S’pore factory output down 7.8% in Aug under US tariff cloud

Pharma and electronics production shrink as overseas shipments continue to weaken

- Benjamin Lim Correspondent

Singapore’s manufacturing output fell in August, snapping 13 straight months of growth, as key pharmaceutical and electronics production shrank.

Analysts said export-driven manufacturers here will struggle as overseas shipments continue to weaken with higher US tariffs on more than 90 countries taking effect on Aug 7.

In his latest salvo, US President Donald Trump on Sept 25 announced a 100 per cent tariff on branded or patented pharmaceutical imports from Oct 1. He is also expected to announce tariffs on semiconductors.

Singapore’s total factory output dropped 7.8 per cent in August from a year ago, reversing from a revised 7.7 per cent rise in July, according to data released by the Economic Development Board. This was far worse than the 1.9 per cent decline forecast by economists in a Bloomberg poll.

Excluding the more volatile biomedical industry, production fell 2.9 per cent.

On a seasonally adjusted month-on-month basis, manufacturing output slid 9.7 per cent. Excluding biomedical manufacturing, it slipped 3.5 per cent.

Biomedical manufacturing was the hardest hit, recording a 37.3 per cent year-on-year contraction.

The pharmaceuticals segment in particular saw a 59.3 per cent drop from a high base in 2024, due to a different mix of pharmaceutical ingredients being produced.

On the other hand, the medical technology segment grew 5.3 per cent on the back of sustained export demand for medical devices.