📊Executive Summary

Singapore's manufacturing sector has shown resilience with a rise in the purchasing managers' index (PMI) to 50.2 in November, indicating growth for the sixth consecutive month. The electronics sector, which constitutes 40% of manufacturing output, recorded a PMI of 50.6, driven by increasing demand for AI chips and server hardware. This uptick is attributed to sustained global demand, particularly in data center infrastructure and consumer electronics. However, there are concerns regarding a contraction in the order backlog index, which could signal potential production cutbacks if the trend continues. Economists predict that the growth momentum will extend into the first half of 2026, bolstered by the AI boom and inventory restocking....