Manufacturing Sector Is Leading Singapore’s Recovery Through the Pandemic
Singapore’s manufacturing activity is leading the way and on track to record another expansion for the 12th straight month in June.
The manufacturing sector has remained strong and led the charge of the country’s recovery amid the Covid-19 pandemic. In the coming months, experts are forecasting that this sector will remain the main driver for the country’s economic growth.
Sector Records Higher Than Expected Increase
Singapore’s manufacturing activity recorded a 0.1 increase, coming in at 50.8 on the Purchasing Manager’s Index (PMI). This was higher than the initial forecast that was predicted for it. Originally, the sector was only expected to expand by 50.7.
As for the electronics sector, the backlog also enjoyed 12 straight months of expansion. According to the Singapore Institute of Purchasing and Materials Management (SPIMM), the higher growth overall was attributed to faster factory output and expansion rates as well as employment.
Overall, the first half of the year ended on a positive note for the manufacturing economy. The employment index also recorded an expansion for eight straight months.
Concerns Remain Over Different Covid-19 Strains
Despite the good news for Singapore’s manufacturing activity, there is still concern about the different strains of Covid-19. Manufacturers remain concerned that these new strains could disrupt the supply chains and restrict the economy’s activities. There is also the risk of higher inflation that could spill over into consumer prices.
Many of the regional PMI readings for manufacturing have experienced a pullback because of the rising input prices and cost of raw materials. There is also the factor of increased Covid-19 measures to fight higher infections that have contributed to the pullback.
Asia might possibly face a hindrance in its manufacturing sector for the first half of the year with all the uncertainty around the pandemic.
Launch Your Manufacturing Business With 3E Accounting
There may be a lot of uncertainty about the future because of the pandemic, but there is one thing you can be sure of. 3E Accounting will always have your back when you start a Singapore company.
Fear and uncertainty don’t have to stop you from realizing your business dreams. Especially when you have the right team of professionals working with you. Put your future in the hands of the people who know how to take care of it best. For more information about our company incorporation services, contact us today.
