Industrial and Logistics Market Update Q1 2025

Key Highlights

• In the first quarter of 2025, based on advance estimates from the Ministry of Trade and Industry (MTI), the Singapore economy grew 3.8% y-o-y but contracted 0.8% q-o-q. On a yearly basis, the manufacturing sector expanded 5.0% in Q1 2025, supported by expansions across most manufacturing clusters.
  
  
• As tariffs and retaliatory tariffs slow global trade flows, Singapore's manufacturing, electronics, and logistics sectors are expected to be impacted given the country’s heavy reliance on exports and global trade. In the industrial market, the immediate impact will be delays and declines in transaction volume as buyers and enterprise occupiers move into a state of pause
  
  
• For an export manufacturing economy such as Singapore the impact of the sweeping tariffs in the immediate-term could cause factory rental growth downwards from the original 1% to 3% in 2025 to 0% to 2%.
  
  

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