Singapore's manufacturing sector is likely losing competitiveness: analyst

Even if global economic growth hits 3.4%.

According to Maybank Kim Eng, it continues to expect global economic growth to stabilise in 2013 at +3.4% after two consecutive years of slowdown (2012: +3.3%; 2011: +3.8%; 2010: +5.1%).

"With net external demand accounting for 30% of Singapore’s GDP (based on the last five year average), a relatively better world growth and trade will benefit the economy via gradual improvement in the export-oriented manufacturing and trade-related services," Maybank said in a report.

It added that however, the risk to this view is that Singapore’s export-based manufacturing maybe losing competitiveness amid steady currency appreciation and rising costs.