Tariff issue: A cargo ship is seen docked at the Pasir Panjang port. Despite a drop in May, Singapore’s key exports still grew by 3.7% in the first five months of this year. — AFP
SINGAPORE: Singapore’s key exports suffered a surprise drop in May, led by a double-digit plunge in shipments to the United States.
Non-oil domestic exports (Nodx) slid 3.5% year on year, reversing a 12.4% rise in April, data from Enterprise Singapore (EnterpriseSG) showed yesterday.
While electronics exports grew, non-electronic shipments declined.
Analysts polled by Reuters had forecast May key exports to rise by 8%.
Expectations were that the front-loading of export orders would continue while a 90-day tariff truce with the Trump administration lasted.
In May, EnterpriseSG said it expected growth in key exports to come in at the lower end of its 1% to 3% forecast this year due to developments regarding trade and tariffs clouding the global outlook.
The United States announced a 90-day suspension of global reciprocal tariffs, excluding China, on April 9.
The same reprieve was extended to electronics on April 12.
The United States and China subsequently announced on May 12 a deal to slash tariffs, which also lasts 90 days.
This saw tariffs on US exports to China cut to 10% from 125%, while duties on Chinese exports to the United States were lowered to 30% from 145%.
Trade and Industry minister Gan Kim Yong said in May that the United States was not going to budge on its baseline 10% tariff on Singapore exports but the government was still negotiating for concessions on pharmaceuticals that US President Donald Trump has also threatened to slap levies on.
Pharma shipments make up more than 10% of Singapore’s exports to the United States.
Despite the Nodx drop in May, Singapore’s key exports still grew by 3.7% in the first five months of this year, extending the 2.4% expansion recorded in the last quarter of 2024.
In May, growth was bolstered by electronics exports, which increased by 1.7%, moderating the growth of 23.4% in the previous month.
Personal computers grew 50.9%, while integrated circuits, or chips, grew by 4.3%. Consumer electronics exports grew 49%.
Meanwhile, non-electronics exports declined by 5.3% in May, after growing 9.3% in the previous month.
Petrochemicals fell by 17.8%, while non-monetary gold declined by 25.9%. Specialised machinery also contracted by 11.7%.
When broken down according to Singapore’s exports to its top 10 markets, exports to the United States fell by 20.6% in May.
This was after shipments to the United States increased by 1.2% in April.
Specialised machinery exports to the United States fell 49.2%, while food preparations dropped 35.7%, and miscellaneous manufactured articles fell 41%.
Exports to Thailand also fell, by a smaller 17%, on the back of a drop in personal computers, food preparation and non-monetary gold.
Meanwhile, exports to Malaysia slid 7.6%, also due to non-monetary gold, other computer peripherals and primary chemicals.
On the other hand, exports to Taiwan, Indonesia, South Korea and Hong Kong grew. — The Straits Times/ANN
