Singapore’s industrial sector demonstrated resilience in Q2 2025, with the economy expanding by 4.3% year-on-year and 1.4% quarter-on-quarter, according to the Ministry of Trade and Industry. The manufacturing sector, a key driver, grew by 5.5% year-on-year, despite ongoing global trade tensions and economic uncertainties.
The Singapore Economic Development Board reported a 3.9% year-on-year increase in manufacturing output in May 2025, with all clusters except general manufacturing showing growth. Transport engineering and precision engineering led with double-digit growths of 25.6% and 10.3%, respectively. However, the general business outlook turned negative, dropping 22 percentage points to a negative 6% due to global trade tensions.
The industrial property market also showed strength, with transaction activity increasing significantly. The total sales value rose by 185.5% quarter-on-quarter to $1.6b (S$2.2b), supported by key transactions such as the sale of a data centre at 9 Tai Seng Drive for $330.5m (S$455.2m). Leasing activity increased by 11.7% quarter-on-quarter, with 3,360 rental transactions valued at $22m (S$30.2m).
Calvin Yeo, Head of Occupier Strategy and Solutions at Knight Frank Singapore, noted, “Singapore’s stability and brand as a strategic business hub is expected to continue as a bulwark for firms looking for a safe harbour to set up or expand.”
Looking ahead, Singapore’s industrial sector is expected to remain stable, although global manufacturing challenges persist. Industrial prices are projected to see moderate gains of 3% to 5% for the year, driven by strong investor interest.
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