Singapore’s key exports fall by 20.1% in August; 11th straight month of decline

SINGAPORE: Singapore’s non-oil domestic exports (NODX) contracted for the 11th consecutive month in August, falling by 20.1 per cent, with both electronics and non-electronics seeing a decline.

The drop follows a revised 20.3 per cent decrease in July and a 15.7 per cent contraction in June. The August decline is worse than a Reuters poll forecast of a 15.8 per cent drop.

According to data released by Enterprise Singapore (EnterpriseSG) on Monday (Sep 18), electronic product exports contracted by 21.1 per cent in August, following a 26.1 per cent fall in the previous month. 

Integrated circuits (ICs), disk media products and PCs contributed the most to the decline, falling by 28.5 per cent, 30.6 per cent and 25.6 per cent respectively.

Non-electronic exports declined by 19.9 per cent in August, extending an 18.5 per cent drop in July.

The biggest declines were in structures of ships and boats, pharmaceuticals, and specialised machinery, falling by 97.7 per cent, 37.7 per cent and 25.5 per cent respectively.

NODX to the top markets as a whole declined in August, although NODX to Indonesia rose, said EnterpriseSG. 

The largest contributors to the decline in NODX were the US (-32.4 per cent), the EU (-28.9 per cent) and China (-16.4 per cent). NODX to Indonesia grew by 33.2 per cent.

On a year-on-year basis, total trade declined by 15.2 per cent in August, following the 20.9 per cent contraction in the previous month. 

Both exports and imports fell, by 14.7 per cent and 15.6 per cent respectively.

Last month, Singapore narrowed its growth forecast for 2023. The Ministry of Trade and Industry (MTI) said the country’s gross domestic product for the year is expected to come in between 0.5 per cent to 1.5 per cent, narrowing from the previous 0.5 to 2.5 per cent range.

In its quarterly assessment, MTI said it sees a “weak” external demand outlook for the rest of the year.

Earlier this month, private sector economists cut their forecast for Singapore’s economic growth this year to 1 per cent, down from an earlier projection in June of 1.4 per cent.

Prime Minister Lee Hsien Loong said on Sep 7 that Singapore will not see a recession this year despite a sluggish economy, although uncertainty remains for 2024.