Singaporeans gorge the most in Southeast Asia

Singapore’s food and beverage (F&B) services industry contributed approximately SGD 11.98bn or 3.5% to the country’s total GDP in 2012. On a per capita basis, Singapore has the highest food consumption levels in Southeast Asia, accounting for 3% of GDP. Due to limited domestic agricultural production and rapid urbanisation, the country imports more than 90% of its food products, particularly from other Asian countries. Imports of F&B account for over 8% of GDP in 2012.

Expenditure on F&B has grown steadily in Singapore, with market value expanding from around SGD 9bn in 2007 to SGD 12bn in 2012. The rise in the number of working women, growing middle class population and the surge in disposable income were the main drivers of this growth.

Going forward, the country’s F&B industry is expected to witness robust growth thanks to highly promising per capita consumption growth. Food retail, which currently represents 40% of the total retail spending in Singapore, is expected to increase due to higher incomes and rising visitor arrivals.

Key findings

• Singapore’s F&B industry contributed around SGD 12bn or 3.5% to the country’s total GDP in 2012. The rise in the number of working women, growing middle class population and  the surge in disposable income have contributed to the expanding F&B market. 
• On a per capita basis, Singapore has the highest food consumption levels in the Southeast Asia region. The      country’s food consumption was estimated to reach USD 7.7bn in 2012, accounting for 3% of GDP.
• Restaurants contributed a significant 36% of the total 6,500 establishments in the F&B industry in 2010. They were the largest employer, employing some 37,500 workers or an average of 16 workers per establishment.

 

This is just a quick glimpse into the EMD Report: Singapore Food & Beverage Industry

 

North Asia wears Indonesia’s garment!

The textile and garment industry is an important contributor to Indonesia’s economy, serving as a large source for jobs and export earnings. Being the largest textiles and apparel producers in the region, it has a long tradition of producing and exporting ready-made garment and home- fashion textiles.

Exports of manufactured goods reached USD 22.63bn in 2012, a decrease of 11.19% year-on-year. The export value of textile yarns, fabrics, and made-up articles reached USD 4.55bn in 2012, down 5.02% from USD 4.79bn a year ago. Meanwhile, the textile, leather products and footwear sectors combined were the fourth largest contributor to the manufacturing industry with a market share of 9.81% for the quarter ending December 2012.

Textile companies across north Asia, especially from South Korea, Taiwan and China, have been making significant investments in Indonesia with the aim of exporting to their home country. These foreign entrants are anticipated to boost total investment in the textile industry to about IDR 6tr (USD 702mn), according to Ade Sudrajat, Chairman of the Indonesian Textile Association.

Salient Points

• The textile, leather products and footwear sectors combined were the fourth largest contributor to the manufacturing industry with a market share of 9.81% for the quarter ending December 2012.
• The export value of textile yarns, fabrics, and made-up articles reached USD 4.55bn in 2012, down 5.02% from USD 4.79bn a year ago.
• Imports of clothing registered a staggering growth of 47.88% year-on-year in 2012. The figures in 2012 were more than doubled the USD268.88mn recorded in 2009.

Souce: CEIC

This is just a quick glimpse into the EMD Report: Indonesia Textile & Garment Industry. Learn more and purchase now>>

 

Pharmaceutical industry in Singapore sees rapid growth

Over the last decade, Singapore has established itself as the manufacturing hub for leading pharmaceutical companies in Asia. The country’s manufacturing output of pharmaceuticals and biological products grew at an impressive compounded annual growth rate (CAGR) of 15.8% over the 10-year period from 2001 to 2011. During that same period, the economic environment in Singapore had an average GDP growth rate of 6.3% per year.

The report includes the market trends and outlook of the pharmaceutical industry in Singapore. We examine the exports and imports of pharmaceutical products, key economic indicators, production index, value-added by sector, human resources, cost of operation, capital expenditure and government initiatives. Pharmaceutical sector contributed approximately 19.3% to the overall value added by manufacturing industries. The sector trailed only the electronic products sector in terms of value addition.

Also, the report encompasses the profile of leading players in the pharmaceutical industry as well as their respective financial highlights and SWOT analysis. Among the leading pharmaceutical players in Singapore are Luye Pharma Group Limited, Star Pharmaceuticals Limited and Pharmesis International Limited.

Key Findings

• The total output of pharmaceuticals and biological products in Singapore surged 20.1%  year-on-year in 2011.
• Pharmaceutical sector contributed approximately 19.3% to the overall value added to manufacturing industries.
• At the end of fourth quarter of  fiscal year 2012, the pharmaceutical manufacturing index grew by a  marginal rate of 1.1% yoy.

Total Output of Pharmaceuticals and Biological Products

Source: EDB

These are only a few of the insights in the new EMD Report : Singapore Pharmaceutical Industry. Learn more and purchase now>>

 

Short-lived growth for construction materials industry in Romania

Building materials market projected constructive performance between Jan-Aug 2012, in line with the positive development of construction sector over the period.

Construction materials production increased by 5.9% y/y in Jan-Aug and remained positive, except for February when construction activity was stalled by adverse weather conditions for several weeks.

Imports of building materials declined marginally by 1.1% y/y EUR 430.2mn in Jan-Jul 2012. However, the cement and lime segments recorded positive performance propped by infrastructure works.

Nonetheless, the expected deterioration of construction sector’s performance in H2/2012 will likely impact the building materials segment.

Non-metallic mineral products output in 2007-2012 (monthly indices, 2005=100, unadjusted series)

Non-metallic mineral products imports in 2009-2012 (monthly, EUR mn)

Much more in the Intellinews report: Romania Construction Materials Sector

 

Pharmaceutical industry in Singapore recuperating fast after Q2FY11’s ill spell

Singapore’s economy saw a period of subdued growth in last three quarters due to slowdown in exports growth. However, Singaporean pharmaceutical industry continued its V-shaped recovery in year 2012 as well. The industry recorded growth in both production as well as exports of pharmaceuticals after the global recession of late 2000s.

The country is actively being looked as the pharmaceutical hub of Southeast Asia. . It is for this reason, that more than 30 leading pharmaceutical and biomedical science companies have established regional headquarters in Singapore including GlaxoSmithKline, Merck, Roche, Abbot and Sanofi. The country is also being preferred as a manufacturing base by leading multinational pharmaceutical companies. Seven of the top ten pharmaceutical companies of the world had a manufacturing base in the country as of June 2012.

Pharmaceutical manufacturing led the manufacturing sector of in last few quarters. It has performed well compared to other sectors and has been one of the major contributors to the overall growth of manufacturing in the country in the recent past. The country also acted as a major pharmaceutical trading hub of Southeast Asia and a substantive amount of pharmaceuticals were re-exported from the country. The export growth for pharmaceuticals was greater than the overall non-oil domestic exports of the country for most part of the year 2011 and continued its resilience in first half of 2012, even amidst the global slowdown.

The outlook for Singapore pharmaceuticals is positive owing to availability of skilled manpower, presence of leading research institutions, proactive government, relaxed regulatory environment, intellectual property protection and state of the art infrastructure. Added to that, the strategic geographic location of the country will attract multinational companies to establish a base in Singapore in the years to come.

Salient Points 

• In fiscal      year 2011, Singapore pharmaceutical industry recorded a production      turnover of around USD 22bn. The total pharmaceutical production turnover      of the country grew by 20% y/y in year 2011.
• Electronic      hardware exports grew by 11% y/y and crossed SGD 21bn by the end of fiscal year 2011.
• At the end of second quarter of fiscal year 2012, the total manufacturing index grew by 4.5% on y/y basis. During the same period, the pharmaceutical manufacturing index grew by 30% y/y which was the highest among all the constituent sectors. Hence, despite the slowdown, pharmaceutical manufacturing sector of the country has shown resilience.

Chart: Index of Industrial Production (2011=100)

Source: Ministry of Trade and Industry

This is only a small extract of the insights in the Singapore Pharmaceutical Industry report; read more and purchase>>

 

Indian consumers more fascinated by imported electronic equipment

India recorded its worst GDP in the last nine years with a 5.3% growth during the fourth quarter. Mirroring this, the Indian electronics industry also suffered a minor slowdown but managed to record a y/y growth of 10%. The production turnover of the industry grew at a CAGR of more than 15% in the last six years and is expected to cross INR 1.5 tn by the end of fiscal year 2013.

The country ranks very low regarding electronic equipment manufacturing, at 1.5% of the total world production. According to Department of Electronics and Information Technology (DeitY), more than 50% demand for electronics in the country was met through imports and the figure is expected to rise to 75% by 2020.  Government of India is undertaking several initiatives to promote domestic manufacturing of electronic equipment. Under the Draft National Policy on Electronics (NPE), the Government has targeted for creation an eco-system for a globally competitive electronic system design and manufacturing sector in the country, in order to achieve a production turnover of about USD 400 Bn by 2020. The policy also targets investment of about USD 100 Bn and employment to around 28 mn people at various levels of the industry.

All six major sub-sectors of Indian electronics industry saw growth in production turnover during the fiscal year 2012. Highest growth was recorded by the electronic components and communication equipment sub-sector, while consumer electronics was slightly subdued compared to past few years. However, rising costs of raw materials and persistent inflation was negatively affecting the profitability of the sector. Major domestic players in the industry recorded a significant decline in their profit margins during the year.

The outlook for Indian electronics is positive owing to the huge domestic demand and supply gap and double digit production growth rate in almost all of its sub-sectors. The increasing population and growing per capita income will increase the size of this industry in the years to come.

Salient Points

• In fiscal      year 2012, Indian electronic industry recorded a production turnover of      around USD 30 bn. The total electronic hardware production turnover of the      country grew at a CAGR of 16.8% during the last six years
• The largest      contribution in FY12 came from communication and broadcast equipment,      which accounted for 28.3% of the total production turnover, followed by      consumer electronics with 23.9%. Together these accounted for more than      half of the entire production turnover of the industry
• Electronic      hardware exports grew at a CAGR of 28.9% during the period 2007-12 and      crossed USD 9 bn by the end of fiscal year 2012.
• During the      period January 2000 to June 2012, electronics sector received foreign      direct investment (FDI) of USD 1.17 bn, equal to 0.7% of the total FDI inflows      in the country during that period. This was low compared with the inflows to      other industrial sectors of the country. However, it grew by 19% y/y over      the June 2011 figure, suggesting rising growth in inflows in this sector.

Chart: Cumulative FDI in Electronics Sector (Since January 2000 in USD Mn)

Source: Department of Industrial Policy and Promotion (DIPP)

This is only a small extract of the insights in the India Electronics Industry report; read more and purchase>>

 

Romania’s construction sector inching to hit a double-digit annual advance in Q2

Domestic production of construction materials inched up marginally by 0.3% y/y in Jan-Apr 2012, while imports advanced moderately in Q1/2012, paralleling the positive performance of the construction sector, which increased by 3.3% y/y in Q1 and further by an outstanding 16.4% y/y in April and 21.1% y/y in May. The construction sector is likely to register double-digit annual advance in Q2, driving upwards the building materials segment.

The profitability of Romania’s construction materials sector continues to be hampered by increasing energy and raw materials prices, which add to fluctuating demand. Nonetheless, the stabilisation of the market in 2011 was visible in improving revenues of market players. The cumulated turnover of top 10 construction materials inched up by 3.8% y/y to RON 4.1bn (EUR 974.3mn) in 2011, according to our calculations based on latest official data. Notably, five of the top 10 players reported annual decline of net turnover, while three of them turned to losses in 2011.

Figure 1 Non-metallic mineral products imports in 2009-2012 (quarterly, EUR mn)

Figure 2 Major construction materials producers in 2010-2011 (net turnover, RON mn)

 These are only a few of the insights in the new IntelliNews Report: Romania Construction Materials Sector. Learn more and purchase now>>