Singapore’s GDP grew far less than what economists had hoped in Q2 with a 1.7% growth being reported – a somewhat dismal performance following a 2.8% growth for Q1.
Critics have suggested that Singapore’s contracting manufacturing sector is to blame, which reported a 4.0% decline in Q2 following a 2.7% decline from Q1, though it can be said that their goods producing industry, in general, is suffering, with bio-medical manufacturing and transport engineering clusters being the main cause.
However, firms are trying to counteract this decline, with 70% of manufacturing firms planning to invest in new machinery and other innovative technologies between April 2015 – March 2016. Ultimately, this will enable such firms to stabilize the manufacturing sector, by expanding production capacity and reaching export goals.
Given the continual decline in such clusters, this initiative should facilitate the revitalization of manufacturing in the Singaporean economy, though …