RHB Bank has announced it is maintaining its full-year industrial production (IP) forecast for Singapore at 9% for 2026. This projection is supported by the ongoing global technology upcycle and robust demand for artificial intelligence (AI), which are expected to bolster the electronics and precision engineering sectors. The bank’s Group Chief Economist and Head of Market Research, Barnabas Gan, emphasised the importance of AI-driven demand and the external trade environment in sustaining this growth.
In July, Singapore’s IP grew by 6.8% year-on-year, with a month-on-month seasonally adjusted increase of 2.3%. This marks a slight decrease from June’s 7.5% year-on-year growth but aligns with Bloomberg’s estimates. The report highlights the critical role of the electronics and precision engineering sectors in driving manufacturing growth for the remainder of the year.
Gan noted that whilst the current performance is promising, its durability hinges on the persistence of AI demand and favourable trade conditions. The report underscores the significance of these factors in shaping Singapore’s manufacturing landscape.
As the global technology sector continues to evolve, RHB Bank’s forecast reflects confidence in Singapore’s ability to capitalise on these trends. The bank’s analysis provides valuable insights into the potential trajectory of the country’s industrial production for the rest of the year.
