Singapore’s key exports rise 20.7% in June, miss forecasts despite strong AI demand
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Singapore’s export growth of 20.7 per cent in June was slightly softer than the 28.7 per cent expansion forecast by economists in a Bloomberg poll.
PHOTO: ST FILE
- Singapore's non-oil domestic exports (NODX) rose 20.7% in June, driven by a 105.1% surge in electronics shipments, especially disk media and integrated circuits.
- Economists remain optimistic about NODX growth due to strong AI investments despite missing June forecasts and expected moderation in the second half of 2026.
- Challenges include petrochemical export headwinds from Middle East tensions delaying feedstock recovery, while NODX to top markets like Taiwan, the US and South Korea saw significant growth in June.
AI generated
SINGAPORE – Singapore’s non-oil domestic exports (NODX) rose 20.7 per cent in June, moderating from the 38.4 per cent expansion in May, as electronics shipments continued to surge.
It also missed economists’ forecast of 28.7 per cent year-on-year growth in a Bloomberg poll.
Despite the moderation in June, economists are upbeat on the near-term outlook for NODX, expecting strong AI investments to drive demand for electronics.
DBS senior economist Chua Han Teng said that NODX performance was robust in the second quarter of 2026, expanding by 27.4 per cent year on year – the strongest growth since the same period in 2010.
“The near-term outlook for NODX remains positive. NODX growth continues to be supported thanks to global artificial intelligence-related tailwinds, with strong hyperscaler investment driving robust demand for electronics products such as memory chips and server-related products.”
OCBC chief economist Selena Ling said that even if growth moderates into the second half of 2026, the bank still sees upside to its full-year NODX growth forecast of 6 per cent, given the stellar first-half performance.
“The global AI-investment momentum still appears to have some legs to run in the near term despite stock market jitters and gyrations,” she said.
Nomura chief ASEAN economist Euben Paracuelles noted that the main source of downside surprise to headline NODX growth was from volatile components such as pharmaceuticals and gold.
The firm remains bullish that the global chip super-cycle will continue to support NODX.
But DBS’ Chua said challenges remain amid renewed tensions in the Middle East. “Headwinds facing petrochemical exports will likely persist into the third quarter, as renewed tensions in the Middle East delay the recovery of feedstock supplies. A return to pre-war feedstock conditions is expected to take time, given the continued caution surrounding transit through the Strait of Hormuz,” he noted.
Feedstocks are raw biomaterials used to make other goods such as biofuels and plastics.
Electronics shipments surged 105.1 per cent year on year in June, up from 94.8 per cent growth in May, on robust demand for AI, data from Enterprise Singapore on July 17 showed.
Within the electronics segment, disk media products led the expansion, jumping 170.9 per cent, while integrated circuits rose 115.4 per cent and PCs grew 95.8 per cent.
Non-electronics shipments dipped 2.9 per cent year on year, reversing the previous month’s 17.7 per cent growth. Non-monetary gold led the drop, falling 49 per cent, while food preparations declined 38.6 per cent and petrochemicals slipped 27.9 per cent.
NODX grew 18.6 per cent in the first half of 2026.
NODX to the top 10 markets rose in June, led by Taiwan, the US and South Korea. In June, NODX to Taiwan expanded 123.3 per cent, NODX to the US rose 36.7 per cent and those to South Korea rose 62.9 per cent.
