PUBLISHED ONApril 30, 2026 7:18 AMBYSean LerThe manufacturing sector remains upbeat about the next six months, despite ongoing geopolitical and economic uncertainty, including those arising from the ongoing Middle East conflict, a survey has found.
Four hundred and three manufacturing firms were polled by the Economic Development Board (EDB) between March and April, and asked to indicate their expectation of general business conditions and other indicators such as output and employment.
According to the Business Expectations of the Manufacturing Sector survey released by EDB on Thursday (April 30), a weighted 17 per cent of manufacturing firms are optimistic about business conditions from April to September.
This was up from 11 per cent in the previous poll — released on Feb 2 — covering the January to June period.
Among them, precision engineering companies and electronics firms were most upbeat — with a weighted balance of 51 and 42 per cent respectively — on the back of sustained and strong artificial intelligence (AI)-related investment and demand.
The chemicals cluster is most pessimistic, with 53 per cent of companies expecting the business environment to worsen further.
Those in petrochemicals and petroleum segments also expect disruption in feedstock supply from the Middle East to result in higher costs and weaker margins.
To a lesser extent, concerns over tariffs and the Middle East situation also cast a guarded forecast for biomedical manufacturing and general manufacturing firms.
A net weighted balance of 20 per cent of manufacturers are expecting their output to increase in the second quarter of 2026, up from the 6 per cent forecast for the first quarter.
Among businesses in the manufacturing sector, those in the precision engineering, electronics and transport engineering clusters are projecting an increase in production, while the other clusters are projecting a decline.
Overall, a weighted 25 per cent of firms anticipate challenges in securing export orders in the second quarter of 2026, with the oft cited factors of price competition from overseas competitors and political or economic conditions overseas.
Additionally, a weighted average of 78 per cent of manufacturing businesses expect their employment level for the second quarter of 2026 to remain similar to the last quarter.
With the exception of the chemicals and biomedical manufacturing clusters, all other clusters expect to hire more workers.
Over the next 12 months, 66 per cent of firms intend to invest in plants and machineries, with replacement being the top reason, followed by installation of new production technology and expansion.
[[nid:734826]]
