RHB Bank has revised its full-year manufacturing growth forecast for Singapore to 9.2%, up from the previous 9.0%, according to its latest Global Economics and Market Strategy Report. This adjustment has led to an upgrade in the 2026 GDP growth forecast to 5.4% from 5.0%, reflecting strong year-to-date manufacturing growth and resilient external demand.
The report, attributed to Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, highlights the constructive outlook for Singapore’s manufacturing sector in 2026 and 2027. However, it cautions that the sustainability of industrial production (IP) momentum is dependent on the AI investment cycle and the broader global trade environment.
In September, Singapore’s IP rose by 3.4% year-on-year, a significant slowdown from the 15.4% increase recorded in August. This figure fell short of Bloomberg’s consensus expectation of a 7.1% year-on-year rise and marked the lowest reading since August 2025.
The revised projections underscore the importance of external factors in shaping Singapore’s economic landscape. As the global trade environment and technological investments evolve, these elements will play a crucial role in determining the future trajectory of Singapore’s manufacturing sector and overall economic growth.
