Singapore's manufacturing sector experiences strong growth, with electronics leading the way

Singapore’s manufacturing sector performed well at the start of 2026. According to data released by the Singapore Economic Development Board (EDB) on February 26, manufacturing output in January grew by 16.6% year-on-year, surpassing December’s 10.9%, marking the fifth consecutive month of expansion.

Excluding the volatile biomedical manufacturing sector, the manufacturing output increased by 24.1% year-on-year; seasonally adjusted, the overall month-on-month growth was 5.3%, and excluding biomedical, the month-on-month growth was even higher at 10.8%.

Electronics Sector Performs Outstandingly

The electronics sector was the biggest highlight, with January output soaring 44% year-on-year, a significant increase from the previous month’s 19.6%. The growth was mainly driven by electronic modules, components, and semiconductors, with semiconductor demand boosted by the rapid development of artificial intelligence (AI) applications.

Other Industries Generally Grow

Apart from general manufacturing and biomedical manufacturing, all other industry clusters expanded:

• Transportation engineering grew by 25.2%, with the aerospace segment benefiting from increased aircraft parts production and higher maintenance, repair, and overhaul (MRO) demand.
• Precision engineering increased by 13.2%, mainly driven by demand for semiconductor equipment and related modules and systems.

Biomedical Manufacturing Declines Significantly

Biomedical manufacturing output fell by 33.1% year-on-year, mainly due to reduced production of biopharmaceuticals and active pharmaceutical ingredients, while weak demand for medical devices also dragged down overall performance.