Addressing Risks of Disproportionate Growth in Electronics Manufacturing versus Domestic-facing Sectors and Measures to Mitigate Concentration Risks

Mr Shawn Loh asked the Minister for Trade and Industry (Energy and Industry) in light of stellar overall GDP growth rates (a) whether the Ministry has assessed new concentration risks arising from disproportionately high growth in the electronics manufacturing sector while tepid growth is observed in domestic-facing sectors; and (b) if so, whether there are strategies to mitigate these concentration risks.

Dr Tan See Leng: Singapore's economy is well diversified. In 2025, services accounted for around 70% of gross domestic product (GDP) across wholesale trade, finance and insurance, transportation and storage, and information and communications. Manufacturing, which includes electronics, accounted for 18.5% of GDP. Growth in the second quarter of 2026 was broad-based, with manufacturing, wholesale trade, finance and insurance, and information and communications growing by 12.5%, 8.3%, 6.2% and 5.0%, respectively.

Nonetheless, we are mindful of the risks of becoming reliant on any particular sector, firm or end-market, and will continue to monitor for potential concentration risks closely.