The Factory PMI showed a decrease of 0.3 points last month. Singapore's industrial growth has slowed for the 15th consecutive week, but it remains manageable thanks to continuous demand for AI-related electronics. The improvement in industry quality is mainly due to an increase in international demand for AI hardware, which exceeds the acceleration of AI requests and high orders awaiting delivery. Imports and order quantities have grown more slowly, while new exports and input prices have increased slightly.

Moreover, inventory levels of finished goods have been declining more slowly than production volumes, while the delivery index from suppliers has contracted much faster, indicating fewer delays in deliveries. Improvements in supplier delivery times have contributed, but the risk of shipping delays in the Middle East could limit growth. CEO of SIPMM, Stephen Poh, emphasized that recent data should be considered in relation to 'sectoral restructuring from low base', without losing strength.

The industrial growth of Singapore has been stimulated by strong electronics industry growth from the second half of 2025, mainly due to global demand for AI hardware booms. Singapore's industries have been influenced by constant growth in the electronic sector with a high demand for AI hardware that led to an increase in orders for AI and waiting orders. This has continued to support the growth of the electronics industry even though production activities are still below the output requests. General Manager of OCBC, Selena Ling, predicted that Singapore's industrial growth will continue to grow but warned against extending the exceptional performance of the sector until 2027.

He noticed that demand for AI hardware remains strong, surpassing high quantities of orders and waiting lists. Ling also reported increasing investor concerns about the sustainability of the global investment boom in AI, particularly on its negative impacts.