Singapore's trade, exports down overall

Total trade last year, which includes oil products, grew by 9.2 per cent, compared with an 11.1 per cent increase in 2017. PHOTO: ST FILE

Singapore's trade and exports slowed down overall last year, though total merchandise trade grew 9.2 per cent year on year to hit a high of $1.1 trillion, crossing the trillion-dollar milestone for the first time since 2014.

But the lofty figure masks the fact that global trade tensions and weakening demand for electronics weighed heavily from the second half of last year.

Non-oil domestic exports (Nodx) grew at a slower pace of 4.2 per cent last year, down from 8.8 per cent in 2017, yesterday's data by Enterprise Singapore showed.

But fourth-quarter data told a more immediate reality: Nodx declined by 1.1 per cent year on year from October to December, a far cry from the 8 per cent growth in the previous quarter.

This was also the only quarter of last year when Nodx slipped into negative territory.

Maybank Kim Eng economist Chua Hak Bin said the full-year export figures "were lifted by strong results in the first half of the year".

The period saw a 5.2 per cent year-on-year growth in total trade, against a 3.3 per cent increase in the second half of last year.

The tit-for-tat tariffs between the United States and China began in January last year, but economists say their effects kicked in only towards the end of the year.

Overall, the growth was driven by non-electronic exports, which outweighed the decline in electronics, said Enterprise Singapore.

Non-electronic Nodx rose by 8.2 per cent last year, slowing from a 9.2 per cent increase in 2017. Electronic Nodx fell 5.5 per cent last year, reversing the 8 per cent increase seen in the preceding year.

Non-oil exports to top markets such as the United States, the European Union, Japan and Indonesia grew. But they fell to markets such as South Korea, Hong Kong, Taiwan and Malaysia.

Exports to China - Singapore's largest trading partner - shrank by 8.8 per cent from the previous year.

Total trade last year, which includes oil products, grew by 9.2 per cent, compared with an 11.1 per cent increase in 2017. Exports grew 7.9 per cent and imports grew 10.6 per cent last year.

Total services trade rose by 2.3 per cent last year to reach $500.4 billion, following an 11.7 per cent expansion in 2017.

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A version of this article appeared in the print edition of The Straits Times on February 16, 2019, with the headline Singapore's trade, exports down overall. Subscribe