Singapore reported a fall of 3.6 per cent in its industrial production in November, mainly due to the decline in output by pharmaceutical companies. Manufacturing accounts for around 25 per cent in the economy of the city-state which declined 8.2 percent in November, according to the Economic Development Board.

Singapore's economic prospectuses are largely dependent on the revival of overseas sales. Government believes that low recovery in demand of Companies such as Stats Chippac Ltd may prove detrimental for the Singapore economy.

Alvin Liew, an economist at Standard Chartered Plc in Singapore, said, "The choppy nature of the present recovery profile indicates the volatility of pharmaceutical output and the recovery process remains gradual and not fully entrenched."

Pharmaceutical production, accounting for about 20 percent of manufacturing, declined 52.5 percent during the reporting period. However, biomedical manufacturing rose 7.4 percent in November.

Electronics production, having 26 per cent share in the total manufacturing output, rose 17.5 percent in November as compared to 17 percent gain in October.

Manufacturing is expected to rise 6.3 per cent in 2010 according to a survey released by the Monetary Authority of Singapore on December 9.