Muted smartphone demand to dampen manufacturing activity this year

The sector will slow down to a 1.5% growth.

The strong gains in the manufacturing sector reflected in December would not likely to linger this year, analysts from RHB reckoned.

The research house noted that the manufacturing activity is set to slow down starting this year, undermined by softer smartphone and personal computer demand.

"We maintain our projection for the manufacturing sector to grow 1.5% this year, decelerating from +2.3% in 2016," RHB said.

To recall, Singapore's manufacturing output in December surged 21.3%, led by strong gains in the heavily-weighted semiconductors and pharmaceutical sectors.

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