Singapore industrial market resilient; AI electronics boost outlook

SINGAPORE, 22 January 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 industrial property market remained resilient through 2025, supported by ongoing global supply-chain realignment and periods of front-loaded trade flows amid tariff uncertainty. As a result of an increase in completions in the quarter, occupancy came under pressure although demand fundamentals stayed firm and rental growth continued to dominate market sentiment.

According to JTC’s industrial property statistics, the All Industrial Rental Index rose 0.5% quarter-on-quarter (q-o-q) in 4Q 2025, while the All Industrial Price Index increased at a faster pace of 1.4% q-o-q. On a year-on-year (y-o-y) basis, the price index was up 5% and the rental index rose 2.4% in 4Q 2025.

Industrial values remained elevated in the quarter. Based on this latest publicly available time series, the all-industrial price index reached 111.8 in 4Q 2025 (4Q 2012 = 100), up from 110.3 in 3Q 2025.

Macro indicators also point to steady underlying demand. Singapore’s Manufacturing PMI edged up to 50.3 in December 2025 from 50.2 in November, marking the fifth consecutive month above the 50-point threshold. The electronics PMI also remained expansionary at 50.9.

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 (4Q 2025) reported an overall net weighted balance of +8% for improved manufacturing business conditions for October 2025–March 2026, led by electronics (+30%) particularly semiconductors (+43%). The same survey also showed an overall +7% net weighted balance for higher manufacturing output in 4Q 2025 versus 3Q 2025, again led by semiconductors (+43%).

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

We remain cautiously optimistic into the first half of 2026. While downside risks persist—particularly if tariff measures begin to bite as front-loaded inventories normalize—continued AI-led investment and resilient electronics demand should provide support, especially for higher-specification industrial and logistics assets. Rents are likely to remain on this 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 another upside of 3-4% as liquidity continues to churn in a lower capital cost environment driving further yield compression.

JLL Research, 2026 MACROBOND