FX.co ★ Singapore Business Mood at 22-Month High

Business confidence in Singapore’s manufacturing sector remained strongly positive in the third quarter of 2026, with the net weighted balance rising to 24%, up from 12% in the previous survey. Sentiment was supported by sustained global demand for AI-related products, which helped offset persistent geopolitical and economic uncertainties. Electronics was the most optimistic cluster, with its net weighted balance jumping to 42% from 19% in Q2, underpinned by stronger confidence in semiconductors (47% vs 29%), computer peripherals and data storage (49% vs -73%), and other electronic modules and components (35% vs -18%). Biomedical manufacturing also retained a positive outlook, with its balance improving to 14% from 3%, largely on the back of medical technology (17% vs -1%). In contrast, confidence in precision engineering softened, as the balance eased to 48% from 55%, reflecting weaker sentiment in both machinery and systems (58% vs 62%) and precision modules and components (6% vs 28%).