Biomedical manufacturing was the key driver for the continued resurgence in Singapore's factory production last month, and is expected to prop up manufacturing performance for the rest of the year.

The cluster's strong performance contributed to the 13 per cent year-on-year increase in manufacturing output last month compared with the same period last year, according to data released by the Economic Development Board (EDB) yesterday. This follows a 16.5 per cent surge in March.

However, excluding biomedical manufacturing, overall factory output last month fell 3.5 per cent, due to Covid-19-related measures both locally and globally.

Maybank Kim Eng economists Chua Hak Bin and Lee Ju Ye noted that last month's manufacturing performance exceeded expectations, with pharmaceutical production reaching a record high.

Robust growth in the pharmaceuticals segment led to the strong showing from the biomedical cluster, which expanded 100.5 per cent last month compared with the same period last year.

United Overseas Bank economist Barnabas Gan noted that last year's low base, combined with increased demand for medical goods amid the Covid-19 pandemic, will help to support growth for the manufacturing sector in the months ahead.

"The surge in the production and export of biomedical products will likely stay supported, given the uptick in global demand for medical necessities," he said.

Dr Chua and Ms Lee added that the pharmaceuticals segment "will likely save the manufacturing sector from a recession and help partly offset the slump in non-oil domestic exports during the pandemic".

The biomedical manufacturing cluster is a rare bright spot amid the dreary global economic backdrop, and carried Singapore's manufacturing sector to a 6.6 per cent year-on-year growth in the first three months of the year, according to data released by the Ministry of Trade and Industry yesterday.

It recorded a 49 per cent growth in output from January to March this year, compared with the same period last year.

The cluster is expected to remain resilient and continue expanding in the coming months, bolstered by pharmaceutical and biological goods production.

Precision engineering output provided a smaller boost to manufacturing growth last month, expanding 5.9 per cent compared with the same month last year.

The key electronics sector, which accounts for about two-fifths of total production, eked out a 0.8 per cent year-on-year increase in output last month, supported by growth in the semiconductors segment.

On the other hand, the transport engineering cluster was the worst hit in April, with output plunging 24.1 per cent year on year last month.

Lower repair and maintenance activities, with airlines grounding aircraft amid the pandemic, led to a 28.1 per cent contraction in the aerospace segment, EDB said.

General manufacturing output contracted 20.2 per cent last month, due to softer export demand and scaling down of production during the circuit breaker period.

Output for the chemicals cluster declined by 6.8 per cent, weighed down by plant maintenance shutdowns and a slowdown in demand due to lockdowns in key export markets.

Mr Gan cautioned that Singapore's economic prospects remain uncertain despite the recent manufacturing resurgence, and highlighted that the biomedical cluster accounts for less than 20 per cent of Singapore's overall industrial production.

"This suggests that any exacerbation of the Covid-19 pandemic will likely prove to be more detrimental than beneficial for Singapore's manufacturing environment.

"Beyond the pandemic, we would also need to account for the renewed US-China trade tensions that may intensify in the months ahead," he said.