SINGAPORE — The Republic's non-oil domestic exports (Nodx) grew by 15.5 per cent in May, extending a 11.8 per cent growth in the previous month.

The growth was due to an increase in non-electronic exports which outweighed the decrease in electronics, said an Enterprise Singapore press release on Monday (June 18).

Non-oil exports to the Republic's top markets grew as a whole in May, with expansion led by the European Union, the United States and Japan.

Meanwhile, non-oil re-exports grew by 4 per cent in May, after a 8.2 per cent increase in April. Both electronic and non-electronic re-exports rose.

Total trade rose over the year in May, supported by both export and import growth.

UOB senior economist Alvin Liew said in a research note that last month’s stellar Nodx performance “will bode well” for Singapore’s growth outlook in the second quarter of this year.

However, Mr Liew said the bank is maintaining its Nodx growth forecast for 2018 at 6.5 per cent, compared to last year’s 8.8 per cent, given that escalating trade tensions — including between the US and China — are “clouding the outlook for a very trade-dependent Singapore”, among other factors.

Agreeing, SIM Global Education senior lecturer Tan Khay Boon said the May performance “provides a stronger basis for Singapore to achieve a reasonable growth this year”. 

“However, the possible trade war triggered by the US and China, both of which are important export markets for Singapore, casts doubt on the sustainability of a good trade performance,” he said.

He added: “The looming trade war between the US and China and the potential trade restrictions between the US and other economies are the major risks to Singapore’s export performance in the near future.”

Mr Liew also pointed out that part of May’s Nodx performance was due to a two-month surge in the volatile pharmaceutical sector. “The other sobering factor is the continued decline in electronics Nodx which is seeing high base effects already started to kick in materially,” said Mr Liew, adding that the “very strong export growth rates” in April and May are unlikely to be sustained in the second half of the year.