Singapore manufacturers remain optimistic on AI demand despite global uncertainty-Xinhua - 新华网

SINGAPORE, Nov. 2 (Xinhua) -- Singapore's manufacturing sector remains optimistic about business prospects for the next six months, supported by sustained global demand related to artificial intelligence (AI), despite geopolitical uncertainties clouding the economic outlook, the Singapore Economic Development Board (EDB) said on Monday.

A net weighted balance of 24 percent of manufacturers maintain a positive business outlook between October 2026 and March 2027 compared with the third quarter of 2026, the EDB said in a statement. This comprises 29 percent of firms expecting better conditions and 5 percent anticipating a deterioration.

The precision engineering cluster is the most optimistic, supported by expectations of continued growth in global AI-related investment. The electronics cluster also expects strong conditions, driven by robust orders for semiconductors used in AI applications.

In contrast, the chemicals cluster is the most pessimistic, with petroleum firms concerned about uncertainty over crude oil feedstock supplies.

A net weighted balance of 34 percent of manufacturers expect output to increase in the fourth quarter of 2026 from the previous quarter.

Meanwhile, 72 percent of firms expect employment levels to remain broadly unchanged, while 23 percent anticipate difficulties securing export orders, citing overseas price competition and geopolitical and economic uncertainties, including tariffs and inflationary pressures. ■