Recent surveys from the Singapore Department of Statistics and the Economic Development Board reveal mixed forecasts for the local economy as 2026 approaches. The manufacturing sector shows a net positive outlook of 8%, with 23% of companies expressing optimism, while 15% are pessimistic. However, specific industries like precision engineering and electronics face significant challenges, particularly in the Machinery & Systems category where no companies foresee improvements in the near term.
Conversely, the services sector, which makes up three-quarters of resident employment in Singapore, displays a more favorable outlook following a recovery from recession fears tied to international tariffs. The economy has demonstrated robust growth, with GDP rising by over 4% this year. While most industries in manufacturing expect growth, transport engineering remains buoyed by aerospace, countered by declines in land transportation.
The ongoing uncertainty, influenced by tariff issues and the rapid evolution of AI technology, presents both opportunities and risks. As the situation evolves, companies will need to navigate these challenges to maintain stability in the coming months.