That compares with a 0.8% rise forecast by a Reuters survey of eight economists and a downwardly revised 3.6% increase in October.
Electronics manufacturing slumped 20.9% and pharmaceutical production declined 12.7%.
On a month-on-month and seasonally adjusted basis, industrial production fell 9.4%, after a revised 3.0% increase in the previous month. The median forecast was for a 1.1% increase, based on estimates from five analysts.
Singapore’s export-oriented economy has been hit hard this year by the prolonged trade war between the United States and China as well as a cyclical downturn in the electronics sector.
However, data for the previous two months had pointed to signs of respite, with manufacturing output having risen in September and October.
The city-state, which is expected to hold elections within months, revised up its third-quarter economic growth in November and comfortably avoided a recession that was forecast by some economists.
It will release advance GDP estimates for the fourth quarter and 2019 on Jan. 2.