Singapore’s Key Exports Show Continued Growth, but Below Analysts’ Expectations
According to data released by Enterprise Singapore on Oct 17, Singapore’s non-oil domestic exports (Nodx) expanded for the third consecutive month in September, albeit at a slower pace compared to previous months.
Overall Export Growth
- Nodx rose by 2.7% year on year in September, following a 10.7% increase in August and a 15.7% rise in July.
- Analysts had anticipated a growth rate of 9.1%, indicating that the actual expansion fell short of expectations.
Electronic Exports
Electronic exports increased by 4% in September, a significant drop from the 35.1% growth seen in the previous month. Key highlights include:
- Disk media products surged by 64.6%.
- Personal computers experienced a growth of 55%.
- Integrated circuits saw a modest increase of 4.8%.
Non-Electronic Shipments
Non-electronic shipments grew by 2.3% in September, following a 3.6% rise in the previous month. Notable increases include:
- Pharmaceutical exports expanded by 35%.
- Specialised machinery grew by 12.9%.
- Other speciality chemicals rose by 46.2%.
Month-on-Month Performance
On a seasonally adjusted basis, Nodx increased by 1.1% in September, reversing the previous month’s decline of 4.7%. While non-electronics grew, electronic shipments decreased.
In terms of value, Nodx reached $14.9 billion in September, slightly higher than August’s $14.7 billion and significantly above the $14.2 billion recorded in September 2023.
Top Markets and Contributors to Growth
In September 2024, exports to top markets collectively grew, although shipments to the United States, Hong Kong, Japan, and China declined. The major contributors to Nodx growth were the European Union 27, Indonesia, and South Korea.
Exports to EU 27:
- Grew on the back of pharmaceuticals, other speciality chemicals, and petrochemicals.
Exports to Indonesia:
- Expanded due to telecommunications equipment, measuring instruments, and petrochemicals.
Exports to South Korea:
- Grew as a result of specialised machinery, integrated circuits, and personal computers.
Analysis of Singapore’s Export Performance
Despite the continued growth in Singapore’s key exports, the slower pace in September raises concerns about the resilience of the economy. The lower-than-expected expansion indicates potential challenges in the global market landscape, affecting Singapore’s trade relationships and economic stability.
Investors and policymakers should closely monitor future export data to assess the country’s economic health and make informed decisions regarding investment strategies and policy measures. Understanding the trends in electronic and non-electronic exports, as well as the performance in key markets, is crucial for predicting Singapore’s economic trajectory and identifying opportunities for growth.