SINGAPORE INDUSTRIAL PROPERTY MARKET OVERVIEW
AS AT 9 FEBRUARY 2015
PREPARED BY COLLIERS INTERNATIONAL CONSULTANCY & VALUATION (SINGAPORE) PTE LTD FOR THE PURPOSE OF
THE ANNUAL REPORT
1.0 SINGAPORE ECONOMIC OVERVIEW
1.1 REVIEW OF ECONOMIC PERFORMANCE IN THE PAST YEAR
The Singapore economy grew at a moderated pace in 2014, due mainly to slower growth in the construction
and services producing industries. Based on advance estimates released by the Ministry of Trade & Industry
(“MTI”) on 2 January 2015, Singapore’s real Gross Domestic Product (“GDP”) growth slowed from 3.9% year-on-
year (“YoY”) in 2013, to 2.8% YoY in 2014.
1.2 MANUFACTURING OUTPUT AND INVESTMENT COMMITMENTS
Singapore’s total manufacturing output rose 2.6% YoY in 2014, according to latest figures released by the
Economic Development Board (“EDB”) on 26 January 2015. This was a faster pace of expansion compared to
2013’s 1.7% YoY increase.
YEAR-ON-YEAR GROWTH IN GDP AND MANUFACTURING SECTOR OUTPUT
The biomedical manufacturing cluster recorded the fastest output growth of 8.8% YoY in 2014, followed by the
chemicals, precision engineering and transport engineering clusters with respective annual increases of 5.3%,
3.8% and 0.9%. This helped to offset the respective annual declines of 0.1% and 1.7% in outputs of the electronics
and general manufacturing industries clusters in 2014.
However, total manufacturing fixed asset investments (“FAI”) fell for the second consecutive year, by 15.8% YoY
to S$6.7 billion in 2014. This was dragged down mainly by the 51.0% decline in FAI in the electronics cluster,
which contributed to 23.9% of total manufacturing FAI in 2014. The contributions by the respective industry
clusters to total manufacturing FAI are provided in the following table:
0%
-5%
-10%
5%
10%
15%
20%
25%
30%
35%
2004
2007
2010
2005
2008
2011
2006
2009
2012
2013
*Advance GDP Estimates
Source: Singapore Department of Statistics/EDB
2014*
GDP Growth
Manufacturing Output
CAMBRIDGE INDUSTRIAL TRUST | ANNUAL REPORT 2014
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