FILE PHOTO: People walk along the water as a cargo ship is seen docked at Pasir Panjang port terminal in Singapore on February 3, 2025. Singapore's non-oil domestic exports slipped 4.6 percent in July from a year earlier, government data showed on August 18, 2025 as shipments to the United States plunged by more than 40 percent. - AFP
SINGAPORE: Singapore’s key exports dropped more than expected in July, reversing from a rebound in June, as front-loading of orders dissipated towards the end of US President Donald Trump’s tariff pause on Aug 1.
Non-oil domestic exports (Nodx) contracted 4.6 per cent in July from a year ago, after a revised 12.9 per cent expansion in June, data from Enterprise Singapore (EnterpriseSG) on Aug 18 showed.
The reading was worse than the 3.8 per cent fall forecast by economists in a Bloomberg poll.
Key exports to the United States, Singapore’s single-largest export market, plunged 42.7 per cent, while shipments to China fell 12.2 per cent and dropped 32.2 per cent to Indonesia.
OCBC chief economist Selena Ling on Aug 12 flagged key risks around continued economic uncertainty pertaining to the tariff situation and the risk of sectoral tariffs.
The tapering of front-loading activities and resumption of reciprocal tariffs from Aug 7 could weigh on global economic activity and trade, she said.
Ling added that the crystal ball remains murky for now as Singapore still faces a 10 per cent reciprocal tariff for exports to the US, with the bigger question whether there will be an exemption or concessions given for potential higher tariffs on semiconductors and pharmaceuticals.
“The impact of 100 per cent semiconductor tariffs is not negligible per se, but there may be company-level exemptions granted for firms that move production back to the US,” said Ms Ling.
“Therefore, the question is then how much of such production may then reshore back to the US? At this juncture, it is still very uncertain – as what we have seen with the reciprocal tariffs, the eventual semiconductor tariff level may well change and the firm exemption list may also evolve,” she said.
In July, shipments of electronic products increased 2.8 per cent year on year, down from the eight per cent growth in the previous month.
Personal computers grew 80.4 per cent and bare printed circuit boards 25.8 per cent. Integrated circuits, or chips, were up eight per cent. These three segments contributed the most to the increase in electronics shipments.
Non-electronics shipments fell 6.6 per cent in July, reversing the 14.4 per cent jump in the previous month.
Pharmaceuticals shrank 18.9 per cent while food preparations fell 26.3 per cent. Petrochemicals were down 23.4 per cent.
Non-monetary gold exports rose 104 per cent, while specialised machinery rose 22.4 per cent.
The 42.7 per cent contraction in key exports to the US, following the 4.8 per cent decrease in June, was largely driven by pharmaceutical exports, which sank 93.5 per cent.
Specialised machinery dropped 45.8 per cent and food preparations were down 48.8 per cent.
EnterpriseSG on Aug 12 kept its 2025 key exports’ forecast at the lower end of a one to three per cent range, in anticipation of a weaker second half year. This is after Nodx grew 7.1 per cent in the first half of 2025.
The trade agency said that continued economic uncertainty amidst the evolving tariff situation could dampen demand from key trading partners, while sector-specific tariff risks remain. - The Straits Times/ANN
