SEO Version
1.2
Sectoral Performance
Following the growth of 7.6% in 2011, the manufacturing sector expanded marginally by 0.1% in 2012
due to the weak global demand. While the electronics and chemicals clusters contracted considerably,
the biomedical manufacturing and transport engineering clusters provided support to the manufacturing
sector (Table 1.1).
Table 1.1: Growth of Manufacturing Clusters
% YOY Change
2008
2009
2010
2011
2012
Electronics
-7.1
-8.5
35.7
-12.8
-11.3
Chemicals
-3.6
-8.8
12.9
3.3
-0.4
Biomedical Manufacturing
-6.8
11.6
49.8
31.5
9.9
Precision Engineering
-7.4
-16.1
39.6
14.7
1.3
Transport Engineering
7.1
-5.5
-4.6
8.8
11.2
General Manufacturing
2.2
-4.5
10.7
-2.6
2.0
Source: MTI, MAS, DTZ Consulting & Research, February 2013
The services producing industries, which is estimated to have grown by 1.2% in 2012, also helped provide
some cushioning to the economy. In particular, the transport and storage sector showed sustained growth
throughout 2012, though at a slower pace. Conversely, the wholesale and retail trade sector was weighed
down for the frst three quarters of 2012 by the global slowdown.
1.3
Investment Commitments
Singapore achieved record investment commitments in 2012 despite global economic uncertainties.
In particular, Fixed Asset Investments
1
(“FAI”), a key indicator of manufacturing investments, grew from
S$13.7 billion in 2011 to S$16.0 billion in 2012, above its previous forecast of S$13.0 to S$15.0 billion.
The expected Value-Added per annum due to the increase in FAI is estimated to contribute S$20.3 billion
in 2012, up from S$15.5 billion in 2011. Notwithstanding, Total Business Expenditure
2
(“TBE”) declined
from S$7.3 billion to S$6.2 billion over the same period, refecting the cautious business sentiments.
Table 1.2 highlights the industries experiencing the highest growth in investment commitments in 2012.
The logistics industry, a key driver of the warehousing segment, saw one of the highest increase in FAI
and TBE, refecting the strong interest in Singapore as a logistics hub.
Table 1.2: Increase in Investment Commitments in 2012 (Top Three Gainers)
Fixed
Asset
Investments
Increase
(S$ billion)
Total Business
Expenditure
per Annum
Increase
(S$ billion)
Expected
Value-Added
per Annum
Increase
(S$ billion)
Chemicals
4.20
Logistics
0.30
Engineering and
Environmental
Services
7.00
Logistics
0.45
Electronics
0.20
Chemicals
0.90
Transport
Engineering
0.20
Transport
Engineering
0.20
Logistics
0.50
Source: EDB, DTZ Consulting & Research, February 2013
1
FAI refers to capital investments in facilities, equipment and machinery.
2
TBE refers to a company’s annual operating expenditure when the project is fully implemented (excluding depreciation). The major components include
wages, depreciation and rental.
45
SABANA REIT
Annual Report 2012
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