Expansion Picked Up From 0.1 to 50.9 From March This Year
Singapore manufacturing activity had an overall expansion in April. This is the fastest the sector has expanded since December 2018, thanks to an increase in employment, new exports, and new orders.
Imports, order backlog, and input prices were other areas that experienced an expansion. However, despite the good news regarding Singapore manufacturing activity, supply disruptions are still something manufacturers are worried about.
The Outlook Moving Forward
Despite the expansion, some experts remain worried that a new strain of the Covid-19 virus could pose a risk to the optimistic outlook. The second wave of infections that hit India after a new Covid-19 strain was discovered has put more safety precautions in place.
Singapore recently announced last month that long-term and short-term visitors and pass holders that have travelled to India in the last 14-days won’t be allowed to transit or enter the country. This setback could potentially delay the short-term recovery of the industry.
Singapore’s policymakers are working hard to come up with alternative measures and additional policy support.
The continued overall expansion of Singapore’s manufacturing activity, especially in electronics, is supportive of the country’s economic growth overall. The order backlog in the electronics sector expanded for the 10th consecutive month. This is indicative that additional resources could be required ahead to fulfil pending orders.
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