Singapore’s industrial sector is experiencing a significant uptick in trading activity in 2025, driven by global economic shifts and technological innovation. The sector, which comprises one-fifth of the 100 most traded stocks, has seen more than a third of these stocks experience a daily trading turnover surge of over 50% compared to 2024 levels. This highlights a growing investor interest in the sector.
The transformation in industrial value chains is largely attributed to changing global trade policies and rapid technological advancements. In Singapore, the Industrials sector has seen strong institutional inflows, second only to Telecommunications, indicating renewed investor focus. ST Engineering, a key player in this sector, has emerged as the strongest performing stock on the Straits Times Index (STI) in 2025, ranking third in net institutional inflows. The company attributes its success to a diversified global customer base and investments in advanced technologies such as AI, robotics, and quantum computing.
The shift in global manufacturing from China to Southeast Asia and India is also reshaping regional trade routes and boosting demand for container shipping. This realignment is supported by increased foreign direct investment in ASEAN’s manufacturing sector, enhancing employment and modern training requirements.
Technological advancements are further accelerating Industry 4.0. Notable developments include Pan-United Concrete’s AI-powered logistics system, ISOTeam’s autonomous drones, and ISDN Holdings’ robotic building solutions. These innovations are not only reshaping industrial operations but also setting the stage for the next chapter of regional industrial growth.
As the Industrials sector continues to evolve, it remains a key pillar of economic stability in Singapore, supported by sustained public infrastructure investments. The ongoing transformation presents significant opportunities for growth and innovation in the region.
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