Output jumps 10.1 per cent year on year, offsetting petrochemical and biomedical weakness.

Singapore’s manufacturing output rebounded strongly in March, lifted by surging electronics and precision engineering production even as petrochemicals and biomedical output fell on softer demand and feedstock disruptions.

Manufacturing Output Rebounds After Lunar New Year Lull
According to Economic Development Board data released on April 27, overall manufacturing production rose 10.1 per cent year on year in March, reversing a slight dip in February that DBS economist Chua Han Teng linked to temporary shutdowns during the Chinese New Year period. On a seasonally adjusted month on month basis, output climbed 4.7 per cent, or 3.5 per cent excluding the biomedical cluster. All major clusters recorded year on year growth except biomedical manufacturing and chemicals, pointing to a broad based recovery with notable sectoral divergences.

Electronics Leads With AI Driven Demand
Electronics output jumped 30 per cent year on year, the strongest gain among all clusters. Growth was driven by infocomms and consumer electronics, as well as semiconductors, underpinned by robust demand related to artificial intelligence applications. Mr Chua said the trend for electronics remains positive, although he expects overall manufacturing performance to stay uneven after heightened volatility in the first quarter. The March manufacturing purchasing managers’ index already reflects rising input cost pressures and longer delivery lead times linked to the Middle East conflict.

Precision Engineering And General Manufacturing Strengthen
Precision engineering expanded 14 per cent, supported by higher output of optical instruments, electronic connectors, metal precision components and tools, dies, moulds, jigs and fixtures within the precision modules and components segment. General manufacturing grew 7.6 per cent, indicating resilience in a mix of domestic oriented and regional demand. These gains helped offset softness in more energy intensive and healthcare related activities, and suggest that supply chain investments and capital spending are continuing in spite of geopolitical uncertainty.

Biomedical And Chemicals Drag On Headline Numbers
Biomedical manufacturing output fell 14.3 per cent year on year, weighed down by weaker demand for medical devices and a different production mix of active pharmaceutical ingredients. The chemicals cluster contracted 16 per cent, largely because of lower petroleum and petrochemicals output tied to disruptions in feedstock supply. Feedstock refers to the raw materials that refineries and chemical plants rely on for continuous operations. UOB economist Jester Koh warned that headwinds in petrochemicals could intensify as refineries draw down limited inventories in the months ahead.

Outlook: Support From Chips, Risks From Costs And Supply
Economists expect Singapore’s manufacturing path to stay choppy, with AI related semiconductor and electronics demand providing a crucial buffer. Mr Koh noted that strong output from chips and related electronics should help overall manufacturing “continue to hold up” even if petrochemicals remain weak. At the same time, higher energy and shipping costs, longer delivery times and possible further feedstock disruptions tied to Middle East tensions pose risks to margins and production planning. For Indonesians and Singaporeans, the numbers highlight how closely regional factories are tied to global tech cycles and conflict driven commodity shocks.

March’s rebound in Singapore manufacturing underscores the strength of electronics and precision engineering as engines of growth while exposing vulnerabilities in petrochemicals and biomedical production to shifting demand and supply shocks. For Indonesians and Singaporeans, the data signal both the opportunities from AI driven industrial demand and the need to manage rising input costs, supply disruptions and sector specific risks as the regional economy navigates an uncertain geopolitical landscape.

Sources: Straits Times (2026) , VT Markets (2026)

Keywords: Manufacturing Output March 2026, Economic Development Board Data, DBS Economist Chua Han Teng, UOB Economist Jester Koh, Semiconductor Demand, Feedstock Supply Disruptions