Biomedical manufacturing sector hit with steepest output crash in four years
Expect more headwinds ahead.
The 28.6% year-on-year decline in biomedical manufacturing output was the sector's worst performance since May 2011, according to UOB.
The steep decline was blamed on a 38% crash in pharmaceutical output, which was dragged by the lower production of active pharmaceutical ingredients and biologics products.
UOB noted that the large decline in the biomedical manufacturing cluster weighed considerably on April’s industrial production as it represents nearly one-fifth of total manufacturing output.
“The headwinds from the on-going economic weakness in the Eurozone where we estimate the Euro to continue on a depreciating path against the SGD may slow pharmaceutical exports in the months ahead. However, this would not steer us off our longer term optimism in this cluster due to the increase in global healthcare demand as well as Singapore’s strong standing in this capital- and skill-intensive cluster,” stated UOB.
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