(I) Total Manufacturing Performance

1. Manufacturing output in October 2008 declined 12.6% compared with the same month last year. On a seasonally adjusted month-on-month basis, output shrank 12.7% in October over September. Cumulative manufacturing output for the first ten months of the year dipped 2.9% compared with the same period last year. The three-month moving average year-on-year index recorded a decrease of 7.2% over the same period last year.

(II) Performance by cluster

2. The transport engineering cluster registered year-on-year growth of 10.9% in October. The marine & offshore engineering segment grew 14.8%, on the back of increased rig building and offshore conversion activities. The aerospace segment grew 11.3% in October 2008 due to ongoing repair jobs which were secured in prior months. Cumulative output of the cluster expanded 7.1% for the first ten months of the year, compared to the same period last year.

3. Output of the general manufacturing industries rose 2.9% in October compared with the same month last year. The food, beverages and tobacco industries grew 7.4%, whilst the printing segment shrank 4.5%. For the first ten months of the year, cumulative output of the general manufacturing industries increased by 2.5% compared to the same period in 2007.

4. The chemicals cluster shrank 5.8% in October compared with the same month last year. The petrochemicals segment shrank 8.9% as there were more maintenance shutdowns in October this year, as well as lower demand from customers. The petroleum segment dipped 0.8% due to lower refining margins. The specialties and other chemicals segments dropped 7.9% and 13.9% respectively, largely due to a drop in regional demand. For the first ten months of 2008, cumulative output of the chemicals cluster was 0.3% higher than the same period last year.

5. The precision engineering cluster contracted 13.1% year-on-year in October. Output of the machinery & systems segment decreased 14.3%, while the precision modules & components segment shrank 12.1%. Both segments declined on the back of weaker demand caused by the economic downturn. Cumulative output of the cluster was 5.0% lower in the first ten months of 2008 compared with the same period last year.

6. The electronics cluster shrank 14.0% in October, compared with the same month last year. The infocomms & consumer electronics segment decreased 56.6% as it continued to be affected by the relocation of mobile device production overseas, as announced previously. The semiconductors, data storage and computer peripherals segments also declined 9.9%, 10.6% and 2.2% respectively, due to decreased global demand. Cumulative output of the electronics cluster for the first ten months of 2008 fell 2.1% compared to the same period last year.

7. The biomedical manufacturing cluster contracted 30.6% in October compared to the same month last year. The drop was largely attributed to the pharmaceutical segment, which recorded a 31.2% decrease due to a different mix of active pharmaceutical ingredients. The medical technology segment shrank 22.6% as a result of lower shipment overseas. For the first ten months of 2008, cumulative output of the biomedical manufacturing cluster was 11.5% lower than in the same period last year.

8. The next monthly manufacturing performance media release will be issued on 26th December 2008.

COMMUNICATIONS
GLOBAL OPERATIONS DIVISION

Editors’ Note: Updates on Monthly Manufacturing Output are available on http://www.sprinter.gov.sg and http://www.sedb.com

For media enquiries, please contact Mr Alex Tan (Tel: 6832 6284 / Handphone: 9841 0392 / Email: alex_tan@edb.gov.sg)

For further information, please contact Miss Esther Foo (Tel: 6832 6298 / Handphone: 9781 9402 / Email: esther_foo@edb.gov.sg.