ENERGY demand in May has continued to increase from April, adding to evidence of 'green shoots' in the economy.

The Energy Market Company (EMC) said on Tuesday that May demand for electricity reached 4,697 megawatts (MW), up 3.6 per cent from April - when six consecutive months of demand decline was reversed.

May figures could indicate the beginning of an uptrend in demand, and in turn economic activity.

Purchasing Managers Index (PMI) numbers on the same day showed that manufacturing grew for the first time after eight straight months of slump.

Still, it is too early to say if this demand uptrend is sustainable, as May is also a hot month in Singapore's weather, where electricity usages typically climbs, said EMC chief executive Dave Carlson.

Compared to May last year, electricity demand this May is down by 2.3 per cent.

Speaking at a media briefing, Mr Carlson spoke on the milestones achieved in Singapore's electricity market, outlined in EMC's recently published annual report 2008.

Most notable were the sale of the three largest gencos - Tuas Power, Senoko Power and PowerSeraya - by Temasek Holdings for more than $12 billion.

This reflects the confidence investors around the globe have for Singapore's transparent and efficient market, said Mr Carlson.

Increased competition also saw more energy generators join the landscape, such as Schering-Plough, with its tri-generation embedded generator, and IUT Singapore generating energy from food waste.