Semiconductor demand is projected to slow but not too severely.
Singapore's industrial production index (IPI) rose +10.1% in 2017, accelerating from +3.7% in 2016.
RHB Research said the IPI should remain positive in 2018, but also ease to +7.6%.
According to a report, semiconductor demand is projected to slow but not too severely, as it would be supported by higher production of radio frequency chips and testing activities.
On the upside, pharmaceutical production and offshore marine activities are expected to recover from low bases this year.