Singapore’s manufacturing sector showed strong performance, expanding year-on-year in both the first and second quarters of 2025. This growth was particularly strong in the electronics, precision engineering, and transport engineering clusters.
The electronics cluster, a significant contributor to manufacturing output, saw strong growth, buoyed by the global demand for semiconductors, particularly those related to artificial intelligence (AI) technologies and data centers.
Precision engineering experienced growth due to a rise in demand for semiconductor-related equipment and measuring devices.
The transport engineering cluster, especially the aerospace segment, was a major driver of growth, benefiting from the sustained demand for aircraft maintenance, repair, and overhaul (MRO) services as global air travel continues to recover.
Adoption of Advanced Technologies
Singapore’s manufacturing sector is also increasingly adopting Industry 4.0 and 5.0 principles, integrating technologies like the Internet of Things (IoT), Big Data, and AI to improve productivity and competitiveness.
This is well supported by government programmes such as Manufacturing 2030, which aims to increase manufacturing value-add by 50% by 2030; SkillsFuture Enterprise Credit which helps companies upskill their workforce and transform their businesses; and strategic collaborations between multinational corporations, local enterprises, and the research ecosystem.
Outlook for the Manufacturing Industry
The long-term outlook of Singapore’s Manufacturing industry remains positive, though growth is expected to slow down in 2H2025, due to the dissipating effect of “front-loading” activities and the full impact of global trade tensions and tariffs taking hold.
On the upside –
· Global Electronics Cycle: The ongoing demand for semiconductors, especially for AI and data centers, is expected to continue providing a solid foundation for the electronics cluster.
· High-Value Sectors: The focus on high-value sectors like biomedical manufacturing and transport engineering will help to sustain growth and insulate the industry from broader economic slowdowns.
· Digitalisation and Automation: The continued adoption of advanced technologies will enhance productivity and maintain Singapore’s competitive edge in the global market.
How is AI impacting Singapore’s Manufacturing Industry
Singapore is making significant strides in AI development within its manufacturing sector, with a strong focus on enhancing productivity, driving innovation, and upskilling its workforce. This effort is a key part of the nation’s broader strategy to cement its position as a global leader in advanced manufacturing.
Of note, Singapore’s semiconductor industry is being buoyed by the global demand for AI-related hardware and chips. Unlike other countries that focus on designing or fabrication, AI plays a strategic role across the entire value chain in Singapore, from advanced manufacturing to equipment, testing and R&D.
Key AI-Related Job Roles in Manufacturing
The adoption of AI in Singapore’s manufacturing sector is not just a technological shift but a fundamental transformation of its workforce, creating new job roles and reshaping existing ones. This has led to a rise in roles that require a combination of technical AI skills and domain-specific knowledge.
Some of the most in-demand roles in 2025 include:
- Machine Learning Engineers: design, build, and deploy AI models that optimize manufacturing processes; predictive maintenance; quality control, or supply chain.
- Data Scientists: analyze data generated on the factory floor to identify patterns, build predictive models, and provide insights that drive business decisions.
- AI/Robotics Engineers: integrate AI with robotics and automation systems for the programming and maintaining of intelligent robots that perform tasks on the assembly line, handle materials, or conduct inspections.
- Prompt Engineers: specialize in optimizing interactions with large language models (LLMs) and generative AI, which are being used to automate administrative tasks, create new product designs, and streamline communication.
- Computer Vision Engineers: develop systems that enable machines to interpret and understand visual information, which are critical for automated visual inspection and quality assurance.
For enquiries on staffing solutions or assistance in sourcing niche manufacturing talents, please write to us at enquiries.sg@achievegroup.asia