Boosted by AI-related demand, Singapore's manufacturing output rose 16.6% on year in January, marking the fifth-straight month of robust on-year expansion, reported the city-state's Economic Development Board (EDB).

Excluding the volatile biomedical sector, Singapore's factory output rose 24.1% on year in January, led by a 44% surge in the production of electronic goods, added the EDB.

The electronic sector sharply increased output of "electronic modules and components and semiconductors, with the latter supported by strong AI-related demand," said the EDB.

On a seasonally adjusted on-month basis, manufacturing output increased 5.3% in January from December, added the EDB.

In addition to the strong electronics sector, Singapore's output of transport engineering goods grew 25.2% on year in January, "led by aerospace on the back of higher production of aircraft parts and sustained maintenance, repair and overhaul (MRO) jobs," added officials.

The category of precision engineering grew 13.2% in January on year, due to growth in precision modules, components, and machinery, said the EDB.

In contrast, Singapore's biomedical manufacturing declined 33.1% on year in January, undercut by "lower production of biological products and active pharmaceutical ingredients, while medical technology fell due to softer demand for medical devices," explained the EDB.

The EDB manufacturing report was moderately at odds with a recent report from the Singapore Institute of Purchasing & Materials Management (SIPMM).

The SIPMM manufacturing purchasing managers index (PMI) rose to 50.5 in January from December's 50.3, striking slightly further above the 50-marker that separates growth from contraction, but overall pointing to a modest expansion, reported SIPMM earlier this month.