26 JULY 2017: Economy and SME Financing News
Continuing its growth trajectory, the manufacturing sector in Singapore was reported by the Singapore Economic Development Board to have grown for the 11th consecutive month in June – recording a year-on-year growth of 13.1%, the highest rate this year. It was significantly better than the 8.5% growth forecasted by analysts in a Bloomberg poll and also more than three times the 4.4% growth in May. If the relatively volatile biomedical manufacturing was excluded, output still grew by a strong 11.9%. On a month-on-month basis, the manufacturing output was 9.7% greater, beating the 3.6% forecasted by analysts. If the biomedical manufacturing sector was excluded, the output showed a growth of 4%.
The best performer was the electronics cluster, where it leapt 25.5% in June, on a year-on-year basis. This was attributed to the semiconductors segment, which grew 37.4%. While the media reported that some analysts were concerned about the weakening rally in electronics (as seen in the leading indicators like billings and shipments for semiconductors), it still seemed rather buoyant with good capacity utilisation rates and output growth.
Next best performer was the biomedical manufacturing sector at 18.3% in June. This was after negative growth for May and April where it fell 25% and 24% respectively. The pharmaceuticals output grew 21.4% due to greater production while the medical technology segment grew 8.5% as a result of higher export demand for such devices.
The chemicals cluster grew 9.4% year-on-year in June, with all segments registering output growth. The precision engineering cluster grew 5.3% year-on-year in June, partly attributed to higher production of tools, moulds, dies, industrial rubber products, metal precision parts, etc.
The transport engineering cluster grew 4.6% year-on-year in June, with the aerospace and land transport segments growing 24.9% and 23.9% respectively. The aerospace segment had reported more activities in repair and maintenance from commercial airlines while the land transport segment experienced more motor vehicle parts production. In contrast, the marine & offshore engineering segment fell 11.8% in June on a year-on-year basis, continuing its trend of negative growth.
The only cluster to show negative growth was general manufacturing, where it recorded a 5.3% fall in June on a year-on-year basis, with all segments like F&B and printing falling in their outputs.
The full report can be found at the website of Singapore Economic Development Board.
Perhaps your SME business is enjoying the exports growth uplift as highlighted in this article and gearing up for more orders in the second half of the year. Or perhaps your small business is facing a more challenging period and need to manage the cash flow finances more carefully. Maybe you are now considering what SME financing options might be suited for your business plans. Possible solutions can include working capital loan / financing and invoice financing or factoring. We will be happy to discuss and come up with the optimal plan for your business.
At IFS Capital Limited, we understand that all businesses are different in their needs and characteristics. That is why we are happy to consider SME financing options that meet your unique needs.
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