A constructive method for the design of nonlinear observers is discussed. To formulate conditions for the construction of the observer gains, stability results for nonlinear singularly perturbed systems are utilised. The nonlinear observer is designed directly in the given coordinates, where the error dynamics between the plant and the observer becomes singularly perturbed by a high-gain part of the observer injection, and the information of the slow manifold is exploited to construct the observer gains of the reduced-order dynamics. This is in contrast to typical high-gain observer approaches, where the observer gains are chosen such that the nonlinearities are dominated by a linear system. It will be demonstrated that the considered approach is particularly suited for self-sensing electromechanical systems. Two variants of the proposed observer design are illustrated for a nonlinear electromagnetic actuator, where the mechanical quantities, i.e. the position and the velocity, are not measured.