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Singapore’s exports slump 9.9% in January
Non-electronic exports shrank 13.9 per cent, while electronic exports declined by 0.6 per cent, according to IE Singapore.
By Patrick John Lim
Posted 17 Feb 2016 08:30 Updated 17 Feb 2016 23:37
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SINGAPORE: Non-oil domestic exports (NODX) in Singapore slumped again last month, hit by another sharp decline in non-electronic exports, according to latest figures released by International Enterprise (IE) Singapore on Wednesday (Feb 17).
On a year-on-year basis, NODX shrank 9.9 per cent in January, following a 7.2 per cent contraction in December.
Among Singapore's key markets, exports to China were among the worst hit, falling by 25 per cent.
Economists say this is due to the on-going restructuring of the Chinese economy.
ANZ Economist Ng Weiwen said: "Since post crisis what we're seeing is that this regional supply chain has reconfigured, altered quite significantly, with China actually embracing this vertical integration domestically rather than regionally. Hence, we are seeing structural headwinds rather than the tailwinds we've been seeing in the previous decade. And this is likely a dynamic that will continue to persist in the coming decade."
DECLINE IN EXPORTS LED BY PETROCHEMICALS
Exports of non-electronic products contracted by 13.9 per cent, after falling 10.3 per cent the previous month. The decline was led by petrochemicals, which fell by 18.3 per cent, as well as pumps (-72.3 per cent) and primary chemicals (-45.8 per cent).
Economists said the fall in petrochemicals was partly due to low oil prices - a key input for the sector.
Mr Jeff Ng, an economist at Standard Chartered, said given the relative price movements between crude oil and petrochemicals, margins may be higher in petrochemicals but overall values have dropped due to price decreases.
"I think going forward, because oil prices continue to trend lower and trying to stabilise at current low levels the trend could continue and at least until the oil price rebounds."
Meanwhile, electronic exports declined by 0.6 per cent, after a 0.3 per cent decrease in December. The contraction was largely due to ICs (-15 per cent), parts of PCs (-8.8 per cent) and disk drives (-23.3 per cent).
Exports to all of Singapore’s top 10 markets – except the European Union and Malaysia – fell in January.
Non-oil re-exports (NORX) also saw a sharp decline in January, contracting 12 per cent compared to the 0.8 per cent growth the previous month, the agency said.
Electronic re-exports slumped 15 per cent, following a 3.5 per cent decline in December. The contraction was due to ICs (-22.9 per cent), parts of PCs (-16.3 per cent) and parts of ICs (-29 per cent).
Non-electronic re-exports shrank 8.4 per cent, compared to a 5.8 per cent growth the previous month. The decline was due to nickel (-58 per cent), non-monetary gold (-85.5 per cent) and piston engines (-38.3 per cent), IE Singapore said.
Looking ahead, economists said Singapore's exports are likely to be weak in the first half, with growth for the full year forecast to come in at around zero to 1 per cent.
- CNA/cy
Singapore’s exports slump 9.9% in January
Non-electronic exports shrank 13.9 per cent, while electronic exports declined by 0.6 per cent, according to IE Singapore.
By Patrick John Lim
Posted 17 Feb 2016 08:30 Updated 17 Feb 2016 23:37
VIDEOS
PHOTOS
Please enable Javascript to watch this video
Email More
A A
SINGAPORE: Non-oil domestic exports (NODX) in Singapore slumped again last month, hit by another sharp decline in non-electronic exports, according to latest figures released by International Enterprise (IE) Singapore on Wednesday (Feb 17).
On a year-on-year basis, NODX shrank 9.9 per cent in January, following a 7.2 per cent contraction in December.
Among Singapore's key markets, exports to China were among the worst hit, falling by 25 per cent.
Economists say this is due to the on-going restructuring of the Chinese economy.
ANZ Economist Ng Weiwen said: "Since post crisis what we're seeing is that this regional supply chain has reconfigured, altered quite significantly, with China actually embracing this vertical integration domestically rather than regionally. Hence, we are seeing structural headwinds rather than the tailwinds we've been seeing in the previous decade. And this is likely a dynamic that will continue to persist in the coming decade."
DECLINE IN EXPORTS LED BY PETROCHEMICALS
Exports of non-electronic products contracted by 13.9 per cent, after falling 10.3 per cent the previous month. The decline was led by petrochemicals, which fell by 18.3 per cent, as well as pumps (-72.3 per cent) and primary chemicals (-45.8 per cent).
Economists said the fall in petrochemicals was partly due to low oil prices - a key input for the sector.
Mr Jeff Ng, an economist at Standard Chartered, said given the relative price movements between crude oil and petrochemicals, margins may be higher in petrochemicals but overall values have dropped due to price decreases.
"I think going forward, because oil prices continue to trend lower and trying to stabilise at current low levels the trend could continue and at least until the oil price rebounds."
Meanwhile, electronic exports declined by 0.6 per cent, after a 0.3 per cent decrease in December. The contraction was largely due to ICs (-15 per cent), parts of PCs (-8.8 per cent) and disk drives (-23.3 per cent).
Exports to all of Singapore’s top 10 markets – except the European Union and Malaysia – fell in January.
Non-oil re-exports (NORX) also saw a sharp decline in January, contracting 12 per cent compared to the 0.8 per cent growth the previous month, the agency said.
Electronic re-exports slumped 15 per cent, following a 3.5 per cent decline in December. The contraction was due to ICs (-22.9 per cent), parts of PCs (-16.3 per cent) and parts of ICs (-29 per cent).
Non-electronic re-exports shrank 8.4 per cent, compared to a 5.8 per cent growth the previous month. The decline was due to nickel (-58 per cent), non-monetary gold (-85.5 per cent) and piston engines (-38.3 per cent), IE Singapore said.
Looking ahead, economists said Singapore's exports are likely to be weak in the first half, with growth for the full year forecast to come in at around zero to 1 per cent.
- CNA/cy
