Singapore’s non-oil domestic exports (NODX) saw a 24.2% year-on-year increase in July, according to UOB Global Economics and Markets Research. This growth, however, fell short of Bloomberg’s 26.5% forecast but exceeded UOB’s 22.8% estimate. The rise was primarily fuelled by a significant surge in electronics exports, which jumped 112% compared to the previous year, highlighting the impact of artificial intelligence (AI) on consumer devices.
Electronics exports experienced an 11.6% month-on-month increase, with personal computer exports soaring by 34.9% and telecommunications equipment by 17.8%. In contrast, integrated circuit exports declined by 9.9%. Non-electronics exports remained subdued, with only a 0.6% rise, despite gains in pharmaceuticals and petrochemicals.
The demand for electronics was particularly strong in markets embedded in the semiconductor value chain, such as the United States, Taiwan, and South Korea. Additionally, other markets like Thailand, India, Indonesia, and the EU27 showed increasing momentum, reflecting growing consumer demand and AI adoption among businesses.
AI-related exports are expected to continue driving growth in the second half of 2026. The July electronics Purchasing Managers’ Index (PMI) improved to 52.4, indicating resilient demand. However, the export outlook faces challenges from potential tariff enforcement, as highlighted in a recent White House report on transshipment activities.
The ongoing capital expenditure commitments by major technology firms are anticipated to support demand for AI-related hardware and peripherals through 2027, despite the looming tariff concerns.
