RHB Bank’s latest Global Economics and Market Strategy Report, authored by Group Chief Economist Barnabas Gan, highlights a cautious outlook for Singapore’s manufacturing sector. The report, released on 26 June 2025, maintains a forecast for industrial production (IP) growth at 0.5%, citing a continuous slowdown in the sector. However, potential tariff de-escalations in the second half of 2025 could present upside risks to the full-year trade and manufacturing growth prognosis.
The report underscores uncertainties in tariff policies, particularly following a recent 90-day pause, as a significant factor affecting Singapore’s export-oriented sectors. These include chemicals, machinery and transport equipment, and manufacturing. Despite these challenges, May’s IP showed a 3.9% year-on-year increase, easing from a revised 5.6% rise in April but exceeding Bloomberg’s estimate of a 2.2% increase.
Gan’s analysis suggests that whilst the current outlook remains cautious, changes in global trade dynamics could alter the trajectory of Singapore’s manufacturing growth. The report serves as a critical resource for stakeholders in understanding the potential impacts of international trade policies on the local economy. As the year progresses, the manufacturing sector’s performance will be closely monitored for any shifts that could influence economic forecasts.
“`
