Singapore’s trade outlook remains bleak as RHB Bank’s latest report highlights a persistent slowdown in non-oil domestic exports (NODX) for the rest of the year. The report, attributed to Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, notes that NODX slumped 11.3% year-on-year in August, following a revised 4.7% decline in July, falling short of market expectations for a 0.8% growth.
The report identifies several risks contributing to the declining momentum in NODX. These include uncertain global tariff developments, the diminishing impact of previously front-loaded trade, and Singapore’s structural reliance on semiconductor and pharmaceutical exports. These factors are expected to continue exerting pressure on the country’s export performance.
Gan emphasised the challenges ahead, stating, “We remain cautious on Singapore’s trade outlook, as the slowdown in NODX momentum is expected to persist through the remainder of the year.” The report suggests that the rapid fading of earlier trade boosts and ongoing global economic uncertainties could further exacerbate the situation.
As Singapore navigates these challenges, the report serves as a reminder of the vulnerabilities in its export-dependent economy. The continued weakness in NODX could have broader implications for the nation’s economic growth and trade strategies in the coming months.
