RHB Bank’s latest Global Economics and Market Strategy Report, authored by Barnabas Gan, Group Chief Economist and Head of Market Research, suggests a promising outlook for Singapore’s industrial production (IP) growth in 2025. The report highlights a potential upside risk to the initial full-year IP growth forecast of 0.5%, driven by the de-escalation of tariffs.
April’s industrial production in Singapore rose by 5.9% year-on-year, surpassing Bloomberg’s estimate of 2.5% and following a revised 6.8% growth in March. This increase is attributed to a temporary boost in exports due to front-loading during a 90-day tariff pause. However, Gan notes that ongoing trade uncertainties and weaker global demand may continue to challenge the manufacturing sector.
The report underscores the importance of monitoring trade developments, as they play a crucial role in shaping Singapore’s economic landscape. With the easing of tariffs, there is optimism for improved industrial performance, although caution remains due to external economic pressures.
Looking ahead, RHB Bank’s analysis suggests that whilst the current environment presents opportunities for growth, the manufacturing sector must navigate the complexities of global trade dynamics. The potential for increased industrial production could bolster Singapore’s economy, provided that trade tensions continue to ease.
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