Singapore’s Non-Oil Domestic Exports (NODX) experienced a significant rise in May, marking a 38.4% year-on-year increase, according to UOB Global Economics and Markets Research. This surge surpassed Bloomberg’s median forecast of 30.5% and UOB’s own projection of 36.8%. The growth was primarily fuelled by a remarkable 94.8% year-on-year increase in electronics exports, driven by robust demand for AI-related technologies.
Electronics exports maintained strong momentum, with integrated circuits and disk drives leading the charge. Integrated circuits saw a 12.7% month-on-month rise, whilst disk drives surged by 88.2% month-on-month. In contrast, non-electronics exports grew at a more moderate pace of 17.7% year-on-year, with petrochemicals experiencing a decline due to supply disruptions linked to the Middle East conflict.
The divergence between electronics and non-electronics exports is expected to persist, as elevated prices from the Middle East conflict continue to impact non-electronics exports. However, there is optimism for a potential easing of energy prices, with a US-Iran agreement reportedly on the horizon.
Key export destinations such as Taiwan, the US, and South Korea recorded robust growth, with electronics exports exceeding 100% year-on-year in these markets. The sustained demand for AI-related products is anticipated to continue through the third quarter of 2026.
UOB has previously raised its 2026 GDP growth forecast for Singapore to 3.2% and plans to review projections following the May Industrial Production release on 26 June.
