Singapore’s non-oil domestic exports experienced a drastic fall of 20.7% in March compared to the same period last year. This substantial decline was unexpected, with economists anticipating a much smaller decrease of 7%. The sharp drop in exports marks the largest recorded since January 2023, painting a bleak picture for Singapore’s trade industry.
The decline in non-oil domestic exports can be attributed to decreases in both electronics and non-electronics exports, with pharmaceutical exports also taking a hit. Electronic exports saw a dip of 9.4%, while non-electronic exports plummeted by a significant 23.2%. Notably, Singapore’s top export markets, including the U.S., the European Union, and Japan, experienced declines in non-oil domestic exports during March.
The repercussions of the export plunge extended to Singapore’s total trade, which decreased by 1.8% year-on-year in March. This downturn follows a 3.5% increase in the previous month. Both exports and imports saw declines, with exports falling by 3.4% and imports by 0.1%. The overall decrease in trade activity further underscores the challenges faced by Singapore’s economy.
Economists, such as Shena Yue from Oxford Economics, remain cautious about Singapore’s export outlook. Yue highlighted that the recent growth in exports has been largely driven by re-exports, while domestically produced goods have struggled to gain traction. With tight monetary policies in key export destinations like the U.S. and the EU, global economic growth is expected to remain subdued, impacting import demand and, subsequently, Singapore’s export performance. As a result, it is unlikely that goods exports will significantly boost Singapore’s GDP growth this year.
Singapore’s non-oil domestic exports have witnessed a sharp and unexpected decline, raising concerns about the country’s trade prospects. The challenges posed by the slump in exports, coupled with the broader economic conditions, call for a cautious approach and proactive measures to mitigate the impact on Singapore’s economy.