An overview of Singapore’s manufacturing landscape
Singapore’s manufacturing sector contributes more than 20 percent to its gross domestic product (GDP). However, just around a tenth of all employed residents in Singapore work in the manufacturing sector. Its manufacturing industry focuses on products higher in the value chain, with the key segments being electronics and precision engineering, chemicals, and biomedical manufacturing. Much of the manufacturing industries in Singapore rely on automation and technology-driven processes. The country ranked second worldwide for industry-related robot density in manufacturing.With its emphasis on automation, innovation, and research and development in manufacturing, along with the quality of its infrastructure, Singapore has attracted leading global manufacturers to establish a presence in the country. These include pure-play semiconductor foundries such GlobalFoundries and United Microelectronics Corp and global pharmaceutical giants GlaxoSmithKlein, Novartis, and Pfizer. However, Singapore still faces limitations in its capacity for larger manufacturing plants, with business park space being the lowest among all commercial and industrial real estate supply.
The focus on high-value electronics and biomedical products has worked to Singapore’s benefit. In 2021, Singapore’s manufacturing output was at a ten-year high, despite the ongoing COVID-19 pandemic. This was bolstered by the high demand for semiconductors due to the global chip shortage, as well as increased demand for biomedical and pharmaceutical products to meet pandemic demand.