Singapore, 27 December 2025 — Singapore’s manufacturing performance has shown a notable rebound in 2025, with industrial production demonstrating robust growth after earlier weakness and positioning the sector for a cautiously optimistic 2026 outlook. Recent official data and economic indicators point to a strong surge in factory output, while global macro forces and trade tensions continue to shape the operating environment for manufacturers.
Manufacturing output surges in late 2025
The October 2025 manufacturing performance report from the Economic Development Board (EDB) revealed that Singapore’s manufacturing output jumped 29.1% year-on-year in October, marking one of the fastest year-over-year increases in recent history. Excluding the more volatile biomedical manufacturing component, output still rose 15.8%, reflecting broad gains across multiple industrial clusters. On a seasonally adjusted month-on-month basis, total output increased 11.5% in October, signalling strong momentum into the final months of 2025.
In September 2025, a prior output print showed a strong rebound as well, with manufacturing production up 16.1% year-on-year from a prior contraction in August. The rebound was driven by strong electronics and biomedical manufacturing activities, which helped lift the industry after earlier fluctuations.
November data also indicated continued industrial expansion, with production growth remaining positive at around 14.3% year-on-year, though at a slightly slower pace than October.
What’s driving performance
High-value segments lead the gains
Electronics manufacturing, an anchor of Singapore’s industrial base—has seen particular strength, bolstered by demand for semiconductors and related components. Biomedical manufacturing, which has been a major growth engine in recent years, also delivered strong contributions to output recovery. These high-value segments have helped offset more moderate performance in other parts of the sector.
Singapore’s position as a global node in the semiconductor supply chain and its strong R&D ecosystem continue to support advanced manufacturing activities. One in every 10 chips produced globally is attributed to facilities in Singapore, underlining the city-state’s strategic importance in the industry.
Sector activity and PMI trends
The Singapore manufacturing PMI has provided additional context on sector dynamics. As of November 2025, the PMI edged up to around 50.20 points, a level that generally signals expansion in manufacturing activity on a monthly basis. Models project the PMI to trend around similar levels into 2026, suggesting continued, albeit moderate, industrial resilience.
Broader economic context
Manufacturing has contributed to Singapore’s overall economic resilience in 2025. Growth in the sector helped sustain national GDP performance even as global headwinds, including US tariffs and slower export demand, weighed on broader economic activity. In the third quarter of 2025, Singapore’s GDP expanded by about 2.9–4.2% year-on-year, a range that reflects strong contributions from manufacturing, wholesale trade, and finance sectors.
Economists have also revised growth forecasts for 2025 upward in light of stronger-than-expected industrial output and export performance, further reinforcing manufacturing’s role in the recovery.
Trends shaping 2026
Analysts and official projections suggest that manufacturing output growth is expected to moderate into 2026 compared with the heightened gains seen in late 2025, but remain positive as global demand for electronics and biomedical products persists. Forecast models indicate industrial production could continue to trend above long-term averages, supporting overall economic expansion.
Policy support for innovation, coupled with ongoing investment in high-tech manufacturing capabilities, is likely to underpin the sector’s performance over the medium term. Singapore’s strategic push into advanced technologies such as semiconductor fabrication and precision engineering may help sustain steady, quality growth even amid external challenges.
Singapore’s manufacturing performance in 2025 showcases a strong rebound after earlier contractionary pressures, with October’s surge and solid gains across key industrial clusters pointing to renewed momentum. While the pace of expansion may soften in 2026 compared with late-2025 highs, the outlook remains constructive as the sector adapts to global demand shifts and continues to capitalise on high-value, innovation-led manufacturing strengths. Manufacturers, policymakers, and investors alike will be watching how demand patterns, supply chain adjustments, and digital transformation shape performance in the year ahead.