Against this backdrop, Singapore’s manufacturing and trade-related sectors are expected to see a gradual pickup in growth in tandem with the turnaround in global electronics demand, said MTI.
In particular, the electronics and precision engineering clusters within the manufacturing sector are projected to rebound, especially given that recovery in semiconductor sales globally and domestically has been stronger than expected, it said.
Meanwhile, continued recovery in air travel and tourism demand will support growth in Singapore’s tourism- and aviation-related sectors, including aerospace, air transport and accommodation, as well as consumer-facing sectors such as retail trade and food and beverage services, MTI said.
“Nonetheless, the pace of growth for most of these sectors is expected to moderate from that in 2023,” it said.
“GDP growth in 2023 was mainly driven by the other services, information and communications and transportation and storage sectors,” said Beh Swan Gin, MTI’s permanent secretary of development, at a media briefing on the report.
Monetary Authority of Singapore (MAS) chief economist Edward Robinson said at the briefing that monetary policy remained appropriate despite “continuing uncertainties on the growth and inflation front”, which the central bank would monitor closely.
Core inflation has been easing from its peak of 5.5% in January 2023, though it ticked to 3.3% in December.
MAS has increased the frequency of its reviews from twice a year to quarterly starting in 2024.
Angela Tan
The Straits Times
Asia News Network
