Why the uptick in manufacturing is the best news for Singapore's economy this year

Industrial production up by 6.2%.

According to Deloitte University Press Asia Pacific Economic Outlook, the uptick in manufacturing is arguably the best news for Singapore’s economy. In December 2013 industrial production grew 6.2 percent year over year, continuing from November’s strong 6.6 percent rise.

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After a weak first half, the critical electronics segment picked up pace later in 2013: It grew 22.2 percent in December, thereby pushing overall 2013 growth to 3.5 percent. There was positive news in chemicals as well, and although the biomedical segment was in negative territory, it is expected to correct course this year.

In fact, over 2014–15 external demand for manufacturing products is expected to consolidate as the economic recovery in the United States and Europe gathers pace. This is evident from recent export data as well. In December 2013 domestic exports (excluding re-exports) grew 5.8 percent, reversing course from a 6.0 percent decline in November.

The story for non-oil domestic exports was even better, with a 6.0 percent rise in December relative to November’s 8.9 percent decline.