All sectors except for precision engineering showed gains in output, with pharmeceuticals as well as electronics turning around from big falls in February.

For the first quarter to March, total manufacturing output was 3.1 percent up from a year ago. The figures were dragged down by a suprise fall of 10.8 percent in February, revised from an original drop of 10.2 percent.

Last month's performance was in line with economists' expectations of an 8.3-8.8 rise in industrial output.

However, the Economic Development Board (EDB) said that, on a monthly basis, manufacturing output still contracted by 1.7 percent in March.

For March alone, the electronics cluster grew 19.1 percent year-on-year, reversing a decline of 3.7 percent in February, boosted by strong growth in the data storage, and infocomms and consumer electronics segments.

The EDB said production of disk drives expanded 57.4 percent while strong output of mobile personal computers and handsets were the main drivers of a 74.7-percent rise in infocomms and consumer electronics.

Chua Hak Bin, a senior regional economist at DBS Group in Singapore, said the rebound in electronics was a good sign for the trade-led economy.

"Really what we should get out of this is that the electronics recovery is quite strong in March," Chua said.

"I think this suggests that the downturn in the (global) electronics cycle has bottomed out and is recovering, and this augurs well for the (local) economy."

The electronics industry is the largest component in the manufacturing sector and makes up more than half of Singapore's key non-oil domestic exports to the world's major economies.

The manufacturing sector in turn is the lynchpin of the Singapore economy, accounting for almost a quarter of annual gross domestic product of 160 billion Singapore dollars (97 billion US).

Leslie Tang, an economist at UOB Kay Hian brokerage, also said the stronger electronics figures in March were an important pointer for Singapore's economy.

"I think it's good for Singapore ... it signals we may have reached the bottom in the global tech sector," said .

"It's very important that electronics returned to growth."

The traditionally volatile biodmedical manufacturing cluster rose 1.1 percent in March after a decline of 52 percent in February.

The pharmaceuticals segment alone grew 1.5 percent year-on-year in March following a 63.6-percent fall.

The February figures had led economists to cut their growth figures for Singapore this year, while the Monetary Authority of Singapore has since said the economy is likely to grow at the lower end of its 3.0-5.0 percent forecast.

Chua from DBS said he was maintaining his 2005 growth forecast at 4.2 percent.

Singapore share prices closed 0.57 percent higher on Tuesday partly in reaction to the manufacturing data, with the Straits Times Index climbing 12.25 points to 2,149.64.

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