Singapore’s non-oil domestic exports (NODX) experienced a notable decline of 3.5% year-on-year in May, according to a report by UOB Global Economics and Markets Research. This figure fell short of Bloomberg’s consensus estimate of a 7.8% increase and was closer to UOB’s own projection of a 2.3% rise. The data suggests a softening in front-loading momentum, with both overall non-oil re-exports (NORX) and electronics NORX showing a marked slowdown.
The electronics sector, a significant component of Singapore’s exports, saw its NODX growth slow to 1.7% year-on-year in May, down from 23.4% in April. This was largely due to weaker exports of personal computers and integrated circuits. Non-electronics NODX also contracted by 5.3%, with petrochemicals, non-monetary gold, and specialised machinery contributing most to the decline. However, pharmaceutical exports remained positive, possibly due to concerns over potential US tariffs.
The report highlighted that NODX to six out of Singapore’s top ten markets contracted, with exports to the US dropping by 20.6% year-on-year. Electronics exports to South Korea and Taiwan also eased significantly, indicating fatigue from earlier front-loading activities.
In light of these developments, UOB has adjusted its full-year 2025 NODX forecast to a range of 1.0-3.0%, down from the previous 2.0-4.0%. The bank cited concerns over potential new unilateral tariff rates and escalating geopolitical tensions in the Middle East as factors that could further impact trade activity in the second half of 2025.
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