Singapore Business Confidence Improves in Q3

Business confidence in Singapore’s manufacturing sector rose to 11 in the fourth quarter of 2025 from 8 in the previous quarter. This marked the highest reading of the year, signaling growing optimism, with the electronics sector (+33) remaining the main driver, buoyed by sustained AI-related demand in the semiconductors segment. Transport engineering (+10) also maintained a positive outlook, supported by strong demand for aerospace maintenance, while biomedical manufacturing (+8) turned modestly optimistic on expectations of higher pharmaceutical exports. In contrast, chemicals (-17) recorded the weakest sentiment amid concerns over macroeconomic uncertainty, weak refining margins and oversupply. Looking ahead, output expectations for Q1 2026 were marginally positive (+6) with most clusters anticipating higher production, while employment levels are expected to remain broadly stable, with the majority of firms planning no significant changes to workforce size.

Business confidence in Singapore’s manufacturing sector rose to 8 in the third quarter of 2025, reflecting a cautious but notable upturn after a reading of 5 in the previous quarter. The electronics sector (+30) was the main driver, buoyed by sustained AI-related demand in the semiconductors segment. The biomedical sector (+11) also turned positive, supported by higher expected orders for pharmaceuticals products. Similarly, transport engineering (+13) remained optimistic, led by strong demand in aerospace maintenance, repair, and overhaul activities. In contrast, precision engineering (-35) posted the weakest outlook as firms reported delayed customer orders amid global uncertainty, while chemicals (-4) stayed subdued due to weak demand and maintenance shutdowns. Meanwhile, output expectations for Q4 turned positive (+7), with most clusters anticipating higher production, though employment levels are expected to stay broadly stable.

Business confidence in Singapore’s manufacturing sector came in at 5 in the second quarter of 2025, reflecting renewed optimism after a reading of -6 in the previous quarter. A notable improvement in sentiment was observed in the chemicals sector, which increased to -7 from -22 in the first quarter of 2025. The biomedical manufacturing sector also showed a less pessimistic outlook, improving to -4 from -8. Additionally, sentiment in precision engineering edged up to 4 from 2, while sentiment in the electronics industry turned positive, recovering to 17 from -9. In contrast, sentiment remained neutral in both the transport engineering and general manufacturing industries, following previous readings of 14 and 4, respectively.