Singapore and Malaysia experienced contrasting export growth in June, according to a report by Nomura Global Economics. Singapore’s non-oil domestic exports (NODX) saw a surprising increase, although the rise was modest when excluding gold exports. In contrast, Malaysia’s total export growth remained negative, primarily due to a decline in electronics exports and softer re-exports following new government regulations on transshipments.
Singapore’s Deputy Prime Minister Gan Kim Yong is currently visiting the US to discuss sectoral tariffs, whilst Malaysia’s Trade Minister Zafrul is committed to negotiating a favourable trade deal with the US. Despite the current challenges, Nomura maintains its GDP growth forecasts for 2025 at 2.6% for Singapore and 4.4% for Malaysia, although both countries are expected to see slower growth in the second half of the year.
The report highlights that electronics export growth has been softening in both countries since a surge in April, attributed to export front-loading. Singapore’s gold exports surged, but pharmaceuticals exports remained weak. Meanwhile, Malaysia’s petroleum and LNG exports continued to drag on overall growth.
Malaysia’s export growth fell further to -3.5% year-on-year in June, with electronics exports dropping to 1.3% year-on-year. Import growth also moderated, leading to a rebound in the goods trade surplus to MYR8.6bn. In Singapore, re-export growth held up, indicating potential re-routing of transshipments.
Looking ahead, both countries are expected to face challenges in maintaining export growth, with ongoing trade discussions and sectoral tariffs likely to play a significant role in shaping future economic performance.
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