Singapore's manufacturing industry shows sustained growth, Singapore company incorporation reports

Singapore's manufacturing industry shows sustained growth, Singapore company incorporation reports

By Jacqueline Chia

5 August 2010

Singapore's latest Purchasing Managers' Index (PMI) has reported signs of sustained growth in the manufacturing sector, which has an overall expansion for a 15th straight month.

The manufacturing economy's growth last month was spurred on through continued increases in output and inventory.

The PMI – an early indicator of manufacturing activity - gained 0.9 of a point month on month to 52.2 in July.

A reading above 50 indicates expansion, while one below 50 denotes contraction.

Janice Ong, executive director of the Singapore Institute of Purchasing and Materials Management (SIPMM), which publishes the PMI, said: "It is good news and a boost for local manufacturers and consumers as the manufacturing economy continues to remain on the expansion track, reflecting bullish business ambience."

Mr James Nuben of AsiaBiz Services said the rise in PMI indicators are definitely showing signs that Singapore's economy might be able to sustain its growth into the end of the year.

"Singapore's economy is very resilient and new businesses are incorporated every day. The PMI indicators for the manufacturing sector show that with continued Singapore company incorporation, economic growth can be sustained," said Mr Nuben.

AsiaBiz specialises in Singapore company incorporation and work visa applications for foreign entrepreneurs and companies.

The electronics sector recorded a boom last month with its index climbing a solid 5.2 points month on month to 55.7 – the strongest surge since May 1999.

Miss Ong noted that as a result of higher orders from domestic and overseas markets, the overall output – at 53.8 – was 2.4 points higher than last month.

In particular, the electronics sector output was very strong, rising 9.9 points to surpass the 60-mark at 60.8.

Import prices reported 51.3 while input prices stood at 51.7, but both dropped 1.1 points and 0.3 points respectively.

Stocks of finished goods declined with a reading of 48.3.

"Lower input prices may suggest there is no shortage of finished goods as production output has expanded," said Miss Ong.

"This softening of prices certainly does have a positive effect on the global economy."

The index reading for employment rose to 52.2 last month, after a two-month dip.

Employment in the electronics sector also increased to 53.6, reflecting a positive employment outlook for the local manufacturing economy.

"It is an upbeat sign for the manufacturing and global electronics industry,' said Miss Ong.

"As the external environment and the global electronics industry become more favourable, companies are beginning to hire again."

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