The Singaporean manufacturing industry is on the path of gradual restart, with base effects aiding the improvement and the increasing role of AI technologies. As highlighted by RHB’s recent report these factors are expected to realise the recovery of the sector, that has for a long time now been facing external shocks and cut throat interest rates.

The sentiment in manufacturing was upbeat in May with year-on-year output growing at 2.9%, after months of contraction. This growth was mainly contributed by the electronics sector specifically, which has increased by 20% to the same period of last year. Especially, the growth in electronics can be attributed to the rising interest in AI parts and devices.

Gurus in the manufacturing industry strongly agree that the implementation of AI in different production processes is showcasing the way forward in boosting productivity and developing market innovation. Large numbers of Singapore based firms are currently incorporating advanced AI solutions to carry out operations, monitoring and controlling quality and general productivity. It is believed to persist in the near future possibly making Singapore a destination for AI-based manufacturing in the region.

But there is still more work to be done in this aspect of manufacturing. The global economies appeared to be unstable for the long-term future; trade war; supply chain risk remains. Also, because of the high interest rate environment , companies’ cost of borrowing and its investment schedules are feel the heat. However, it has been seen from the experience of this sector that this sector has lot of strength and versatility in its recent performance.

The increased governmental support for manufacturing is also gradually emerging as a factor that contributes to its revival. There are plans, for instance the Singapore Manufacturing 2030 plan, which seeks to double the manufacturing GDP in the next decade, in this way framing the industrialisation for sustainability. In the plan, there is focus on the use of advanced manufacturing technologies such as Artificial Intelligence and robotics that are well adopted in the current world of manufacturing.

Similarly, changes have being identified on the nature of employment available in the manufacturing industries in Singapore. Due to the growing pace at which technological implementation is happening across enterprises, there is massive demand for proficiency level workforce that can handle them. Such portfolios are contributing to the generation of new employment opportunities but at the same time demanding workers to enhance their capacities.

Overall, the situation in the manufacturing sector is helping Singapore recover in other sectors as well. The business sectors, which are related to the manufacturing sector and logistics and transportation sections, are active now. Moreover, professional activities, especially in relation to artificial intelligence and data analysis, are developing due to the search for expertise in the application of new approaches by manufacturers in their activities.

The current and the near future of the manufacturing sector has economists, especially those who study economic growth, expectant. , however, note that although there is this recovery they state that more external forces such as the international demand and the international relations the sector is also going to face more challenges. Further, manufacturers’ capability to remain competitive with advanced technology such as the AI technology will be necessary for competitiveness in Singapore.

Even today, as the manufacturing sector in Singapore rebuilds and reinvents itself, it presents a microcosm of the Asian manufacturing industry. The positive experience of the city-state in the application of AI and other modern technologies may be viewed as an example of action for other states of the region striving to reinvent their manufacturing industries in the face of current global trends.