This is for the fifth consecutive month that the index has come in above 50-point mark that separates expansion from contraction. That helped the country's to grow close to 7 percent in the first nine months of 2017.
Ireland's economy is nearly certain to have been the strongest performer in Europe for the fourth straight year, while unemployment has been on a steady downtrend since 2011.
The performance was driven by a growth in new orders, with December's level of production the strongest in the current 17 month sequence of growth, and third-fastest in the Investec Manufacturing PMI Ireland surveys history.
Overall business confidence rose and reached an eight-month high.
However, full-year growth was still the fastest in three years at 3.5 percent, raising the possibility that the Monetary Authority of Singapore (MAS) could tighten its exchange rate-based monetary policy this year.
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Among components, output, new orders and employment all recorded historically marked growth in December.
"A lingering concern is that supply-side constraints pose a risk to the sector's ability to kick on", Smith said, adding that huge delivery delays would inevitably be borne out by sustained upward pressure on input costs.
The World Bank expects the government's policy tightening to slow annual economic growth to 6.4% next year and 6.3% in 2019.
The Nikkei Malaysia Manufacturing PMI said business conditions in the Malaysian manufacturingsector broadly stagnated in December, following an improvement in November.
The NBS also said that China's official nonmanufacturing PMI rose to 55 in December, up from 54.8 in November. The geographic distributions of the companies covered in the two polls are also different. The level of new contracts received from overseas - mainly from Asia, the United States and Europe - rose at the fastest rate in the history of the survey. The Caixin China General Services Business Activity Index will be published on Thursday.