Singapore’s non-oil domestic exports surprise on downside

SINGAPORE - Singapore’s August non-oil domestic exports fell 6.2% y/y, surprising markets. ANZ Bank says the contrast between Singapore’s non-oil domestic export (NODX) and re-export (NORX) growth signals that external demand conditions in the region remain on an improving trend, but domestically-produced exports in Singapore are not benefitting, yet.

Electronic shipments fell 9.2% y/y, compared to a downward revision to -11.1% in July (previously -7.6%). The decline in exports was largely due to PC parts
(-23.5% y/y), disk media products (-16.9%), and ICs (-14.6%). Non-electronic product shipments fell 4.7% y/y from 2.9%, weighed down by pharmaceutical (-31.1%) exports.

Non-oil re-export growth (NORX) showed a further rebound, up 14.4% y/y, from 8.1% the previous month (Figure 3). The increase was driven by both electronics (+25.1%) and non-electronics (+4.7%). By destination, domestic shipments to the EU continue to languish, while exports to Korea and Taiwan were also weak, offsetting positive growth to China and Hong Kong. Exports to EU (-20.8%); Korea (-39.2%); and Taiwan (-11.2%) were the main drags on NODX.  www.live.anz.com (ATI).