Finance news

Singapore’s industrial production dropped for a second straight month in November as electronics manufacturers cut output amid the nation’s longest slump in exports since 2002.

Manufacturing, which accounts for a quarter of Singapore’s economy, fell 7.5 percent from a year earlier, following a revised 12.1 percent decline in October, the Economic Development Board said today. The median estimate of 10 economists surveyed by Bloomberg was for a 16.1 percent drop.

Singapore’s economy, already in a recession, may shrink next year for the first time since 2001 as a deepening global slowdown hurts exports, according to Finance Minister Tharman Shanmugaratnam. Overseas sales fell for a seventh month in November and manufacturers such as Stats Chippac Ltd. have cut jobs amid declining orders.

“The collapse in global export demand continued to take its toll on electronics manufacturing,” said Alvin Liew, an economist at Standard Chartered Plc in Singapore. “This points to an extremely challenging fourth quarter for the economy and it seems unlikely for Singapore to attain the government’s forecast of 2 payday loans.5 percent growth in 2008.”

The World Bank predicts international trade will shrink in 2009 for the first time in more than 25 years. Global semiconductor sales will drop 16 percent because of the economic slowdown and lower consumer spending, researcher Gartner Inc. said this month.

Pharmaceuticals

Singapore’s industrial production rose a seasonally adjusted 6.2 percent in November from the previous month, helped by biomedical manufacturing including pharmaceuticals, today’s report showed.

Electronics output plunged 19.4 percent from a year earlier, following a revised 13.3 percent decline in October. Electronics make up about 30 percent of total manufacturing output.

Pharmaceutical production, which accounts for about 22 percent of Singapore’s manufacturing, gained 17.5 percent.

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