adminSINGAPORE: The manufacturing sector remains optimistic but cautious about business sentiment in the first half of 2026, despite pressures on the global economy and trade, according to a latest survey by the Economic Development Board of Singapore (EDB).
In a statement today, EDB said the study found that 63 percent of manufacturers expected business conditions to remain generally stable for the period January to June 2026, 24 percent projected better business prospects, while 13 percent expected weaker business prospects.
Meanwhile, a net balance of 11 percent of manufacturing firms expect better business prospects in the first half of 2026 compared to the fourth quarter of 2025.
“In the manufacturing sector, the electronics cluster is the most optimistic, with the remaining 33 percent of firms projecting positive business prospects in the next six months to June 2026.
“This positive sentiment was largely driven by the semiconductor segment, supported by continued artificial intelligence (AI)-related demand, despite concerns over trade tensions and US tariffs,” he said.
The business outlook survey for the manufacturing sector for the first half of 2026 was conducted between December 2025 and January 2026, with 83 percent of the 406 manufacturing establishments surveyed providing responses.
Meanwhile, EDB said 80 percent of firms in the manufacturing sector expect employment levels in the first quarter of 2026 to remain the same as in the fourth quarter of 2025.
Among manufacturing clusters, the electronics, transportation engineering and precision engineering clusters plan to hire more workers, while other clusters expect their workforce to remain the same or decrease.
“Amid ongoing economic pressures, the remaining 22 percent of firms in the manufacturing sector expect challenges in securing export orders in the first quarter of 2026.
“The two main limiting factors are price competition from overseas competitors as well as political or economic conditions abroad, including geopolitical tensions and tariff-related uncertainties,” he said.
— BERNAMA
