Sectors Performance In December 2025

In December 2025, Singapore’s industrial production dropped by 13.3% from the previous month. This decline was expected, primarily due to a huge 85.8% fall in pharmaceutical output. However, when looking at the year compared to last, industrial production still rose by 8.3%. The electronics and transport engineering sectors showed solid growth. The electronics sector increased by 30.8% year-on-year in December, which was an improvement from 18.1% in November. This growth was mainly driven by the demand for AI-related products. Transport engineering also performed well, rising by 19.9% year-on-year. This was supported by an 8.5% growth in marine and offshore engineering, while aerospace surged by 35.9%. This data highlights the mixed performance of different sectors in Singapore’s manufacturing industry. The decline in pharmaceuticals affected the overall numbers significantly, but the strong performances in electronics and transport engineering helped maintain positive year-on-year growth. These trends indicate a diverse shift within industrial activities in the last quarter of 2025. Looking at the December 2025 industrial production numbers, we should analyze the Singaporean market by sector. The alarming month-on-month drop of 13.3% mainly arises from a single erratic segment. The year-on-year growth of 8.3% shows that other areas of the economy are doing quite well. We should approach the 85.8% monthly drop in pharmaceuticals with caution. This sector is known for its extreme volatility, influenced by the production schedules of a few major plants. Similar large swings occurred in biomedical output in 2023 and 2024, often correcting sharply in the next quarter. Thus, making aggressive short positions based on this single data point might be risky. It could be wiser to wait for January’s data or use options to manage risk in any trades.

Electronics And Transport Engineering Growth

The key story here is the strong performance in electronics, which grew 30.8% year-on-year, driven by demand for artificial intelligence. The World Semiconductor Trade Statistics (WSTS) recently boosted its 2026 global market forecast to 15% growth, highlighting the AI infrastructure boom. Traders should consider buying stocks or ETFs related to semiconductors, as this momentum is likely to continue in the coming weeks. Transport engineering also shows a solid outlook, increasing nearly 20% from the previous year, with aerospace up an impressive 35.9%. Recent January 2026 earnings reports from global airlines have pointed to a rise in aircraft maintenance and service demand in the Asia-Pacific hub. This indicates ongoing strength, making long positions in Singapore’s aerospace sector a promising strategy. For the Singapore Dollar, the situation is more complex. The strong export performance in electronics and transport is a positive factor, but December 2025’s core inflation data still exceeds the central bank’s target. This may prompt the Monetary Authority of Singapore to continue its tightening measures, creating support for the currency despite the weak overall production number. Create your live VT Markets account and start trading now.

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