Singapore’s manufacturing sector is anticipated to experience a slowdown in the second half of 2025, according to RHB Bank’s latest Global Economics and Market Strategy Report. The report, authored by Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, forecasts a full-year growth of 2%, a decrease from the 4.8% year-on-year growth recorded in the first half of the year.
The report highlights several downside risks to the industrial production (IP) outlook for the latter half of the year. Despite the resilient performance of Singapore’s IP so far, with July’s figures showing a 7.1% year-on-year increase, surpassing both RHB’s in-house projection of 0.6% and Bloomberg’s consensus estimate of 0.9%, the momentum is expected to moderate.
Gan’s analysis suggests that whilst the year-to-date performance has been strong, the sector faces challenges that could dampen growth in the coming months. This anticipated slowdown is significant as it reflects broader economic trends and potential impacts on Singapore’s manufacturing sector.
The report serves as a cautionary note for stakeholders in the industry to prepare for potential fluctuations in production levels. As the year progresses, monitoring these developments will be crucial for businesses and policymakers alike.
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