Singapore’s September manufacturing growth slows sharply as biomedical output contracts despite AI demand.
Singapore’s manufacturing sector remained in growth territory in September, but momentum weakened considerably from the previous month as sharp declines in pharmaceutical and chemical production offset stronger performances in precision engineering and other industries.
Growth Drops From 15.4% to 3.4%
Singapore’s factory output increased 3.4% year on year in September, sharply lower than the 15.4% expansion recorded in August, according to Economic Development Board data released on October 26. The result also fell below economists’ forecasts. On a seasonally adjusted monthly basis, manufacturing output declined 3.9%. Excluding biomedical manufacturing, year-on-year output increased 9%.
Pharmaceuticals Weigh Heavily on Production
Biomedical manufacturing recorded the steepest contraction, falling 32.8% year on year. Pharmaceutical output plunged 65.9%, which the EDB attributed to a different mix of active pharmaceutical ingredients being produced. Medical technology production also declined 1.7% amid softer export demand.
AI Demand Continues Supporting Electronics
Electronics output increased 5.7%, although growth moderated substantially from 28.3% in August. Robust artificial intelligence-related demand continued supporting the sector, with infocommunications and consumer electronics rising 29% and computer peripherals and data storage climbing 21.3%. Semiconductor production increased by a comparatively modest 1.9%.
Precision Engineering Leads Growth
Precision engineering recorded September’s strongest cluster performance, expanding 31%. Machinery and systems output rose 34.8% on higher production of semiconductor equipment, while precision modules and components increased 12.4%. Transport engineering also grew 10.6%, supported by land transport and aerospace production, although marine and offshore engineering contracted 6.3%.
Chemicals Contract as General Manufacturing Grows
Singapore’s chemicals cluster declined 4.6%, with petrochemicals falling 24.3% amid softer demand and feedstock supply disruptions. Other chemicals contracted 19.4%. In contrast, general manufacturing expanded 4%, supported by an 11% increase in food, beverages and tobacco production and 7.6% growth in printing.
September’s data show that Singapore’s manufacturing sector continued expanding year on year, but growth became considerably more uneven as biomedical manufacturing and chemicals weakened while precision engineering and AI-related electronics remained supportive. For Singaporeans, the figures offer a clearer picture of where industrial growth is strengthening or slowing. For Indonesians following economic developments in neighboring Singapore, the results provide an updated view of manufacturing conditions in one of Southeast Asia’s major economies.
Sources: Straits Times (2026) , Business Times SG (2026)
Keywords: Singapore Manufacturing Output, Factory Output Growth, Pharmaceutical Production, Electronics Manufacturing, Precision Engineering, Singapore Economy
