FX.co ★ Singapore Business Mood Remains Positive

Business confidence in Singapore’s manufacturing sector remained positive in the second quarter of 2026, with a net weighted balance of 12%. This was lower than the 17% recorded in the previous survey but still supported by strong global AI-related demand, which helped offset elevated geopolitical and economic uncertainty. Precision engineering (+55) was the most optimistic cluster, buoyed by robust demand for semiconductor-related equipment, while electronics (+19) also remained upbeat on continued strength in AI-driven semiconductor demand. By contrast, chemicals (-25) was the weakest segment, weighed down by feedstock supply disruptions linked to tensions in the Middle East, and general manufacturing industries (-13) stayed cautious amid rising material, fuel, and freight costs. Looking ahead, a net 26% of firms expect output to increase in the third quarter, led by precision engineering, electronics, and transport engineering, while most manufacturers anticipate stable employment levels.