30.04.202605:32:45UTC+00Singapore Business Mood Stays Positive

Business confidence in Singapore’s manufacturing sector remained positive in the first quarter of 2026, with the net weighted balance rising to 17 from 11 in the previous quarter, despite ongoing geopolitical and economic uncertainty. This was the strongest reading since Q2 2024, driven primarily by precision engineering (+51) and the electronics cluster (+42), underpinned by robust global investment and demand related to artificial intelligence. Transport engineering (+8) also sustained a modestly positive outlook, supported by continued strength in aerospace maintenance. In contrast, the chemicals sector (-53) remained the weakest performer, weighed down by supply disruptions, higher feedstock costs, and margin pressures associated with tensions in the Middle East, while general manufacturing industries (-13) turned more cautious amid rising input costs. Looking ahead, a net 20% of firms expect higher output in Q2 2026, led by electronics, precision engineering, and transport engineering, while most companies anticipate that employment levels will remain stable.