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<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published February 27, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>ECONOMIC SURVEY
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>S'pore's exports, FDI hit hard by global downturn
There are fears crisis may hit flows well into the medium term: MTI paper
By CHUANG PECK MING
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>THE breadth and scale of the current economic downturn has hit direct investments flowing into Singapore and exports going out harder than previous recessions, says the Ministry of Trade and Industry.
=> As if we donch know!
<TABLE cellSpacing=0 cellPadding=5 align=left border=0><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox cellSpacing=0 cellPadding=0 width=144 align=left border=0><TBODY><TR><TD vAlign=bottom>
</TD></TR><TR><TD bgColor=#fffff1><TABLE cellSpacing=0 cellPadding=0 width=124 align=center border=0><TBODY><TR><TD vAlign=top>Direct investments flowing into S'pore declined a third to $32b last year, from a record $48b in '07.
</TD></TR><TR><TD vAlign=top>
</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>'The synchronised economic downturn has hit both final and intermediate demand for Singapore's exports and across all the key export destinations,' says an MTI paper entitled 'Singapore's trade and investment trends: A comparison with past downturns'.
The paper, authored by Titus Lee, an economist in MTI's Economics and Strategy Division, appears in the Economic Survey of Singapore 2008 report.
International Enterprise Singapore also provided input for the paper.
Singapore's key non-oil domestic exports (NODX) have been sluggish since mid-2008, sinking 18 per cent year on year in the final quarter.
It plunged a further 35 per cent in January this year - the sharpest fall since 1986.
Similarly, non-oil re-exports (NORX) declined 8 per cent year on year in Q4 2008 - and 36 per cent in January 2009.
'Singapore's exports have fallen more sharply in the recent period as the current crisis is more widespread than past recessions, affecting many countries and industries,' the paper says.
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</TD></TR></TBODY></TABLE>It notes that the impact of the 1997-98 financial crisis was largely confined to Asia and was financial in nature.
'External demand, especially in the developed economies, was not as severely affected in 1997-98,' it says.
'As a result, the contraction in NODX during that period was not drastic and the recovery was relatively quick.' The 2001-2002 dot-com bust, which resulted in large-scale cancellations of electronic orders, was relatively short-lived - and Singapore's exports staged a quick rebound because of the growth in regional markets, especially China.
'Non-oil exports, in particular electronics, recorded a swift improvement in the latter half of 2002,' the paper says.
'In addition, Singapore's export recovery was aided by expansion in pharmaceutical and petrochemical exports, which recorded healthy growth in 2002.'
Direct investments flowing into Singapore declined one third to $32 billion last year, from a record $48 billion in 2007.
'Historically, weaker performance in the advanced economies has led to lower foreign direct investment (FDI) inflows to Singapore,' the paper says.
'In 1998, 2001 and 2008, advanced economies experienced economic slowdowns, and Singapore's FDI inflows fell significantly in the concurrent or subsequent years.'
It notes that global economic uncertainty, tighter credit conditions and reduced profits are likely to lead multinational corporations to cut back on investments.
'As the current downturn takes its toll, the near-term outlook for trade and investment appears bleak not only for Singapore, but also for most countries across the world,' the paper says.
=> So? To excuse the BEST PAID ministers' incompetence? To excuse the "FTrash create jobs" scam? To justify using national reserves to subsidize FTrash salaries? To justify axing Sporns and keeping FTrash? To justify free scholarships for FTrash and NS for Sporns?
'A larger concern is that this crisis may impact trade and investment flows well into the medium term.'
[/FONT]</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>ECONOMIC SURVEY
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>S'pore's exports, FDI hit hard by global downturn
There are fears crisis may hit flows well into the medium term: MTI paper
By CHUANG PECK MING
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
</TD><TD>Email this article</TD></TR><TR class=font10><TD align=right width=20></TD><TD>Print article </TD></TR><TR class=font10><TD align=right width=20></TD><TD>Feedback</TD></TR></TBODY></TABLE>THE breadth and scale of the current economic downturn has hit direct investments flowing into Singapore and exports going out harder than previous recessions, says the Ministry of Trade and Industry.=> As if we donch know!
<TABLE cellSpacing=0 cellPadding=5 align=left border=0><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox cellSpacing=0 cellPadding=0 width=144 align=left border=0><TBODY><TR><TD vAlign=bottom>
</TD></TR><TR><TD vAlign=top>
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The paper, authored by Titus Lee, an economist in MTI's Economics and Strategy Division, appears in the Economic Survey of Singapore 2008 report.
International Enterprise Singapore also provided input for the paper.
Singapore's key non-oil domestic exports (NODX) have been sluggish since mid-2008, sinking 18 per cent year on year in the final quarter.
It plunged a further 35 per cent in January this year - the sharpest fall since 1986.
Similarly, non-oil re-exports (NORX) declined 8 per cent year on year in Q4 2008 - and 36 per cent in January 2009.
'Singapore's exports have fallen more sharply in the recent period as the current crisis is more widespread than past recessions, affecting many countries and industries,' the paper says.
<SCRIPT language=javascript> <!-- // Check for Mac. var strAgent; var blnMac; strAgent = navigator.userAgent; strAgent.indexOf('Mac') > 0 ? blnMac = true:blnMac = false; if (blnMac == true) { document.write('
'); } //--> </SCRIPT><TABLE cellSpacing=0 cellPadding=4 width=300 align=right border=0><TBODY><TR><TD vAlign=top align=middle>
<!-- AdSpace --><IFRAME marginWidth=0 marginHeight=0 src="http://ads.asia1.com.sg/html.ng/site=tbto&sec=btointhenews&cat1=bnews&cat2=btointhenewsart&size=300X250" frameBorder=0 width=300 scrolling=no height=250 bordercolor="#000000"><script language='JavaScript1.1' src='http://ads.asia1.com.sg/js.ng/Params.richmedia=yes&site=tbto&sec=btointhenews&cat1=bnews&cat2=btointhenewsart&size=300X250'></script><noscript>
'External demand, especially in the developed economies, was not as severely affected in 1997-98,' it says.
'As a result, the contraction in NODX during that period was not drastic and the recovery was relatively quick.' The 2001-2002 dot-com bust, which resulted in large-scale cancellations of electronic orders, was relatively short-lived - and Singapore's exports staged a quick rebound because of the growth in regional markets, especially China.
'Non-oil exports, in particular electronics, recorded a swift improvement in the latter half of 2002,' the paper says.
'In addition, Singapore's export recovery was aided by expansion in pharmaceutical and petrochemical exports, which recorded healthy growth in 2002.'
Direct investments flowing into Singapore declined one third to $32 billion last year, from a record $48 billion in 2007.
'Historically, weaker performance in the advanced economies has led to lower foreign direct investment (FDI) inflows to Singapore,' the paper says.
'In 1998, 2001 and 2008, advanced economies experienced economic slowdowns, and Singapore's FDI inflows fell significantly in the concurrent or subsequent years.'
It notes that global economic uncertainty, tighter credit conditions and reduced profits are likely to lead multinational corporations to cut back on investments.
'As the current downturn takes its toll, the near-term outlook for trade and investment appears bleak not only for Singapore, but also for most countries across the world,' the paper says.
=> So? To excuse the BEST PAID ministers' incompetence? To excuse the "FTrash create jobs" scam? To justify using national reserves to subsidize FTrash salaries? To justify axing Sporns and keeping FTrash? To justify free scholarships for FTrash and NS for Sporns?
'A larger concern is that this crisis may impact trade and investment flows well into the medium term.'
[/FONT]</TD></TR></TBODY></TABLE>
