Singapore factory activity ticks up to end two-month contraction as US tariffs loom
Manufacturing activity staged a modest rebound in June but uncertainty prevails with a reprieve on Trump's global tariffs set to end next week.
SINGAPORE - Manufacturing activity in Singapore staged a modest rebound in June after languishing in contraction territory for two straight months, but uncertainty prevails with a reprieve on
US President Donald Trump's global tariffs set to end next week.
Singapore's purchasing managers' index (PMI), a barometer of the manufacturing sector's health, edged up from 47 points in May to 50 in June, with readings above that level indicating expansion.
'It is heartening to note that the manufacturing sector has reverted to an expansion going into the second half of the year, albeit trade uncertainties remain in the global economic environment,' said Mr Stephen Poh, executive director of the Singapore Institute of Purchasing and Materials Management (SIPMM).
Despite the PMI rise, Mr Poh said: 'Anecdotal evidence suggests that local manufacturers are concerned about the rapidly shifting landscape of global trade policy and tariffs, resulting in supply chain fragmentation.'
SIPMM is a professional body that gathers and compiles PMI data monthly through surveys of logistics, procurement and supply chain management professionals.
In May, it said Singapore manufacturers were facing a wave of export-order deferments and cancellations from foreign buyers hit by Mr Trump's reciprocal tariffs announced in April.
While front-loading of orders by traders trying to get ahead of the tariffs propped up manufacturing and exports for a while in 2025, the exports and output data for May showed that support had started to wither.
Top stories
Swipe. Select. Stay informed.
Singapore Singapore and Cambodia to expand collaboration in renewable energy, carbon markets and agri-trade
Singapore Ong Beng Seng's court hearing rescheduled one day before he was expected to plead guilty
Singapore ByteDance food poisoning: Catering firm convicted after cockroach infestation found on premises
Singapore Three hair salons raided in clampdown on touting, vice, drugs in Geylang and Joo Chiat
Singapore The romance continues: Former 'Singapore girl', 77, returns to Osaka Expo after 55 years
Singapore Granddaughter of Hin Leong founder O.K. Lim fails to keep 3 insurance policies from creditors' reach
Singapore Man on trial for raping drunken woman after offering to drive her and her friend home
Singapore 3 weeks' jail for man who touched himself on train, flicked bodily fluid on female passenger
Factory output in May rose 3.9 per cent year on year, but this was a slowdown from April's 5.6 per cent gain and March's 6.9 per cent growth. In May, also, non-oil domestic exports slid 3.5 per cent year on year, reversing a 12.4 per cent rise in April.
SIPMM said the latest PMI reading was attributed to an expansion in new orders, a faster expansion rate in new exports and input purchases, and a slower contraction rate of factory output and employment.
It said the imports index posted a faster expansion rate, whereas a slower expansion rate was recorded for supplier deliveries, finished goods and order backlog.
The input prices index reverted to an expansion, while the future business index posted a faster contraction.
The electronics sector PMI also increased in June after contracting for two months. It rose by 0.2 point from the previous month to 50.1 points.
SIPMM said the latest reading for the electronics sector PMI was supported by a faster expansion rate in sub-indexes of new orders, new exports and input purchases.
Factory output resumed expansion, and employment in the sector posted a slower contraction.
Ms Selena Ling, chief economist and head of global markets research and strategy at OCBC Bank, said the June PMI readings suggest that market sentiments and business confidence levels have stabilised somewhat since the April announcement of US reciprocal tariffs.
However, she added: 'That said, the front-loading efforts ahead of anticipated tariffs may be largely spent.'
Most analysts believe uncertainty about US trade policy and tariff deals will persist after a 90-day reprieve on higher levies ends on July 9. There are also signs that business momentum may cool in the coming months once the tariff realities kick in.
Ms Ling noted that despite the June PMI recovery, the future business indexes for both the manufacturing and electronics sectors have already posted three straight months of contraction since April.
'The employment gauges for both the manufacturing and electronics sectors remained in contraction territory at 49.8 and 49.7, respectively, suggesting persistent caution about hiring intentions, which is not unexpected given the tariff uncertainties that still surround the global economic landscape.'
The latest PMI data from across Asia showed a slowdown in manufacturing activity deepening further in June.
Taiwan's PMI slipped to 47.2 points in June from 48.6 in May, with new business and export sales declining at a faster pace.
South Korea, which saw its PMI reading climb to 48.7 in June from May's 47.7, was still well below the 50 threshold.
That was the same for China, where PMI rose to 49.7 in June from 49.5 in May, according to a report by the National Bureau of Statistics.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
International Business Times
37 minutes ago
- International Business Times
Asian Markets Under Pressure as Trump's Tariff Deadline Looms
New highs for U.S. stocks did not translate into gains across Asian markets on Friday. Japan's Nikkei edged 0.3% higher, but Hong Kong fell 1.3%, and South Korea shed more than 1%. Wall Street was closed for Independence Day following a robust jobs report. Investors focused on President Trump's July 9 trade deal deadline and on a new $3.4 trillion spending bill that could affect future U.S. debt. Asian Markets Decline on Growing Concerns Over Trade Asian stocks fell on Friday for the most part. Japan's Nikkei added 0.3%, but Hong Kong's Hang Seng lost 1.3%. South Korea's KOSPI dropped over 1 percent, and Taiwan's index was down 0.2 percent. Shares in mainland China also fell modestly. Markets in the United States were closed for the July 4th holiday, but futures were 0.2% lower after the S&P 500 notched a record close on Thursday in a 0.8% surge. The Dow and Nasdaq also climbed 0.8% and 1%, respectively. It was another case of markets being thrown into disarray as President Trump's July 9 deadline for trade deals with Canada and the rest of the world approaches, and traders, investors, execs, and bankers have no idea what will happen. He added the extensions would stop and more tariff letters would be sent out. To date, agreements have been struck with China, Britain, and Vietnam. Talks with India appear close, but progress with Japan and South Korea has stalled. The absence of new transactions is worrying the markets. Wall Street Lifted by Jobs Data, Rate Cut Bets Cooled The U.S. delivered a strong jobs report on Thursday, indicating the economy is still growing well. This reduced the likelihood of a Federal Reserve rate cut in July. The 10-year Treasury yield was 4.34%, up 4.7 basis points, while the 2-year yield climbed 9.3 basis points, to 3.88%. The dollar rebounded on Thursday, gaining 0.4% overall. It was a tick lower Friday morning, at 144.62 yen and 0.7942 against the Swiss franc. The euro added 0.1% to $1.1766, and the British pound was steady at $1.3650. Trump's massive new $3.4 trillion spending bill also made headlines. The U.S. House approved the 869-page law late Thursday, which would increase the nation's already $36.2 trillion debt. Concern about the fiscal picture aside, markets remained calm because of the rosier economic data that came previously. Oil Prices Flat, Gold Moves Higher The price of gold edged 0.1% higher, to $3,329.54 an ounce, as investors continued to seek safety. Brent crude futures added 1 cent, to $68.81 a barrel, and U.S. crude was up 3 cents, to $67.03. Trading was light with U.S. markets closed ahead of the weekend.
Straits Times
an hour ago
- Straits Times
Thai zoo plans free birthday bash as Moo Deng turns 1
Sign up now: Get ST's newsletters delivered to your inbox The festivities will kick off on July 10, Moo Deng's actual birthday, with a ceremony featuring a birthday cake for the little hippo. BANGKOK - Moo Deng, the adorable pygmy hippopotamus at Thailand's Khao Kheow Open Zoo, is set to celebrate her first birthday on July 10, and she is already receiving international recognition. The US Embassy in Bangkok, on July 4, sent a special birthday gift: a hippopotamus plush toy named Sammy, symbolising well wishes from the United States as it marks its own Independence Day. Meanwhile, Khao Kheow Open Zoo is pulling out all the stops for their global celebrity. Director Narongwit Chodchoy announced that a four-day 'Moo Deng's 1st Birthday' festival will be held from July 10 to 13 at the hippo exhibit in Chonburi province. The best part? Children under 135cm tall or aged 12 and under will enjoy free entry throughout the event. The festivities will kick off on July 10, Moo Deng's actual birthday, with a grand ceremony featuring a giant birthday cake for the little hippo. Visitors can also look forward to a meet-and-greet with popular animal-loving celebrities like 'Captain', 'P' Benz', 'P' Tod' and 'P' Nick', alongside famous animal influencers 'Joob Meng' from Japan and Friends and Gluta Story. Top stories Swipe. Select. Stay informed. Singapore $3b money laundering case: 9 financial institutions handed $27.45m in MAS penalties over breaches Singapore Banks tighten vigilance and measures following $3b money laundering case Singapore Seller's stamp duty hike will curb short-term speculation; market effect likely minimal: Analysts Singapore Trilateral work group formed to address allegations of foreigners illegally taking on platform work World Trump says countries to start paying tariffs on Aug 1; floats range of 10% to 70% Singapore Think like criminals, anticipate cyber-attack tactics: Experts Singapore Tourism bump from Lady Gaga concerts raked in up to estimated $150m for Singapore economy Life Book review: OB Markers sequel Ink And Influence makes catch-22 proposal for The Straits Times An exclusive auction of Moo Deng memorabilia, featuring one-of-a-kind items, will also take place, with a portion of the proceeds going directly to support animal care at the zoo. Throughout the four-day celebration, attendees can explore the 'Moo Deng in Every Moment' exhibition and photo gallery, showcasing the hippo's growth and the heartwarming stories behind her popularity. A lively mascot parade will bring colour and laughter across the zoo grounds. Fans can also purchase special licensed Moo Deng merchandise and souvenirs, including plush toys, T-shirts, bags, hats, and other collectibles. For the younger visitors, a dedicated kids' and family activity corner will offer colouring, drawing and play-dough modelling activities, as well as adorable animal matching games. THE NATION/ASIA NEWS NETWORK
Straits Times
an hour ago
- Straits Times
Banks tighten vigilance and measures following $3b money laundering case
Sign up now: Get ST's newsletters delivered to your inbox The extra scrutiny is in response to the largest money laundering incident encountered here. SINGAPORE – Local banks have beefed up oversight around money laundering risks, with one lender reassigning a banker involved in a recent high-profile case to a non-client facing role. The extra scrutiny is in response to the largest money laundering incident encountered here. This involved around $3 billion in illicit funds being washed through at least 16 financial institutions by a group from China's Fujian province who used multiple passports to avoid detection. The scandal exposed critical weaknesses, with breaches due to poor implementation of polices and controls that in turn highlighted the vital role of gatekeepers – from individuals to banks and corporate secretarial firms – in preventing financial crimes. The Monetary Authority of Singapore (MAS) said on July 4 that it found shortcomings in the assessment of a customer's risk and source of wealth, the monitoring of suspicious transactions and inadequate risk mitigation measures. Penalties amounting to $27.45 million were imposed on nine financial institutions on July 4. UOB, which was hit by $5.6 million in penalties – the second highest after the former Credit Suisse Singapore branch – said it has reviewed the issues and staff involved and addressed accountability and discipline. Top stories Swipe. Select. Stay informed. Singapore $3b money laundering case: 9 financial institutions handed $27.45m in MAS penalties over breaches Singapore Seller's stamp duty hike will curb short-term speculation; market effect likely minimal: Analysts Singapore Trilateral workgroup formed to address allegations of foreigners illegally taking on platform work World Trump says countries to start paying tariffs on Aug 1; floats range of 10% to 70% Singapore Think like criminals, anticipate cyber attack tactics: Experts Singapore Tourism bump from Lady Gaga concerts raked in up to estimated $150m for Singapore economy Life Book review: OB Markers sequel Ink And Influence makes catch-22 proposal for The Straits Times Mr Leonard Tan, former team head of group retail privilege banking at UOB, resigned in January 2023. UOB also conducted extensive internal investigations and determined that there was no willful misconduct by Mr Alvin Ang, also a former team head of group retail privilege banking. Mr Ang has been 'reassigned to a non-client facing role'. The bank has implemented remedial actions over the past two years to address the deficiencies highlighted in an internal review. These include bolstering transaction monitoring and customer due diligence processes and taking steps to ensure anti-money laundering measures are consistently and rigorously applied. The bank has also invested in technology and other resources to enhance its fight against financial crime. Employee training has been ramped up to ensure that staff meet the required standard of integrity, values and professional conduct. 'All these are part of our continuous efforts to detect and respond more quickly and effectively to risks,' UOB said. UBS, which completed its merger with former Credit Suisse in 2024, acknowledged the MAS findings. The Swiss banking giant faces penalties of $3 million for its part, while former Credit Suisse was hit with the highest penalty of $5.8 million. UBS said it has cooperated fully with the authorities and 'will continue to work together closely to safeguard Singapore's financial industry'. Julius Baer's Singapore branch, which was levied $2.4 million in penalties, has moved to strengthen its anti-money laundering framework. Its former relationship manager, Liu Kai, was charged on Aug 15, 2024 over allegedly facilitating the movement of illicit funds in the case. LGT, a private bank owned by Liechtenstein's royal family, was slapped with $1 million in penalties. Trident Trust Company (Singapore), which faces $1.8 million in penalties, said a detailed plan to address the breaches has been implemented. It did not elaborate. The asset management firm Blue Ocean Invest, which was penalised $2.4 million, said it has implemented measures to enhance internal policies and procedures. Citi's Singapore spokesperson said the bank has strengthened its client onboarding and monitoring processes. Its former banking relationship manager, Wang Qiming, has indicated his intention to plead guilty to 10 charges, including money laundering and forgery, during a court appearance in December 2024. Wang's clients at the bank included two of the 10 convicted money launderers – Su Baolin and Vang Shuiming. Prosecutors said that around December 2020, Wang allegedly abetted Su in making a false loan agreement to deceive Standard Chartered Bank about the source of a deposit made into Su's bank account. He also allegedly forged a loan document between April 19 and April 25, 2021, to deceive Citibank about the source of Vang's funds to allow a deposit of $999,980 into his account. Citi sacked Wang in April 2022.
