Economists at CGS International noted in a report that Singapore's manufacturing sector may experience weakness in the second half of 2023, as both electronics and biomedical segments have begun losing growth momentum.

They highlighted that Singapore's third-quarter GDP estimates also indicate economic deceleration, reflecting widespread weakness across most industries. One of the primary drivers of this economic slowdown is the deteriorating performance of sectors such as manufacturing, with Singapore's electronics output contracting in August, contrasting sharply with the expansion seen in July.

The economists further added: "We expect this growth deceleration trend to persist as front-loading effects dissipate and ongoing external uncertainties continue to suppress demand."