SINGAPORE (Jan 31): Singapore’s manufacturing sector expects business sentiment to be cautiously positive in the first half of 2024 (H1 2024), according to Singapore’s Economic Development Board (EDB).
EDB’s forecast is based on a recovery in the global semiconductor industry, providing some support for demand despite continuing geopolitical and economic headwinds.
“21% of manufacturers expect business conditions to improve, while 11% expect the economic outlook to worsen.
“Overall, 10% of the manufacturing net weighted balance expects business conditions to improve from January to June 2024 compared to the fourth quarter of 2023,” the EDB said in a statement on Wednesday. ” he said.
The manufacturing industry business forecast survey for the first quarter of 2024 (2024 Q1) was conducted by the Board of Directors from December 2023 to January 2024.
According to EDB, a government agency under Singapore’s Ministry of Trade and Industry, 89% of the 418 manufacturing establishments surveyed responded.
Overall, the EDB said that on a net weighted balance of manufacturers, 6.0% expect production to decline in the first quarter of 2024 compared to the fourth quarter of 2023 (Q4 2023). Stated. “All clusters except transportation engineering and chemicals predict lower production levels,” the report said.
Regarding employment forecasts for January-March 2024, EDB found that the majority (83%) of manufacturing companies expect employment levels in the first quarter of 2024 to remain at the same level as in the fourth quarter of 2023. He said there was. “Among manufacturing clusters, the biopharmaceutical manufacturing cluster has the most optimistic employment outlook, while the precision engineering cluster has the least optimistic,” the report said.
Regarding factors influencing export orders in January-March 2024, EDB reports that the majority of companies in the manufacturing sector (77%) have no constraining factors that will affect their ability to obtain export orders in the first quarter of 2024. He said he did.
According to the EDB, “Among companies expected to have difficulty securing export orders, the top two limiting factors cited are price competition with foreign competitors, geopolitical tensions and conflicts, and inflationary pressures.” “This is due to the political and economic situation overseas.”