17-7-2023 (SINGAPORE) Singapore’s non-oil domestic exports (NODX) contracted for the ninth consecutive month in June, with a decline of 15.5 percent. Both electronics and non-electronics sectors experienced a decrease, following a 14.8 percent drop in May and a 9.8 percent contraction in April.
Although the latest figure was slightly better than the forecast of a 15.8 percent drop in a Reuters poll, the continuous decline is cause for concern.
Data released by Enterprise Singapore (EnterpriseSG) on Monday revealed that electronic product exports contracted by 15.9 percent in June, compared to a 27.2 percent decline in the previous month. The decline in electronic product exports was mainly driven by decreases in integrated circuits (ICs), PCs, and PC parts, which fell by 31.8 percent, 44.2 percent, and 44.8 percent, respectively.
Non-electronic exports also declined by 15.4 percent in June, following a 10.7 percent drop in May. The largest declines in the non-electronics sector were seen in petrochemicals, pharmaceuticals, and primary chemicals, which fell by 34 percent, 29.5 percent, and 61.8 percent, respectively.
EnterpriseSG noted, “NODX to the top markets as a whole declined in June 2023, though NODX to Hong Kong and China rose.”
The decline in NODX was primarily driven by key markets such as Malaysia (30.7 percent decrease), Indonesia (35.7 percent decrease), and South Korea (24.2 percent decrease).
On a year-on-year basis, total trade declined by 19.2 percent in June, following a 17.9 percent contraction in the previous month. Both exports and imports saw significant declines, with a 17.2 percent drop in exports and a 21.4 percent drop in imports.
These export figures come at a time when Singapore’s economy narrowly avoided a technical recession, as second-quarter advance estimates showed a modest growth of 0.3 percent on a quarter-on-quarter basis.
