Core Viewpoint - Singapore's manufacturing sector continued its growth momentum in April, driven by early shipments in the electronics and aerospace engineering industries, with a year-on-year increase of 5.9% and a month-on-month increase of 5.3%, marking the tenth consecutive month of positive growth [1] Group 1: Manufacturing Performance - The manufacturing sector, excluding biomedical, saw a year-on-year growth of 8.1% in April, with the electronics sector experiencing a significant increase of 15.2% and aerospace engineering growing by 22.9% [1] - The growth in the electronics sector was primarily driven by strong export demand for communications and consumer electronics (up 67.8%), semiconductors (up 11.7%), and computer peripherals (up 11.3%) [1] - The aerospace sector was boosted by robust demand for commercial aviation maintenance, repair, and overhaul (MRO), which surged by 39.5% year-on-year [1] Group 2: Future Risks and Concerns - Despite the strong data, analysts express caution regarding future trends, noting that the current manufacturing growth is influenced by an "early shipment effect" that may not be sustainable, especially after the end of the "90-day tariff buffer window" [1] - OCBC Bank predicts that Singapore's manufacturing growth for the entire year of 2025 may only reach 0-2%, with the possibility of negative year-on-year growth in the second half of the year [2] - UOB warns that the significant growth in April was largely due to export companies rushing to ship products to avoid potential tariffs, and future trade disputes, particularly between the US and Europe, could severely impact Singapore's relevant industries [2] Group 3: Subsector Performance - Some manufacturing subsectors in Singapore showed weak performance, with biomedical manufacturing declining by 1.1%, chemicals down by 3.2%, and general manufacturing (including food, printing, and furniture) experiencing a decline of 15.2% [2] - The chemical industry faced challenges due to high inventories of refined oil and petrochemical products, compounded by raw material supply issues and maintenance activities, leading to continued output declines [2] - The biomedical sector's output was affected by changes in the product structure of active pharmaceutical ingredients (API), resulting in a year-on-year decrease in pharmaceutical output of 1.6% [2]

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the macroeconomic performance of China in April 2025, highlighting the resilience of the economy despite external pressures such as U.S. tariffs on Chinese goods [1][2]. Core Economic Insights - China's actual GDP growth in April 2025 is approximately 5.5% year-on-year, indicating strong economic fundamentals that support the annual growth target [1][2]. - The production sector continues to show robust growth, particularly in high-tech industries such as high-end equipment manufacturing, integrated circuits, industrial robots, and the new energy vehicle supply chain [1][3]. - Consumer retail sales growth is around 5% year-on-year, with notable performance in new products, although goods consumption is currently stronger than services consumption [1][5]. - The real estate sector shows signs of stabilization, with new home sales and prices stabilizing, although supply-side indicators are declining [1][6]. - Investment growth has slightly decreased, with manufacturing investment remaining resilient, but the electronics sector is impacted by tariffs [1][7]. Production Sector Analysis - The production sector maintains strong growth, with industrial value-added growth remaining above 6%, despite a slight decline due to base effects [3]. - High-tech industries are expanding, and the overall macro environment is improving, which may help mitigate the impact of U.S. tariffs [3][9]. Consumer Sector Trends - The consumer sector continues to show structural characteristics, with significant growth in new products exceeding 20% [5]. - The expectation is that service consumption will gradually become a key support for domestic demand in the second half of the year [5]. Real Estate Sector Performance - The real estate demand is stabilizing, with new home sales and prices showing a stabilizing trend, although the supply side is experiencing a downturn [6]. Investment Sector Insights - Investment growth has slightly declined due to a decrease in real estate and marginal cooling in infrastructure and manufacturing investments [7][8]. - Infrastructure investment remains strong, particularly in new infrastructure areas such as data centers and artificial intelligence [8]. Capital Market Signals - Recent financial policies indicate a continuous supportive tone, suggesting that 2025 may be a turning point for China's macroeconomic narrative [10][12]. - The cyclical factors that have suppressed China's economy and equity performance are nearing an end, with positive changes emerging in structural factors [12]. Potential Investment Opportunities - Future investment opportunities may arise from three main areas: technological breakthroughs, confirmation of economic stability, and global economic structural changes [11]. - The overall outlook suggests that despite tariff impacts, improvements in domestic demand and new trade dynamics will support economic resilience and potential revaluation in the capital market [11][12].