Maybank Research Trims Singapore 2026 GDP Growth Forecast To 3.4 Pct

SINGAPORE, March 18 (Bernama) -- Maybank Research Pte Ltd (MRPL) has revised Singapore's gross domestic product (GDP) growth forecast to 3.4 per cent in 2026, down from its earlier projection of 3.6 per cent, amid ongoing West Asia conflicts. 

It said the downside risks to the growth outlook have surfaced with the Iran war and the Strait of Hormuz blockade, which has severely disrupted commodity shipments. 

"The petrochemical sector, which accounted for 6.6 per cent of exports in 2025, faces the most pronounced impact, with output curbs due to a crunch in crude oil-derived naphtha. 

"Petrochemical exports, which have already been declining over the past 12 months, may be further impacted, but could rebound when raw material flows return," it said. 

Nevertheless, the research firm said Singapore’s industrial production is unlikely to see major energy supply disruptions, as the government recently clarified that the country’s energy supplies remain secure despite the liquefied natural gas (LNG) supply shock from West Asia. 

It noted that imported natural gas fuels 95 per cent of Singapore’s power generation, of which about 43 per cent of gas imports are piped from Malaysia and Indonesia.

"Another risk on the horizon is the United States’ Section 301 trade probes targeting Singapore on excess semiconductor manufacturing capacity and the policing of forced labour in supply chains," it added. 

-- BERNAMA