Singapore Business Mood Stays Positive
2026-04-30 05:32
By
Joshua Ferrer
1 min. read
Business confidence in Singapore’s manufacturing sector stayed positive in the first quarter of 2026, with a net weighted balance rising to 17 from 11 in the previous quarter, despite ongoing geopolitical and economic uncertainty.
This marked the highest reading since Q2 2024, led by precision engineering (+51) and the electronics cluster (+42), supported by strong global AI-related investment and demand.
Transport engineering (+8) also maintained a modestly positive outlook, due to continued strength in aerospace maintenance.
In contrast, the chemicals sector (-53) remained the weakest, weighed by supply disruptions, higher feedstock costs, and margin pressures linked to Middle East tensions, while general manufacturing industries (-13) turned more cautious amid rising input costs.
Looking ahead, a net 20% of firms expect higher output in Q2 2026, led by electronics, precision engineering, and transport engineering, while most companies anticipate stable employment levels.