Singapore’s non-oil domestic exports (NODX) have experienced a decline for the 12th consecutive month in September. Although this decline is significant, there are signs of improvement as the contraction rate slowed compared to previous months. In this article, we explore the details of Singapore’s export performance, the contributing factors, and the outlook for the country’s trade.
Export Contraction Continues
According to data released by Enterprise Singapore (EnterpriseSG), Singapore’s NODX decreased by 13.2% in September. This marks the 12th consecutive month of contraction in the country’s exports. The decline follows a revised 22.5% decrease in August and a 20.3% decrease in July, indicating a gradual easing of the export slump.
Electronics and Non-Electronics Impacted
Both electronics and non-electronic products were affected by the export contraction. However, there are indications that the decline is decelerating. Electronics exports fell at a slower pace of 11.6% year-on-year in September, compared to a 21.1% contraction in the previous month. Key contributors to this decline included integrated circuits, personal computers, and computer parts.
Exports of non-electronic products also exhibited a slower decline, dropping 13.6% in September, compared to a 22.9% decrease in the previous month. Notable decreases were observed in non-monetary gold, pharmaceuticals, and food preparations.
Market Performance
While NODX to several markets declined, there were exceptions. Exports to China, Hong Kong, and the United States experienced growth. Notably, Taiwan, Indonesia, and Malaysia were the largest contributors to the overall decline in September’s exports, with significant contraction percentages.
Total Trade Figures
On a year-on-year basis, Singapore’s total trade contracted by 12.3% in September. This decline follows a 15.5% decrease in the previous month. Both exports and imports decreased, with exports falling by 12.7% and imports by 11.8%, respectively.
However, there is a glimmer of hope in the form of seasonally adjusted figures. Total trade increased by 4.2% in September compared to the previous month, marking an improvement from the 1.1% increase observed in August. This suggests a potential resurgence in trade activities, albeit gradual.
Outlook for Singapore’s Trade
The export decline in Singapore, while persisting for over a year, appears to be moderating. The slower contraction rate in September and the improved seasonally adjusted figures offer a ray of optimism. Singapore’s government and businesses will likely continue to explore strategies to boost exports and support economic recovery.
The trajectory of Singapore’s trade performance will be closely watched in the coming months as the country navigates through a challenging global economic landscape. Efforts to stimulate domestic and international demand, coupled with the management of external risks, will play a pivotal role in determining the nation’s economic resilience.
Also learn about Oil Prices Surge Amid Reduced OPEC+ Exports in August.
