Singapore's manufacturing resilience & industrial evolution
From 2007 to 2022, manufacturing across Singapore almost doubled. Yet Interact Analysis has said that its manufacturing output has shrunk in 2023 and will continue to shrink in 2024 - before reviving in 2025, as the global semiconductor market recovers.
Singapore's resilience in manufacturing
Interact Analysis is a market intelligence authority for global technology research that focuses on industrial automation, robotics, warehouse automation and commercial vehicles.
Singapore’s overall economy suffered in 2023, due to a reduction in manufacturing output because of high inflation and high interest rates.
25% of Singapore’s GDP comes from industrial operations and the country is the 5th largest machine producer in the Asia Tri-Region, with total machinery output in 2022 of US$27bn. Singapore’s manufacturing sector is reliant on:
- Semiconductors & electronic components (43.7%)
- Chemicals & pharmaceuticals (18%)
“The city state is the 11th addition to the Asia Tri-Region in Interact Analysis’ Manufacturing Industry Outlook (MIO) Tracker and we have been conducting in-depth analysis of its production output with historic data spanning 15 years, its current situation and its future outlook,” said Jack Loughney, Data Analyst at Interact Analysis. “From 2025 to 2028, we forecast continued growth for Singapore’s manufacturing output. From declines in 2023/24, it will recover strongly to become one of the Asia Pacific region’s best performers, outstripping China’s manufacturing output growth between 2025 and 2028. However, Singapore will need to monitor its over-reliance on particular industries carefully and will remain inextricably linked to the fortunes of the global semiconductor industry for the foreseeable future.”
The Interact Analysis’ Manufacturing Industry Output (MIO) Tracker covers 45 countries, is published every quarter and offers an insight into 102 industries and sub-industries, presenting 15 years of historical data alongside a 5-year forecast and unparalleled analysis of the global machinery and manufacturing industry.
Singapore’s semiconductor struggle
Loughney shared his thoughts on Singapore’s manufacturing in 2025 exclusively with Manufacturing Digital.
"Following an extended period of rapid expansion, Singapore’s manufacturing economy is likely to struggle due to its specialisation in semiconductor industries, which have experienced a recent slump relative to their performance over the past few years.
“However, the nature of semiconductor manufacturing and semiconductor machinery manufacturing means that we expect the bounce back to be strong. This should, therefore, return Singapore to its rapid manufacturing growth trajectory by 2025."
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