SINGAPORE: Singapore’s key exports saw a notable rebound in February, recovering from the slowdown experienced during the Chinese New Year (CNY) period in January. According to data released by Enterprise Singapore on March 17 featured in The Star, non-oil domestic exports (NODX) grew by 7.6% year-on-year (y-o-y) in February, reversing the 2.1% contraction recorded in January.
While the February increase was positive, it fell slightly short of economists’ expectations. A Reuters poll had forecasted an 8.3% growth. However, Enterprise Singapore highlighted that when accounting for the differing timings of the Chinese New Year across the months, NODX showed a more modest 2.3% increase in aggregate for January and February.
On a seasonally adjusted monthly basis, February’s NODX rose by 4.5%, marking a recovery after a revised 3.3% dip in January.
The February performance was driven by strong growth in electronics exports, which rose by 6.9% y-o-y. This was a continuation of the 9.5% growth seen in January. Key drivers included robust demand for disc media products, integrated circuits, and personal computers.
Meanwhile, non-electronic exports surged by 7.8% y-o-y in February, a significant turnaround from the 4.8% decline in January. Notably, non-monetary gold saw a remarkable 106.9% increase, reflecting heightened safe-haven demand amid ongoing global uncertainties. Measuring instruments grew by 23.1%, and other specialty chemicals rose by 37.5%.
Non-monetary gold, which includes gold in forms such as coins, bars, and powder (distinct from the monetary gold traded by central banks), plays a critical role in the semiconductor industry, used in thin bonding wires and coatings for chips.
The recovery in NODX was geographically mixed. Exports to the United States surged by 21.5% in February, following a strong 27.8% rise in January. This growth was driven by shipments of non-monetary gold, food preparations, and medical apparatus. Exports to Taiwan also jumped by 77.9%, building on a 48.3% increase in January, thanks to demand for specialized machinery and chemicals.
Exports to the European Union increased by 16.7%, recovering from a 7.3% dip in January, with pharmaceuticals and measuring instruments leading the charge. However, shipments to China, Hong Kong, and Indonesia showed a decline. Exports to China fell by 27.4%, although this was a marked improvement from the 48.5% drop in January.
Overall, Singapore’s total trade grew by 4.6% in February, following a revised 6.6% growth in January. Looking ahead, Enterprise Singapore has forecast NODX to grow by 1% to 3% this year, after a modest 0.2% expansion in 2024. This recovery offers optimism for the city-state’s export-driven economy, despite the challenges posed by global uncertainties and shifts in trading patterns.