<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR vAlign=top><TD></TD></TR><TR><TD vAlign=top width=452 colSpan=2>Published August 27, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Factory output here grows 12.4% in July
EDB cites production surge in biomedical cluster, due to jump in pharmaceuticals
By OH BOON PING
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>
SINGAPORE'S factory output expanded 12.4 per cent year-on-year last month, thanks to a production surge in the biomedical cluster, the latest figures show.
<TABLE border=0 cellSpacing=0 cellPadding=5 align=left><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox border=0 cellSpacing=0 cellPadding=0 width=144 align=left><TBODY><TR><TD vAlign=bottom>
</TD></TR><TR><TD bgColor=#fffff1><TABLE border=0 cellSpacing=0 cellPadding=0 width=124 align=center><TBODY><TR><TD vAlign=top>'The electronics cycle appears to be turning, with exports improving.'
</TD></TR><TR><TD vAlign=top>
</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>The Economic Development Board said that the month-on-month index was up 23 per cent on a seasonally adjusted basis.
For the first seven months of this year, however, output contracted 10.3 per cent compared with a year back.
Last month, the biomedical manufacturing cluster's output shot up 125.4 per cent year-on-year, due to a 139.2 per cent jump in the pharmaceuticals segment.
Also, the medical technology segment's output went up 14.2 per cent. The cumulative output of the segment from January to July rose 16.5 per cent from a year earlier.
Barclays economist Leong Wai Ho feels 'the prognosis for manufacturing in 2010 is good, supported in part by the inception of new plant capacity'.
'As we earlier highlighted, a key factor of support will come from the three bio-logics (vaccine) plants and Shell's US$3 billion petrochemical cracker, which are scheduled to open at end-2009.'
<SCRIPT language=javascript> <!-- // Check for Mac. var strAgent; var blnMac; strAgent = navigator.userAgent; strAgent.indexOf('Mac') > 0 ? blnMac = true:blnMac = false; if (blnMac == true) { document.write('
'); } //--> </SCRIPT><TABLE border=0 cellSpacing=0 cellPadding=4 width=300 align=right><TBODY><TR><TD vAlign=top align=middle>
<!-- AdSpace --><IFRAME height=250 marginHeight=0 src="http://ads.asia1.com.sg/html.ng/site=tbto&sec=btointhenews&cat1=bnews&cat2=btointhenewsart&size=300X250" frameBorder=0 width=300 marginWidth=0 scrolling=no bordercolor="#000000"><script language='JavaScript1.1' src='http://ads.asia1.com.sg/js.ng/Params.richmedia=yes&site=tbto&sec=btointhenews&cat1=bnews&cat2=btointhenewsart&size=300X250'></script><noscript>
</noscript></IFRAME><!-- /AdSpace-->
</TD></TR></TBODY></TABLE>
The decline in the chemicals cluster's output moderated to 2.3 per cent last month. Petrochemicals expanded 17.6 per cent due to maintenance shutdowns in July 2008 that resulted in a low base. Petroleum refineries' throughput contracted 13.2 per cent this July, due to low refining margins.
Overall, the chemicals cluster contracted 16.8 per cent year-to-date.
The electronics cluster reported a 5.6 per cent drop in output, despite the computer peripherals segment registering output growth of 44.5 per cent
This was offset by contraction in the output of other electronics segments, EDB said.
<TABLE border=0 cellSpacing=0 cellPadding=5 width=120 align=left><TBODY><TR><TD><TABLE border=0 cellSpacing=0 cellPadding=4 width=200 align=left><TBODY><TR bgColor=#4e6e78><TD height=8 colSpan=2>[FONT=Verdana, Arial, Helvetica, sans-serif]Related link: [/FONT]</TD></TR><TR bgColor=#d5e9f1><TD>
</TD><TD>[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=-2]Click here for EDB's media release[/SIZE][/FONT]</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>The output of general manufacturing industries contracted 4.8 per cent last month. This resulted from a 2.8 per cent output drop in food, beverages and tobacco and a 1.7 per cent dip in the miscellaneous industries segment. The printing segment declined 13.8 per cent.
Similarly, production in the transport engineering cluster shrank 10.2 per cent - a consequence of a 6.5 per cent contraction in the aerospace segment and a 9.8 per cent drop in the marine and offshore engineering sector.
The key precision engineering cluster saw output shrink 16.6 per cent last month, as machinery and systems output fell 15.5 per cent, while the precision modules and components segment shrank 17.4 per cent.
In a report, HSBC economist Robert Prior-Wandesforde said that the electronics cycle appears to be turning, with exports improving, while the electronics PMI is back above the break-even level of 50.
'This doesn't just bode well for Singapore, but most of the region where the tech sector is an important driver of growth,' he said.
'It also means that as and when pharmaceuticals drop back again, there is likely to be some support from elsewhere.'
Meanwhile, Barclays expects the Monetary Authority of Singapore to maintain a neutral stance at its October monetary policy meeting, as concerns over deflationary pressures abate.
'With MAS revising up the forecast of inflation from minus-0.5 per cent to zero and MTI revising up its growth forecast, the focus of monetary policy has clearly seen a slight tilt away from growth concerns,' Barclays said.
[/FONT]</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Factory output here grows 12.4% in July
EDB cites production surge in biomedical cluster, due to jump in pharmaceuticals
By OH BOON PING
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>SINGAPORE'S factory output expanded 12.4 per cent year-on-year last month, thanks to a production surge in the biomedical cluster, the latest figures show.
<TABLE border=0 cellSpacing=0 cellPadding=5 align=left><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox border=0 cellSpacing=0 cellPadding=0 width=144 align=left><TBODY><TR><TD vAlign=bottom>
</TD></TR><TR><TD vAlign=top>
- HSBC economist Robert Prior-Wandesforde
</TD></TR><TR><TD vAlign=top>
</TD></TR></TBODY></TABLE></TD></TR><TR><TD height=39>
For the first seven months of this year, however, output contracted 10.3 per cent compared with a year back.
Last month, the biomedical manufacturing cluster's output shot up 125.4 per cent year-on-year, due to a 139.2 per cent jump in the pharmaceuticals segment.
Also, the medical technology segment's output went up 14.2 per cent. The cumulative output of the segment from January to July rose 16.5 per cent from a year earlier.
Barclays economist Leong Wai Ho feels 'the prognosis for manufacturing in 2010 is good, supported in part by the inception of new plant capacity'.
'As we earlier highlighted, a key factor of support will come from the three bio-logics (vaccine) plants and Shell's US$3 billion petrochemical cracker, which are scheduled to open at end-2009.'
<SCRIPT language=javascript> <!-- // Check for Mac. var strAgent; var blnMac; strAgent = navigator.userAgent; strAgent.indexOf('Mac') > 0 ? blnMac = true:blnMac = false; if (blnMac == true) { document.write('
'); } //--> </SCRIPT><TABLE border=0 cellSpacing=0 cellPadding=4 width=300 align=right><TBODY><TR><TD vAlign=top align=middle>
<!-- AdSpace --><IFRAME height=250 marginHeight=0 src="http://ads.asia1.com.sg/html.ng/site=tbto&sec=btointhenews&cat1=bnews&cat2=btointhenewsart&size=300X250" frameBorder=0 width=300 marginWidth=0 scrolling=no bordercolor="#000000"><script language='JavaScript1.1' src='http://ads.asia1.com.sg/js.ng/Params.richmedia=yes&site=tbto&sec=btointhenews&cat1=bnews&cat2=btointhenewsart&size=300X250'></script><noscript>
The decline in the chemicals cluster's output moderated to 2.3 per cent last month. Petrochemicals expanded 17.6 per cent due to maintenance shutdowns in July 2008 that resulted in a low base. Petroleum refineries' throughput contracted 13.2 per cent this July, due to low refining margins.
Overall, the chemicals cluster contracted 16.8 per cent year-to-date.
The electronics cluster reported a 5.6 per cent drop in output, despite the computer peripherals segment registering output growth of 44.5 per cent
This was offset by contraction in the output of other electronics segments, EDB said.
<TABLE border=0 cellSpacing=0 cellPadding=5 width=120 align=left><TBODY><TR><TD><TABLE border=0 cellSpacing=0 cellPadding=4 width=200 align=left><TBODY><TR bgColor=#4e6e78><TD height=8 colSpan=2>[FONT=Verdana, Arial, Helvetica, sans-serif]Related link: [/FONT]</TD></TR><TR bgColor=#d5e9f1><TD>
Similarly, production in the transport engineering cluster shrank 10.2 per cent - a consequence of a 6.5 per cent contraction in the aerospace segment and a 9.8 per cent drop in the marine and offshore engineering sector.
The key precision engineering cluster saw output shrink 16.6 per cent last month, as machinery and systems output fell 15.5 per cent, while the precision modules and components segment shrank 17.4 per cent.
In a report, HSBC economist Robert Prior-Wandesforde said that the electronics cycle appears to be turning, with exports improving, while the electronics PMI is back above the break-even level of 50.
'This doesn't just bode well for Singapore, but most of the region where the tech sector is an important driver of growth,' he said.
'It also means that as and when pharmaceuticals drop back again, there is likely to be some support from elsewhere.'
Meanwhile, Barclays expects the Monetary Authority of Singapore to maintain a neutral stance at its October monetary policy meeting, as concerns over deflationary pressures abate.
'With MAS revising up the forecast of inflation from minus-0.5 per cent to zero and MTI revising up its growth forecast, the focus of monetary policy has clearly seen a slight tilt away from growth concerns,' Barclays said.
[/FONT]</TD></TR></TBODY></TABLE>
