Singapore manufacturers remain optimistic about AI demand

Singapore (ANTARA) – Singapore’s manufacturing sector remains optimistic about its business prospects over the next six months, supported by sustained global demand related to artificial intelligence (AI), despite geopolitical uncertainty clouding the economic outlook, the Singapore Economic Development Board (EDB) said on Monday, Xinhua reported.

On a net weighted balance, 24 per cent of manufacturers maintained a positive business outlook for October 2026 to March 2027, compared with the third quarter of 2026, according to an EDB statement.

That figure comprised 29 per cent of companies expecting conditions to improve and a further 5 per cent anticipating a deterioration.

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

By contrast, the chemicals cluster was the most pessimistic, with petroleum companies concerned about uncertainty over crude oil feedstock supplies.

On a net weighted balance, 34 per cent of manufacturers expected production output to increase in the fourth quarter of 2026 compared with the previous quarter.

In addition, 72 per cent of companies expected employment levels to remain broadly unchanged, while 23 per cent anticipated difficulties securing export orders, citing foreign price competition and geopolitical and economic uncertainty, including the imposition of tariffs and inflationary pressures.