Singapore’s NODX experienced a significant rebound in August, increasing by 10.9% month-on-month seasonally adjusted, after two months of decline. This growth translated into a 46.2% year-on-year rise, surpassing forecasts from both Bloomberg and UOB, which were 35.1% and 35.2% respectively. The recovery suggests that the earlier weakness in semiconductor exports observed in June and July was temporary, according to UOB Global Economics and Markets Research.
Electronics exports led the charge, with a 14.4% month-on-month increase. Integrated circuit exports notably rebounded by 24.6%, whilst personal computer exports rose by 29.4%. However, exports of PCB assemblies, telecommunications equipment, and consumer electronics saw a decline, moderating from previous gains.
Non-electronics exports remained subdued, falling by 9.2% month-on-month. Petrochemical exports dropped by 8.8%, reflecting developments in the Middle East, whilst pharmaceutical exports saw a modest increase of 7.1%.
By destination, electronics exports to key markets like the United States, Taiwan, and South Korea remained robust, with significant year-on-year growth. Demand also strengthened in markets such as India, Indonesia, and the EU27, driven by the rising adoption of AI solutions.
Despite the positive outlook, UOB cautioned that calls to slow AI development could impact the electronics and semiconductor sectors. However, increased cybersecurity requirements and controls on AI could support chip demand. Additionally, rising global yields and fiscal risks may affect global investments and Singapore’s exports.
