Morning Wrap | Nio Achieves Record Deliveries in Q4 2024

Singapore shares opened higher on Thursday;:

Today's Volume / Value: 83.98M / S$51.56M

Advancers / Decliners: 84 / 53

In 2024, Singapore's economy expanded by 4%, exceeding the expected 3.5%, with the Ministry of Trade and Industry (MTI) reporting a Q4 growth of 4.3%. Although manufacturing growth slowed to 4.2% in Q4, the services sector improved slightly to 4.3%. Overall, the economy saw a modest quarterly rise of 0.1% in Q4. Looking ahead to 2025, MTI forecasts economic growth between 1% and 3%. Prime Minister Lawrence Wong has committed to addressing the persistent challenges of global inflation and cost-of-living increases..

Singapore's manufacturing sector, driven by the electronics and semiconductor industries, is projected to grow in 2025, despite potential challenges from U.S. President Donald Trump’s trade policies. The sector experienced a 3.5% increase in output through the first 11 months of 2024, with electronics notably up by 7.1%. However, Trump's proposed tariffs on Chinese goods and other imports introduce uncertainties that could impact exports, particularly to the U.S. and China.

Opportunities may emerge as companies consider diversifying production to ASEAN to mitigate potential tariff impacts, potentially benefiting Singapore’s manufacturing landscape. Despite geopolitical risks, Singapore’s manufacturing sector is well-positioned to adapt and capitalize on new opportunities.