Singapore: Manufacturing PMI edges up in December
Latest reading: The Singapore Institute of Purchasing and Materials Management (SIPMM) Manufacturing PMI rose to 50.3 in December from 50.2 in November. As a result, the index moved further above the 50.0 no-change threshold and signaled a faster improvement in manufacturing-sector operating conditions compared to the previous month. Meanwhile, the electronics PMI rose to 50.9 in December (November: 50.6).
The latest PMI performance was primarily driven by stronger growth in new orders and factory output. Moreover, readings for employment, supplier deliveries and finished goods improved. In contrast, new exports and input purchases weakened.
Regarding business sentiment, firms remain optimistic, supported by strong demand in the electronics and semiconductor segment. However, manufacturers are facing capacity constraints and disruptions from Red Sea diversions, which could affect future business conditions.
Panelist insight: Commenting on the outlook, OCBC analysts stated:
“Looking forward, the critical outlook determinant is whether the pharmaceutical and semiconductor momentum sustains from 4Q25 into 1Q26. The global semiconductor market is still forecast to expand in 2026 due to strong demand for AI-related chips and should be primarily led by AI and data center infrastructure builds amid a healthy capex cycle. The global pharmaceutical industry is also tipped to be broadly resilient in 2026, with key late-stage drug launches scheduled.”