Singapore: Industrial production declines in December – UOB

UOB Senior Economist Alvin Liew reports that Singapore's industrial production (IP) fell by 13.3% month-on-month in December 2025, aligning with market expectations. The decline was primarily driven by a significant drop in pharmaceuticals output, which decreased by 85.8%. Despite this, the overall IP showed an 8.3% year-on-year increase, with robust growth in other sectors like electronics and transport engineering.

December IP performance analysis

"Singapore’s industrial production (IP) recorded a back-to-back contraction in the last quarter of 2025, posting a -13.3% m/m sa decline in Dec (Nov revised: - 7.8%), in line with Bloomberg’s median forecast for a sequential pullback."

"On a m/m sa basis, the material drag in pharmaceuticals output for the second consecutive month in Dec was largely responsible for much of the year-end slowdown, coming in at -85.8% after -32.4% in Nov."

"That said, the contribution of electronics (on a y/y basis) remained very positive at 30.8% y/y in Dec, up from 18.1% in Nov, 26.9% in Oct, and the increase was led by the sub-category of semiconductors thanks to 'sustained and strong demand for AI-related products'."

"As for the remaining major segments of IP, transport engineering continued to provide support to overall manufacturing in Singapore (Dec: 19.9% y/y, Nov: 24.2% y/y) thanks to continued growth in both marine & offshore engineering (Dec: 8.5% y/y, Nov: 21.5%) and aerospace (Dec: 35.9% y/y, Nov: 33.8%)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)