RHB Bank has announced that it is maintaining its full-year industrial production (IP) projection for Singapore at 4.0% for 2026. This decision is supported by a strong global and domestic economic environment, according to Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank. The projection aligns with the non-oil domestic exports (NODX) and gross domestic product (GDP) growth forecasts of 3.0%, with potential upside risks.
Singapore’s IP experienced a significant surge of 16.6% year-on-year in January, marking an increase from the revised 10.9% growth in December. This performance surpassed both Bloomberg’s forecast of 11.6% and RHB’s own projection of 9.5% year-on-year growth. The robust performance in January highlights the resilience of Singapore’s manufacturing sector amidst a challenging global landscape.
Despite the optimistic outlook, RHB remains cautious about external risks, particularly the uncertainties surrounding recent US tariff developments. These could potentially impact Singapore’s manufacturing and trade activities throughout the year. The report suggests that whilst the current economic indicators are favourable, vigilance is necessary to navigate the evolving global trade environment.
The report underscores the importance of monitoring external factors that could influence Singapore’s economic trajectory. As the year progresses, the interplay between global economic conditions and domestic performance will be crucial in determining the actual outcomes for Singapore’s manufacturing sector.
