Singapore’s industrial market retains steady growth amid global uncertainty

SINGAPORE, 23 April 2026 – Dr Chua Yang Liang, Head of Research & Consultancy, Southeast Asia 蔡炎亮博士， 东南亚研究与咨询部主管 commented:

Singapore’s islandwide industrial property market continues to maintain a stable rental growth trend although marginally lower than the previous quarter. Limited completions saw occupiers absorbing previously completed projects, tightening occupancy by 0.3 percentage points in the multi-user factory segment and by 0.4 percentage points in single-user factories.

According to JTC’s industrial property statistics, the All Industrial Rental Index rose 0.4% quarter-on-quarter (q-o-q) in 1Q 2026, while the All Industrial Price Index increased by 1.2% q-o-q.

Macro indicators also point to stable underlying demand with Singapore’s Manufacturing PMI at 50.5 in March 2026, slightly down from 50.6 in February, marking the eight consecutive month above the 50-point threshold. The electronics PMI also remained expansionary at 51.4.

This resilience is consistent with continued strength in the electronics and semiconductor ecosystem, supported by global AI-related investments as seen in the surge in sales of semiconductors globally. EDB’s latest Business Expectations Survey (1Q 2026) reported an overall net weighted balance of +11% for improved manufacturing business conditions for January – June 2026, an improvement from that in 4Q 2025.

The positive mood was led by electronics (+33%), particularly semiconductors (+41%), as artificial intelligence related investment sustained demand. However, we are cognizant that these survey results may not have fully captured the effect of the Middle East crisis which started towards the end of February.

Note: “Net weighted balance” reflects the balance of firms expecting conditions to improve versus worsen; it is not the magnitude of change.

As such, we remain cautious on the outlook for the first half of 2026. Downside risks remain, particularly if geoeconomic tension and effects of elevated oil prices work itself into the global production system and feed into inflation. Continued AI-led investment and resilient electronics demand, however, should provide some support, especially for higher-specification of industrial and logistics assets.

Rents are likely to remain on a more modest path alongside prices. We estimate the All Industrial Rental Index for full year 2026 may see a moderate upside of 1-2% given the higher expected completion and slower global economic growth. All Industrial Price Index should record some 2-3% as capital seeks shelter in safer havens like Singapore, driving marginal yield compression amid a potentially higher cost environment.