Singapore Business Morale Remains Positive
2026-02-02 05:28
By
Joshua Ferrer
1 min. read
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.