RHB Bank’s latest Global Economics and Market Strategy Report, authored by Group Chief Economist Barnabas Gan, maintains a cautious stance on Singapore’s industrial production (IP) growth, projecting a 4% increase for 2026. The report highlights potential risks from global geopolitical tensions, particularly in the Middle East, which could impact Singapore’s economic growth and trade in the first half of 2026.
The report notes that Singapore’s IP experienced a slight decline of 0.1% year-on-year in February, following a significant 12.9% surge in January. This performance defied Bloomberg’s forecast of a 14.1% year-on-year increase. The month-on-month seasonally adjusted figure also fell by 7.2%.
Gan emphasises the importance of monitoring external risks, including ongoing tariff-related challenges, which could further influence Singapore’s economic trajectory. Despite these concerns, the report maintains a GDP growth forecast of 3% for the year, alongside a similar projection for non-oil domestic exports (NODX).
The report serves as a reminder of the volatile nature of global markets and the need for strategic caution in economic planning. As geopolitical tensions continue to evolve, Singapore’s economic outlook remains subject to change, with potential implications for trade and industrial production.
