SINGAPORE, July 31 (Xinhua) -- Business sentiment in Singapore's manufacturing sector remains largely cautious in the face of ongoing tariff uncertainties, according to the Economic Development Board (EDB) on Thursday.
A weighted 85 percent of firms surveyed expect business conditions to remain broadly unchanged in the second half of 2025. Meanwhile, a weighted 10 percent anticipate an improvement, while 5 percent foresee a weaker outlook. This results in a net weighted balance of 5 percent of manufacturers expecting better business conditions in the July-December 2025 period compared to the second quarter.
Among the various clusters, the electronics sector is the most optimistic, with a net weighted balance of 17 percent of firms projecting improved conditions over the next six months. The positive outlook is largely driven by the semiconductors segment, which expects a seasonal pick-up in orders and sustained demand related to artificial intelligence (AI), despite persistent concerns over U.S. tariffs.
In contrast, the chemicals cluster is the most pessimistic, with a net weighted balance of 7 percent of firms expecting weaker business conditions. Companies in the petrochemicals, specialties, and other chemicals segments are concerned that trade policies may dampen export demand for their products. ■
