Singapore cuts exports outlook again

SINGAPORE — Trade promotion agency IE Singapore has revised its full-year non-oil domestic exports (NODX) forecast for the second time this year, after external demand remained anaemic in the third quarter.

The forecast was revised to between 0.5 and 1.0 per cent. This is lower than the 1 to 2 per cent forecast in August and the initial 1 to 3 per cent forecast.

“The slight downgrade is just to recognise the fact that the third quarter numbers (for NODX) did turn out to be weaker-than-expected … because obviously the external environment has been rather sluggish,” said Ms Yong Yik Wei, director for economics division at the Ministry of Trade and Industry.

Shipments from Singapore fell by 3 per cent year-on-year for the third quarter, contrasting with the 2.1 per cent growth the preceding quarter. The decline was due to lower demand for non-electronic products, which outweighed a rise in exports of electronic products.

In the three months to September, exports of non-electronic products declined by 4.9 per cent on-year, reversing from the 2.9 per cent expansion the preceding quarter. The decline was mainly due to lower shipments of petrochemicals, printed matter and primary chemicals, IE said.

The export of electronic products expanded by 1.8 per cent on-year, following the flat growth in the previous quarter. The growth is attributed to higher exports of personal computers, integrated circuits and telecommunications equipment.

For next year, NODX is forecast to grow at a broadly similar pace of 0 to 2 per cent, against the backdrop of an “expected continued moderation in China’s economic growth even as advanced economies improve modestly,” IE Singapore said.