Manufacturing sector’s business outlook deteriorates

This as firms experience slow demand for manufactured goods.

Business outlook for the manufacturing industry is still negative due to low demand for products amidst the supply woes and inflationary pressures, the Economic Development Board (EDB) said.

According to EDB, a weighted 6% of manufacturers see improved outlook whilst a weighted 31% project a weaker business outlook. Overall, a net weighted balance of 25% of manufacturing companies sees a less favourable business situation in the first half of 2023 compared to the final quarter last year.

Within the manufacturing industry, the transport engineering cluster is the most optimistic with net weighted 21% of firms expecting an improved business environment in the next six months ending June 2023. 

The optimism was supported by aerospace segments, where higher demand for aircraft maintenance, repair and overhaul (MRO) jobs as cross-border air travel recovers.

“The marine and offshore engineering segment has a positive outlook, in view of the continued pick-up in global oil and gas activities and more ship-repairing as well as offshore conversion projects secured,” said EDB.

For the chemicals cluster, a net weighted balance of 5% of firms said business conditions will worsen for the first six months of 2023 compared to last year.

“Firms in the petroleum, specialties and other chemicals segments are concerned about weaker demand and higher operating costs, amidst macroeconomic and geopolitical uncertainties,” said EDB.

The general manufacturing cluster showed that a net weighted balance of 25% of firms anticipate weaker business prospects until June 2023 compared to the previous quarter.