Singapore is exploring plans to expand its gold storage capacity as it seeks to position itself as a major global bullion trading hub , targeting central bank reserves and institutional flows. Strategic Push Into Bullion Market Authorities are evaluating potential sites — including areas near Changi Airport — to enhance vaulting infrastructure for gold storage , according to sources familiar with the discussions. The Monetary Authority of Singapore confirmed it is considering the use of existing facilities for gold vaulting , though it stopped short of confirming expansion plans. The move aligns with Singapore’s broader ambition to strengthen its role in precious metals trading and financial services . Targeting Central Banks and Institutional Demand A key objective is to attract central banks , which collectively hold around 39,000 tonnes of gold , accounting for roughly 18% of global supply , according to the World Gold...
Manufacturing activity across Asia remained in expansion territory in March, but signs of slowing momentum are emerging as rising energy prices from the Middle East conflict begin to weigh on the region.
Growth Holds, but Momentum Weakens
S&P Global data showed that several economies, including South Korea, Malaysia, and Thailand, recorded improved factory activity.
- Thailand led the region with a PMI of 54.1
- Malaysia returned to expansion after a prior contraction
- South Korea also showed strong improvement
However, the broader ASEAN Manufacturing PMI slipped to 51.8, down from February’s 53.8, marking the slowest pace of expansion since September.
While still above the 50-point threshold, the data highlights a clear loss of growth momentum.
War-Driven Energy Shock Weighs on Industry
The slowdown comes as the US-Israel conflict with Iran disrupts energy markets, particularly via the Strait of Hormuz, a key global oil route.
Oil prices have surged above US$100 per barrel, increasing input costs for manufacturers, especially those reliant on oil-based raw materials.
Countries such as Vietnam, Indonesia, and Taiwan saw PMI readings ease, reflecting the early impact of higher costs and supply chain disruptions.
China Shows Resilience Amid External Pressures
Despite the challenging backdrop, China’s manufacturing sector returned to expansion in March, supported by improvements in both industrial production and services activity.
This suggests that domestic demand and policy support are helping offset external headwinds, at least in the near term.
Governments Brace for Worst-Case Scenarios
Authorities across Asia are taking precautionary steps to manage potential fallout from prolonged energy disruptions.
- South Korea has established an emergency economic task force
- The Philippines declared a national emergency
- Japan is reviewing its energy supply chains
- Narendra Modi warned of unprecedented economic challenges
These actions reflect growing concerns that prolonged conflict could trigger inflation, weaken growth, and disrupt supply chains.
Outlook: Expansion Intact, Risks Rising
While Asia’s manufacturing sector remains resilient, the outlook is increasingly tied to geopolitical developments and energy market stability.
A prolonged conflict could erode margins, dampen demand, and slow industrial activity further.
Investor Takeaways
- Asia manufacturing remains in expansion, but growth momentum is slowing.
- Rising oil prices above US$100 are increasing input costs and inflation risks.
- ASEAN PMI fell to 51.8, signalling weaker but still positive activity.
- China shows resilience, supported by domestic demand and policy support.
- Governments are preparing for worst-case energy disruptions, highlighting rising macro risks.
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