Singapore’s key exports decline at a much slower pace in June

Singapore’s key exports decline at a much slower pace in June

Channel NewsAsia - Saturday, July 18

SINGAPORE: Singapore’s key exports contracted for a straight 14th month in June, although the decline was at a slower pace than the month before.

Non—oil domestic exports decreased by 11 per cent, compared to the same period a year ago. When compared to the previous month, exports fell by 5.2 per cent, reversing the gain seen in May.

After a strong performance in April and May, the pharmaceuticals sector saw a pullback in June. Shipments grew by just 1.1 per cent on—year — down significantly from the more than 40 per cent jump the previous two months.

Economists said this may weigh on the months ahead.

Philip McNicholas, economist, IDEAglobal, said: "Unless it explodes again this July, that’s going to drag on the entire reading."

Meanwhile, the key electronics sector remains weak. Exports fell by 21.5 per cent from a year earlier due largely to weak shipments of semiconductors, personal computer parts and telecommunications equipment.

But there is optimism that the worst may well be over.

Leon Perera, group managing director, Spire Research and Consultancy, said: "We expect that electronics demand should pick up at the end of the third quarter or early part of fourth quarter because there is pent—up demand that is going to come into the system. There are cyclical reasons why electronics will trend upwards, but it’s still weak at the moment."

"Looking at the absolute numbers for the region, they’ve actually been pretty flat... suggesting perhaps that things have bottomed out," said Mr McNicholas.

Overall in June, shipments to all of Singapore’s top ten markets fell in May, except for Taiwan. The one bright spot is the US as exports there fell by a smaller 5.2 per cent — much better than the 35.2 per cent decline in May.

What the decline shows, analysts said, is that despite some positive numbers, there is still no clear indication of a sustained recovery. Going forward, we can expect to see fluctuations in terms of jagged trend lines over the next three to four months.

Singapore’s monthly exports numbers are closely watched because the economy is heavily dependent on trade.

— CNA/so

- wong chee tat :)