SGD Looks Ahead of October Figures
• Minimal Growth in Singapore’s Industrial Production
• SGD Remains Unchanged Following Announcement
The Singapore Dollar rose minimally following the Economic Development Board’s Industrial Production statement release. Singapore’s industrial production expanded by 0.2 percent in October year-on-year, coming in under analysts’ forecast of 0.6 percent. The Economic Development Board, Singapore’s leading government agency for planning and executing strategies for the development of Singapore’s business sector and economy, released today that excluding biomedical manufacturing, output declined 4.3 percent. Growth on a seasonally adjusted month-on-month basis rose by 2.6 percent in October 2014, however excluding biomedical industries, output fell 3.4 percent.
As a whole the biomedical manufacturing sector expanded by 22.5 percent year-on-year in October 2014. Pharmaceutical segments alone rose 24.3 percent and following this upward trend so too did the medical technology segment, rising 15.6 percent. Such a rise can be characterized by strong export demand for new products launched this year. The chemicals’ industry also expanded by 2.3 percent year-on-year, stemming from growth in petrochemicals of 14.1 percent. The lack of growth in industrial production and the inability of the figures to meet analyst’s expectations can primarily be characterized by a fall in petroleum output of 15.4 percent due to plant closures. A contraction in both the electronics industry of 6.1 percent year-on-year and transport engineering by 8.8 percent year-on-year also contributed to the dismal statistics. Furthermore, marine and offshore engineering fell 9.1 percent on account of lower petroleum output.