Singapore’s manufacturing is likely to expand 5%-10% in 2011 from 29.7% in 2010 as the favorable base of comparison disappears and pharmaceuticals output moderates, Alvin Liew of Standard Chartered Bank says after data showed December output grew 9.0% on-year, compared with +40.5% in November, lower than the 19% median forecast of 12 analysts polled by Dow Jones. 2011 GDP growth is likely to slow to 4.6% from 14.7% in 2010, Liew says.

“Singapore’s growth is likely to return to trend in 2011 on a moderation in the manufacturing sector (especially in pharmaceuticals) and a high base effect,” he says.

He adds, the marine and offshore segment is likely to be an outperformer in 2011 and tourism and financial services are likely to become a more-prominent driver of GDP growth.

 

Data shows the marine and offshore segment returned to growth with a 4.7% expansion in December, compared with a 14.8% decline in 2010.