic growth.

Singapore’s semiconductor output, which accounts for 80 per cent of electronics manufacturing weighed on output, falling 14 per cent, reversing a 1.2 per cent gain in October.

Singapore supplies 11 per cent of the world’s semiconductors and 20 per cent of chipmaking equipment.

Output for the other electronic modules and components segment tumbled 21.6 per cent, while the infocomms and consumer electronics segment declined 12.1 per cent

Only computer peripherals and data storage within the electronics industry reversed declines to expand 9.3 per cent.

Pharmaceuticals, which declined 29.3 per cent in October reversed course to grow 14.1 per cent due to a different mix of active ingredients being produced.

As a whole, the notoriously volatile biomedical manufacturing sector saw output increase 6.9 per cent in November following a slump of 16.4 per cent in October.

Transport engineering was a bright spot as output grew 18.8 per cent in November, following on from 6.9 per cent growth in October.

The aerospace segment soared 26.2 per cent as there were more maintenance, repair and overhaul (MRO) jobs from commercial airlines as global air traffic picks up.

The marine and offshore engineering segment reversed the 1.8 per cent decline in October to grow 16.6 per cent in November, as there was more work done on offshore conversion projects as well as increased production of oil and gas field equipment.

In other segments, precision engineering recorded a 4.2 per cent increase in output in November

The machinery and systems segment expanded 10 per cent due to higher output of semiconductor foundry equipment.

The precision modules and components segment declined 7.6 per cent, weighed down by lower production of optical products, electronic connectors and bonding wire.

Chemicals output, however, fell 11.3 per cent in November 2022, as output of other chemicals and specialties segments declined.

The other chemicals segment fell due to lower production of fragrances while the specialties segment dropped on the back of lower production of mineral oil additives and industrial gases

Within chemicals, the petroleum segment grew 7.8 per cent because of higher demand for jet fuel as global air travel resumes, while output in the petrochemicals segment fell 17.5 per cent due to weak market demand and shutdowns of plants for maintenance.

On a seasonally adjusted month-on-month basis, manufacturing output decreased 1.2 per cent in November.