Singapore Manufacturing Hits Six-Year High on AI Demand

The Singapore Institute of Purchasing and Materials Management reported broad-based gains across factory output, new exports, and employment. The electronics cluster, representing roughly one-third of the nation’s manufacturing, fueled this momentum with a PMI of 52.2, up from 51.9 in May. This upward trajectory suggests that the semiconductor supercycle remains firmly intact, according to SIPMM executive director Stephen Poh.

While the electronics sector thrives, regional instability continues to complicate logistics. Middle East tensions are causing persistent disruptions to global supply chains, resulting in slower supplier deliveries and extended lead times for local firms. Despite these bottlenecks, economists remain optimistic about the near-term outlook. DBS senior economist Chua Han Teng noted that the AI-driven technology cycle shows significant room to run, likely providing a continued cushion for Singapore’s trade performance throughout the coming months.